SYDNEY (BLOOMBERG) - Australia is facing an "unprecedented" wave of espionage, including cyber attacks and traditional spy craft, The Australian newspaper reported.

The country is facing daily threats of foreign interference, the paper reported, citing outgoing spy chief Duncan Lewis, who is director-general of the Australian Security Intelligence Organisation (ASIO).

The unprecedented level of attempted interference was a direct result of globalisation, he said, and was not specific to Australia.

Technological challenges are a game of "cat and mouse," Mr Lewis was quoted as saying.

One of ASIO's best features is its strong relationships within the Five Eyes security community, which includes the US, the UK, Canada and New Zealand, he said.

Mr Lewis, who will retire in September, told the newspaper the threat of terrorist attacks had "plateaued" but was still unacceptably high.