A criminal code change has clarified that the government-backed terrorism reinsurance pool provides cover for state-sponsored acts.

The updated code definition passed by federal parliament ensures the Australian Reinsurance Pool Corporation can respond to losses from terror attacks involving or supported by foreign state actors.

“This amendment is an important step in ensuring that Australia’s terrorism insurance framework keeps pace with the changing nature of the terrorism risk,” corporation CEO Christopher Wallace said.

“It reinforces the Australian government’s commitment to protecting the economy, the domestic insurance industry and policyholders from potential impacts of terrorism, including those backed or orchestrated by foreign state actors.” 

The criminal code amendment allows the change to flow through to other relevant legislation including terrorism pool laws, to ensure consistency.

The government previously said Iran’s Islamic Revolutionary Guard Corps directed at least two antisemitic attacks on Australian soil, seeking to stoke division.

Attorney-General Michelle Rowland told parliament it had long been understood that the terrorism listing framework did not apply to a body politic.

The amendment allows a foreign state entity to be listed as a state sponsor of terrorism when they have directly or indirectly engaged in or supported or advocated acts targeting Australia.

“These changes will make it more difficult, more risky and more costly for malicious foreign actors to seek to cause Australia and our community harm,” Ms Rowland said.

The terrorism reinsurance scheme, administered by the ARPC, provides protection to commercial property owners, insurers and businesses after declared incidents. 

The legislative amendment does not change the corporation’s role or the operation of the scheme.