In simplistic terms, the measures a state employs, to combat transnational crime, depends on the funds available: the expense of protecting against transnational crime competes with the expense of traditional defense and military security requirements for a share of the state's limited resources (These competing demands impact on the sovereign authority of the state as the weakness of either function inhibits the ability of the state to maintain its sovereignty. The underlying dynamics between the authority of the state and the adverse effects from transnational crime have not been fully explored and constitute a rich ground for an international relations study. Any state's authority, and ability to maintain a credible sovereignty, is threatened when organized illegal trafficking of humans can take place across its borders with impunity. The cost of addressing this transnational threat is a major economic and diplomatic burden in Southeast Asia and Australia. The underlying dynamics involving state authority and transnational crime need to be more fully explored with regard to Southeast Asia and Australia. The Australian government has become increasingly concerned at international crime, particularly in regard to transnational organized crime in human smuggling and trafficking. As a result, some border enforcement measures have improved, only to be matched by growing sophistication and countermeasures by trafficking and smuggling networks. Such trafficking has become a multi-billion dollar criminal business and the growing affluence and economic stability of Australia has made the country increasingly popular as a target destination. The Australian government has responded with a comprehensive approach that emphasizes protection of its sovereign authority. This paper addresses some major issues behind a comprehensive approach: how illegal migration is carried out; the effects on its victims; the effects on regional diplomacy in Southeast Asia; and the impact on Australia in particular