INTRODUCTION Unlike other traditional security issues, cybersecurity can’t remain purely the purview of states. The multifaceted nature of the threat requires a multifaceted response. Australia and the US face an environment in which our understanding of ‘the rules’ is being challenged by states that push the envelope of acceptable behaviour online through disruption and disinformation. But governments aren’t the exclusive targets. States pursue competitive economic advantage through the theft of intellectual property from foreign corporations, cybercriminals siphon money from banks, and hacktivists compromise the data of organisations. So working with allies, bringing together the public and private sectors and pooling information and resources will be essential elements of tackling this threat effectively. The inaugural Australia–US Cyber Security Dialogue held in Washington DC in September 2016 examined all these issues and how best to manage them in a cooperative manner. The dialogue was facilitated by the Australian Strategic Policy Institute (ASPI) and the Center for Strategic and International Studies (CSIS). The robust bilateral and cross-sectoral discussion sessions, summarised below, traversed issues of cooperation in the Asia–Pacific, combating cybercrime and advancing the digital economy. The dialogue identified focus areas and a corresponding ASPI–CSIS joint work plan designed to further advance bilateral collaboration in this critical policy area. The three initiatives, outlined in the final section of this report, will sustain the momentum of Australia–US cyber cooperation, laying the groundwork for the agenda and driving discussion at the 2017 dialogue. Today’s cybersecurity landscape Cybersecurity is now a daily concern for world leaders and business professionals. From state-led cyber espionage and information operations to financially motivated cybercriminals exploiting regional safe havens, mature cyber policy is now a critical requirement for national security and economic prosperity. Our vulnerability to these threats only continues to increase as the connectivity of our civil society, infrastructure, governments and militaries grows exponentially, so we must take coordinated steps to mitigate these risks. However, the proliferation of cyberspace isn’t just a security concern; it also offers great opportunities for advances in governance and the digital economy, so we must develop a nuanced approach to cyberspace that balances security and openness. Cybersecurity is a frequent point of contention among leaders of the major powers. President Obama regularly exchanged strong views with his Chinese counterpart, President Xi, over state-led economic espionage and explicitly accused Russia’s President Putin of undertaking strategic information operations to influence the 2016 US Presidential Election. The cyber discussion is equally important among close allies in order to shore up economic and national security wellbeing. The partnership between Australia and the US is longstanding and deeply embedded in our national consciousness, but the relationship’s ability to adapt to a changing international environment is sometimes overlooked. It’s this bilateral capacity to embrace new forms of exchange and business that has enabled it to endure. Cognisant of this and the growing importance of cybersecurity discussions, Prime Minister Malcolm Turnbull travelled to Washington DC for bilateral meetings with President Obama in January 2016, ready to talk cybersecurity