A statement said the three companies were Vault, which is a Protected cloud provider certified by the Australian Signals Directorate; and cyber security providers QuintessenceLabs and Ziroh Labs.
Canberra-based Vault and QuintessenceLabs were given part of the $3 million 2017-18 Project Fund by the Federal Government body AustCyber and this money is being used to develop the technology. The two companies will provide funds to match the amount of the grant, which was not specified.
It will offer advanced encryption with quantum-based entropy-as-a-service and will be available to both government and the private sector.
“Cyber security is a strategic priority for Australia, as much for our national security as our economic prosperity," said Michelle Price, chief executive of AustCyber.
"By supporting cyber security projects led by innovative Australian companies, we are raising the benchmark of capability development in the country and giving the Australian community increased confidence that their information is safe and secure.”
Vault general manager Tony Marceddo said: “It’s positive to see the Australian Government investing in the future of technology and cyber security by supporting the collaboration of three Australian companies.
“It’s critical that we continue to research new ways in which we can protect and secure Australians’ personal data. By combining Ziroh’s homomorphic encryption, QuintessenceLabs’ quantum key generation and Vault’s protected cloud we plan to create a unique solution for the global security landscape.”
The statement said Ziroh’s homomorphic encryption secured files while they were at rest, ensuring they were encrypted all the time. QuintessenceLabs is using quantum key generation, which addresses traditional computers’ lack of ability to randomise passwords and keys, to create keys that will secure the encrypted files.
To add another layer of security, the file would then be stored on Vault’s cloud.
Aninda Sen, co-founder and ANZ vice-president at Ziroh Labs, said: “Organisations and individuals are constantly sharing critical information, whether that be a username and password or mobile banking information.
"In every interaction, protection of people’s data must be a priority. If we can integrate homomorphic encryption, quantum key generation and secure cloud we can guarantee that Government and businesses will have the most secure system available.”
Vikram Sharma, founder and chief executive of QuintessenceLabs, said: “Through our quantum key generation we are able to create a key that has the highest standards of security possible.
"Vault, Ziroh Labs and QuintessenceLabs have three outstanding security solutions that work really well on their own. Bringing them together will be a great achievement for the Australian technology sector. We are creating a solution that has three levels of some of the most advanced security solutions available.”