TCA signs partnership with UK to help fill projected tech worker shortfall and win AI race

Australia’s peak tech lobby group has signed a deal with its UK counterpart that means tech workers can more easily get jobs here in a bid solve a projected chronic IT shortage.

UK Prime Minister Keir Starmer is betting big on AI and Australia is part of those plans.

Ten Pound Poms were a hit 80 years ago, and Australia’s peak tech lobby group is now looking to resurrect elements of that strategy as part of a broader effort to strengthen artificial intelligence capability and help solve a chronic talent shortage.

The Tech Council of Australia – which Atlassian co-founder Scott Farquhar chairs – has signed a memorandum of understanding with techUK to promote more collaboration with Britain and lessen the reliance on US-based companies.

TCA chief executive Damian Kassabgi said the partnership would also help fill the projected shortfall of almost 200,000 tech workers that Australia will need by the end of the decade, describing it as a “strategic step towards addressing that gap”.

“By increasing skilled immigration from the UK, which is home to some of the world’s leading universities and has a strong focus on digital and AI training, we’re opening the door to a deeper talent pool,” Mr Kassabgi said.

“At the same time, this partnership opens up new pathways for Australian tech professionals to gain valuable international experience in the UK. By working in one of the world’s leading tech ecosystems, they will have the opportunity to develop new skills, build global networks, and return home with insights that can drive local innovation and strengthen our domestic capabilities.

“It’s a win-win that strengthens both our tech ecosystems and ensures we meet the workforce demands of both our countries.”

Ten Pound Poms referred to an assistant migration scheme the Australian government adopted in 1945 to attract more British citizens down under. Their moniker refers to the charge of 10 pounds in processing fees to migrate to Australia.

The TCA estimates Australia will need to employ an additional 653,000 tech workers by 2030. This represents an increase of 186,000 versus a “business-as-usual approach”.

The partnership will focus on emerging and critical technology areas including artificial intelligence, cybersecurity, digital identity, fintech.

TCA boss Damian Kassabgi.

Mr Kassabgi said the UK was the third-biggest tech sector in the world, showing “bold leadership in AI”, with venture capital investors pumping $16.2bn into UK tech last year.

This month Prime Minister Keir Starmer unveiled a £1bn ($2.09bn) package to scale up its computing power twenty-fold, partnering with Nvidia, Google, Microsoft and others to train about 7.5 million workers to strengthen economic growth.

“This kind of ambition positions the UK not just as a fast adopter but as a potential AI frontrunner. It’s a clear signal they see AI as a real driver of economic success and competitiveness,” Mr Kassabgi said.

“For Australia, this presents a valuable opportunity. By deepening our collaboration with the UK, whether through joint ventures, shared talent or access to infrastructure, we can accelerate our own AI capabilities. Aligning with a partner that is investing at this scale ensures we’re not left behind but instead are actively shaping how AI can be used and making sure its full benefits reach our shores.

Mr Kassagbi said the partnership with techUK was not about diversifying away from the US – with the British government’s investment showing that partnering with American company remained essential.

But he said having a “broader set of options is just good business”.

Keir Starmer and Nvidia’s Jensen Huang.

“Broadening our international partnerships isn’t about turning away from existing connections, it’s about opening more doors for Australian tech businesses to grow and compete on a global scale.

“The US will always be an important market, and shining a light on economic opportunities in additional markets — like the UK — helps our Australian tech companies scale more sustainably, tap into new customer bases, attract diverse investment, and navigate global market shifts with greater agility and confidence. Teaming up with techUK is just one more way we’re backing the next Canva or Atlassian to break into the UK market.

“The UK brings a unique set of strengths to its partnership with Australia’s tech sector, including regulatory alignment and shared focuses across AI, cybersecurity, digital identity and fintech. For Australian companies, this opens up more opportunities to co-develop technologies, scale, and attract investment.”

The partnership coincides with the second anniversary of the Australia-UK Free Trade Agreement. Under the agreement, more than 99 per cent of Australian goods can enter the UK duty free, including sheep meat, beef, dairy, sugar and wine, while providing enhanced opportunities for Australians to live and work in the UK.

Trade between the two countries exceeds $34bn a year. This compares with $125.8bn between Australia and the US, according to the Department of Foreign Affairs and Trade.

Data centre operator Equinix Australia welcomed the tech partnership. Managing director Guy Danskine said it was “a timely and strategic move that will help alleviate critical skills shortages across the technology sector – including in Australia’s fast-growing data centre industry”.

“As demand for AI and digital infrastructure accelerates, so too does the need for a skilled, globally connected workforce to support it. Tapping into the UK’s deep bench of tech talent and experience is a practical step toward strengthening Australia’s data centre capabilities and ensuring we can scale securely and sustainably. As a member of both Tech Council of Australia and techUK, Equinix welcomes initiatives that help diversify the talent pipeline, support workforce mobility, and foster international collaboration. These are the foundations of a resilient digital economy,” Mr Danskine said.

Anthony Albanese and TCA chair Scott Farquhar. Picture: Richard Dobson

TechUK’s deputy chief executive Antony Walker said tech played a “huge role” in the UK-Australia partnership, citing AUKUS defence pact (although the Pentagon is reviewing this agreement).

“The UK and Australia are not just connected by history and language, but by a deep commitment to open markets, democratic governance, and a rules-based digital world. We are looking forward to working together, sharing knowledge and expertise, and creating opportunities for our respective members.”

Originally published as TCA signs partnership with UK to help fill projected tech worker shortfall and win AI race