The cost of Australia’s involvement in Iraq in fighting Isis is forecast as $403m over four years while $250m will be spent on “new intelligence measures” for Australian spy agencies.

Australia is spending a further $350m on expanding operations in Afghanistan and the Middle East.

Some $296m will be spent on information technology capabilities to collect information more effectively and $131m will be spent on helping telecommunication companies upgrade their systems to retain Australians’ metadata for two years.

The budget papers say the $131m is half of what the industry itself will have to spend. A further $23m will be given to the Attorney General’s Department and the Australian Crime Commission to implement and oversee the data retention. A further $22m is earmarked to “combat terrorist propaganda and counter violent extremism”.

Australia’s mission in Iraq, called Operation Okra, is part of an international coalition to “disrupt and degrade” the Isis threat. Under the operation the air task group conducts air and combat support operations in Iraq and the special operations task group advises and assists Iraq’s security forces in their operations against Isis.

Australian Prime Minister Tony Abbott has said the mission is “fundamentally humanitarian” with the hope to drive Isis entirely out of Iraq.