Invest
Digital economy strategy set for $1.2bn boost
The federal budget is set to include a $1.2 billion injection into new technology and innovation, the Treasurer has revealed.
Digital economy strategy set for $1.2bn boost
The federal budget is set to include a $1.2 billion injection into new technology and innovation, the Treasurer has revealed.
The latest round of funding will see the government spend over $1 billion on growing Australia into a "modern and leading digital economy" by 2030.
Despite experts claiming Australia is behind its peers, the government said Australia’s place in the world will be defined by how it adapts to digital technology, with Treasurer Josh Frydenberg opining a vibrant digital economy is key to Australia’s economic future.
“Our digital economy strategy will allow Australian businesses to capitalise on the opportunities that digital technologies are creating,” the Treasurer said.
“Greater digital adoption will improve our competitiveness and lift our productivity – driving job creation and higher wages.”
Minister for the Digital Economy, senator Jane Hume, described the announcement as a landmark investment in Australia’s digital future.
“So many Australians are already participating in the digital economy, some without even realising it. Every contactless purchase, e-invoice, business website or small business going online – it’s all part of it and it’s growing rapidly,” Ms Hume said.
“This is a really exciting announcement, which will drive investment and uptake of emerging technologies, unlock the value of data, build skills for a modern economy, and enhance government service delivery.”
The government announced that the strategy builds on the previously announced investments in infrastructure, skills, cyber security, regulations and digital trade, taking the digital economy spend to around $2 billion over the 2020-21 and 2021-22 budgets, on top of the $1.67 billion Cyber Security Strategy announced in 2020 and the $4.5 billion investment in NBN upgrades.
The full digital economy strategy will be released on budget night, alongside further measures that support and complement the strategy.
Under the changes the government will now spend:
* Over $100 million to support digital skills for Australians, including a new pilot program for work-based digital cadetships that offer a flexible way for workers to build digital skills, investments in the cyber workforce, and scholarships for emerging technology graduates.
* Building Australia’s capability in artificial intelligence with $124.1 million in initiatives, including a National Artificial Intelligence Centre led by CSIRO Data 61, supported by a network of AI and Digital Capability Centres to drive adoption of AI across the economy.
* Enhancing government services through a $200.1 million investment to overhaul myGov, making it easier than ever for Australians to find the services they need, as well as a $301.8 million investment to enhance the My Health Record and an expansion of the digital identity system.
* Investment incentives to support business growth, including a digital games tax offset of 30 per cent to support Australia taking a greater share of the $250 billion global game development market, and changes to the way Australian businesses can claim depreciation of intangible assets like intellectual property and in-house software.
* Helping small and medium businesses build their digital capacity through a $12.7 million expansion of the Digital Solutions – Australian Small Business Advisory Service, and $15.3 million to drive business uptake of e-invoicing.
* $35.7 million to support emerging aviation technologies like drones, including grants to support the use of these technologies to address priority needs in regional Australia.
* Unlocking the value of data in the economy and setting the standards for the next generation of data management, including $111.3 million to accelerate the rollout of the Consumer Data Right in banking, energy and telecommunications.
* Strengthening safety, security and trust with over $50 million to enhance cyber security in government, data centres and future telecommunications networks.
RELATED ARTICLES
About the author
About the author
Economy
Inflation concerns grow as consumer price index rises, prompting potential interest rate hikes
The latest Consumer Price Index (CPI) data has sparked fresh concerns about inflation in Australia, with experts suggesting that further interest rate hikes may be on the horizon. The CPI, a key ...Read more
Economy
State Street economist comments on latest labour force data amid market anticipation
The latest labour force data, released today, has prompted a measured response from financial experts, with insights provided by Krishna Bhimavarapu, APAC Economist at State Street Investment ...Read more
Economy
RBA's interest rate hike impacts Australian employment landscape
The Reserve Bank of Australia (RBA) has decided to increase interest rates by 25 basis points, raising the cash rate to 3.85%. This move, aimed at controlling inflation, has elicited responses from ...Read more
Economy
RBA’s latest rate hike sparks debate over economic impact
In a surprising move, the Reserve Bank of Australia (RBA) has increased the cash rate, signalling a significant shift in its monetary policy approach. This decision comes amid a backdrop of unexpected ...Read more
Economy
When inflation reopens the rate door: A broker-sector case study in defending margins, clients and share
Australia’s latest trimmed-mean inflation reading at 3.3% has revived the prospect of another Reserve Bank move and put lenders, brokers and borrowers back on a tightening footing. This case study ...Read more
Economy
Inflation rise dampens hopes for interest rate cuts as employment dynamics shift
In a development that has dashed hopes for an interest rate cut, Australia's Consumer Price Index (CPI) has surged back to 3.8%, erasing the progress made since October. This unexpected rise in ...Read more
Economy
Inflation surge poses challenges for small businesses and consumers
The latest inflation figures have sparked concern among Australian businesses and consumers alike, with the rising costs expected to influence the Reserve Bank of Australia's (RBA) upcoming interest ...Read more
Economy
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
Household outlays are running hotter than economists expected, with the latest ABS readings showing broad-based gains across services and goods. That resilience is exactly the kind of demand impulse ...Read more
Economy
Inflation concerns grow as consumer price index rises, prompting potential interest rate hikes
The latest Consumer Price Index (CPI) data has sparked fresh concerns about inflation in Australia, with experts suggesting that further interest rate hikes may be on the horizon. The CPI, a key ...Read more
Economy
State Street economist comments on latest labour force data amid market anticipation
The latest labour force data, released today, has prompted a measured response from financial experts, with insights provided by Krishna Bhimavarapu, APAC Economist at State Street Investment ...Read more
Economy
RBA's interest rate hike impacts Australian employment landscape
The Reserve Bank of Australia (RBA) has decided to increase interest rates by 25 basis points, raising the cash rate to 3.85%. This move, aimed at controlling inflation, has elicited responses from ...Read more
Economy
RBA’s latest rate hike sparks debate over economic impact
In a surprising move, the Reserve Bank of Australia (RBA) has increased the cash rate, signalling a significant shift in its monetary policy approach. This decision comes amid a backdrop of unexpected ...Read more
Economy
When inflation reopens the rate door: A broker-sector case study in defending margins, clients and share
Australia’s latest trimmed-mean inflation reading at 3.3% has revived the prospect of another Reserve Bank move and put lenders, brokers and borrowers back on a tightening footing. This case study ...Read more
Economy
Inflation rise dampens hopes for interest rate cuts as employment dynamics shift
In a development that has dashed hopes for an interest rate cut, Australia's Consumer Price Index (CPI) has surged back to 3.8%, erasing the progress made since October. This unexpected rise in ...Read more
Economy
Inflation surge poses challenges for small businesses and consumers
The latest inflation figures have sparked concern among Australian businesses and consumers alike, with the rising costs expected to influence the Reserve Bank of Australia's (RBA) upcoming interest ...Read more
Economy
Australia’s spending surprise raises the odds of a February rate move — here’s how to protect margin and momentum
Household outlays are running hotter than economists expected, with the latest ABS readings showing broad-based gains across services and goods. That resilience is exactly the kind of demand impulse ...Read more
