Defence says 'not appropriate' to track former ADF personnel after China poaching concerns

Reports late last year revealed Western pilots, including former Australian Defence Force personnel, had allegedly been approached by China to train its military.

Deputy Prime Minister and Defence Minister Richard Marles confirmed work was underway "tightening up policies within defence" to ensure classified information was not passed on to foreign governments "irrespective of whether or not you work for Australia anymore".

But Department of Defence deputy secretary Celia Perkins made clear at Senate estimates that former personnel were not being tracked once they had handed over their credentials, saying she didn't believe it was appropriate.

Opposition defence spokesperson Andrew Hastie welcomed Mr Marles' comments but had not yet been briefed on the federal government's proposed policy or legislative changes.

Ms Perkins said the department's inquiry into the matter, following revelations some former Australian pilots had been approached to work with the Chinese government, found areas Defence could "strengthen" to reduce the risk.

Greens senator David Shoebridge asked how the report Defence handed to Mr Marles on December 14 last year tracked the employment of former personnel.

The inquiry did not cover former serving members who no longer held security clearance, Ms Perkins said.

"I don't believe it's appropriate under Australian systems of government to track people after they leave their employment," she said.

"People are free to to live their lives once they've handed back their obligations."

The focus was instead on former personnel who remained engaged with the ADF through ongoing reserve service, for example.

"Our focus will be on where people have an enduring relationship, we give them advice and support," she said.

"Where people through their service have had access to some of our most sacred and sensitive technology or training, that we reinforce those obligations that they carry through life, and that we build some stronger linkages."

Mr Hastie, who himself was a serving member until 2015, said former ADF personnel "who have served in classified and sensitive capabilities should be prohibited from working for a foreign power".

"I think we need to be mindful that someone like myself who left the Defence Force, about seven or eight years ago - I still understand quite a few of the sensitive capabilities," Mr Hastie said on Wednesday afternoon.

"Certainly, someone like myself or someone from submarine capability, you'd certainly want to make sure that we're aware of where they are and who they're working for, because this is how our national secrets can be passed on."

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Dozens of reports surfaced late last year alleging former British pilots were paid as instructors to China's military.

It was confirmed by Britain's Ministry of Defence, who said it was taking steps to "deter and penalise" personnel who took work for the People's Liberation Army.

Mr Marles announced his department was launching an investigation into the matter in November after credible evidence suggested Australian pilots had also been approached.

"The information provided to me so far presents enough evidence to warrant the need for a detailed examination into the adequacy of current Defence policies and procedures addressing this matter," he said at the time.

Ms Perkins would not reveal details of the department's report to Mr Marles, but said it contained a "very detailed look" at policies relating to keeping classified information protected even after employment.