Missed opportunity: Tech sector delivers its verdict on the federal budget
The federal government’s second budget prioritised cost of living at the expense of AI and quantum computing funding, start-ups say.
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The federal government’s second federal budget has been described as a missed opportunity by local start-ups, who have welcome new cyber security funding but have criticised a relative lack of investment across artificial intelligence and R&D.
Tuesday’s budget prioritised cost-of-living relief over new innovations, according to Sapia.ai chief executive Barb Hyman, who described the budget a “massive missed opportunity” in terms of leveraging new AI technologies.
“In the US, spending on AI is expected to hit $US3.3bn this fiscal year. In Australia, we’ve just allocated roughly $20m per year for five years, split across AI and quantum computing,” Ms Hyman told The Australian.
“It’s reasonable that this isn’t a budget for the tech sector, or innovation, given the sharp focus on cost of living. On any other topic, it’s right not to complain when thousands of Australians will be better off due to funds put towards welfare and support.
“But we can’t stress enough – as an AI company ourselves – this innovation is time sensitive.
“By the time it’s a focus globally, it will be too late. There is a reason companies like Google, Amazon and Microsoft aren’t slowing down their progress despite ongoing debate on the power and ethics of AI.”
The budget’s $392.4m grant for small businesses to develop new products and expand their office footprint was welcomed by industry.
Michael Tutek, the co-founder and CEO of e-commerce platform preezie, said the funding arrived at a time when most start-ups were struggling to raise capital under the current economic conditions, and needed a boost to their budgets.
“The new $392.4m Industry Growth Program, slated to help SMBs (with) their operations by developing new products and services is precisely the kind of thing we need to inspire innovation for both new and established businesses,” he said.
However, that funding was just about the only good news for start-ups, which rued a lack of changes to the contentious R&D tax incentive scheme.
“What was missing from the federal budget was any acknowledgment of R&D tax incentives, which I think is not only important but should be broadened even further by the government by introducing similar grants aimed at sales and marketing efforts. This would significantly help increase local enterprises to succeed,” Mr Tutek said.
Funding which allowed for businesses to expand their operations globally would be a welcome gift, one that Mr Tutek said he hoped to see in future budgets.
The nation’s peak IT body, the Australian Information Industry Association, said overall it was pleased with the budget announcements, and that they were promising for the nation’s tech sector.
“The budget importantly makes good on promises to change migration and skills settings so that high-demand digital jobs and training is funded and supported, including assisting post-study work rights for Temporary Graduate Visa holders for in-demand skills and key sectors that the AIIA has been advocating,” chief executive Simon Bush said.
The AIIA said it welcomed funding for the Future Made in Australia Office, which received $18.1m, the $2bn allocated for funding key government technology platforms and the more than $8bn for ICT procurement by the government.
“The commitment of $101.2m over five years to support the growth of critical technologies is pleasing, but well short of the $1bn dollars over five years the AIIA has advocated for in its submission to the National Quantum Strategy,” Mr Bush said.
The Digital Industry Group Inc (DIGI), the lobby group representing tech giants including Meta, TikTok, Twitter, Google and Apple, said a funding increase for the office of the eSafety Commissioner was a much-needed step for online safety.
“The breadth of today’s digital ecosystem requires relevant regulators to be extremely well resourced to address the scale of challenges online, which is why increases in funding for the OAIC and the Office of the eSafety Commissioner are welcome and important,” DIGI managing director Sunita Bose said.
“The government’s focus on community education about online harms is an extremely important complement to industry approaches on these complex issues.
“We welcome the support of media literacy in culturally and linguistically diverse communities about misinformation, as well as the focus on education programs delivered through eSafety.”
Originally published as Missed opportunity: Tech sector delivers its verdict on the federal budget
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