Freedom of Information documents, obtained by AAP, have indicated that the Cyber War exercise Cyber Storm II floored government and private companies who did not realize how bad things could become.

Apparently, they were surprised by the "borderless nature" of cyber attacks and the "speed with which they can escalate." Cyber Storm tested critical infrastructure including dam walls, telecommunications and government computer networks.

Microsoft, the Commonwealth Bank, Optus, Westpac, Woodside Energy and the Australian Securities Exchange took part in the program. Government agencies playing a part in the war games included the Australian Federal Police, Defence Signals Directorate, ASIO, Centrelink and the Department of Foreign Affairs and Trade.

The exercise proved that the major elements of the national response arrangements are sound, but as expected also found a number of areas where improvement would be possible.