The defence department will work on tightening its secrecy clauses after reports that Western pilots have been approached by China to train its military.
Defence Minister Richard Marles asked his department to review its policies to stop former soldiers and personnel sharing classified information with foreign powers.
Mr Marles says the review has recommended "tightening up policies within defence", although he hasn't revealed further details of its findings.
He also refused to confirm if any personnel had been approached by agents of Beijing after reports a South African intermediary had worked to poach Australian, British and New Zealand pilots to provide military training.
"This is obviously a concerning set of circumstances and we need to make sure we have the most robust policies in place," he told Sydney radio station 2GB on Wednesday.
"One of the recommendations is that we develop some additional legislation, which the government will now pursue."
Mr Marles said there should be no doubts among former defence personnel about their obligations when it came to keeping the nation's secrets.
"Everyone who's part of the Australian Defence Force right now knows what's expected of them - so I want that to be really clear," he said.
"This is really to make sure that there is absolutely no doubt whatsoever that not just the secrets that people might come into contact with, but everything that surrounds it, forms part of that."
Defence department deputy secretary Celia Perkins said the review also made recommendations about defence training and employment policies, expanding outreach to former members and support channels.
Ms Perkins said the minister had accepted all the recommendations.
"We did a very detailed look at all of those policies and we're now working through a very active implementation plan that we'll deliver throughout 2023," she told senators on Wednesday.
