‘More funding for pandas than tech’: entrepreneurs blast federal budget

The federal budget isn’t black and white – unless you’re a panda – prompting one tech entrepreneur to bemoan there’s more funds set aside for Australia’s Chinese guests than to support start-ups.

Adelaide Zoo’s panda program has two on loan from China and will receive $3.8m over five years.

Federal Treasurer Jim Chalmers did not mention artificial intelligence once in the federal budget papers, and that’s prompted a tech entrepreneur to say there was more funding for pandas than founders in the government’s plan to reignite the economy.

The Albanese government has forecast that AI would inject up to $600bn a year into the national economy by the end of the decade, but some tech leaders say it’s uncertain how it would achieve that goal, particularly after the budget failed to include any initiatives to harness AI.

UpCover co-founder Anish Sinha said that while it was not the first time the government made such an omission, it was becoming “increasingly unusual” as other governments spend billions of dollars to gain a foothold in the AI race.

“That in itself sets the tone for a federal budget that has so little to say about technology, that any sparse mention of a policy becomes a focal point,” Mr Sinha said.

“In that regard, this year’s budget has its sights firmly, and rightly set on cyber security, which we know from our customers is a major issue for small businesses. A breach can cost a business anywhere in the ballpark of $50,000 to resolve.

“But when you do some napkin maths, the federal government is today committing roughly $20 per business towards protecting them. Considering the hardship faced by a breach, and the impact it can have on a business, this hardly seems appropriate.”

So what is the government spending taxpayers’ money on, apart from tax cuts that are the equivalent of paying for a cup of coffee a week?

The budget included $3.8m over five years – plus an extra $3.8m in the early 2030s – to support Adelaide Zoo’s Giant Panda Program, which has two new animals, replacing previous ones sent back to China.

Carbar chief executive Des Hang.

Des Hang, chief executive of Carbar – known as the “Netflix of cars” – said there was more funding for pandas than tech.

“We may be better off becoming a zoo keeper in Australia than a start-up founder. The federal budget found funds for pandas in Adelaide, but many of the big ticket start-up impacting items flagged ahead of the budget, like a re-examination of R&D (research and development) tax incentives, were given a firm swerve,” Mr Hang said.

“In their place, we got reform to encourage overseas investment into business – albeit via yet another new committee. And a continued focus on the energy transition.”

The government will ban non-compete clauses for employees earning below $175,000 to ensure they are freed to move to better, higher paying jobs. Mr Chalmers said more than three million workers were captured by the clauses, including childcare, construction workers and hairdressers.

But Mr Hang said a ban “won’t really affect the start-up ecosystem that much either”.

“Well, at least not for us, as we don’t practice in poaching staff,” he said.

“It’s getting harder and harder to see how the federal budget will genuinely impact founders or anyone planning to innovate in Australia. Perhaps this is the goal? But it’s an alarming trend with state governments nationally not being in a fantastic position to pick up the slack.

“That’s not to say the budget is all bad. Tax cuts will flow on to consumer spending, and the focus on cutting red tape and improving productivity is welcome – especially if that means a closer look at government services offered to the business community.”

Boomi director of solution consulting for Asia Pacific David Irecki said “now is the time to double down” on tech initiatives.

“While it’s no surprise this year’s federal budget prioritised cost-of-living relief and core infrastructure, it’s important Australian government and industry continue to invest in AI, digital skills, and emerging technologies,” Mr Irecki said.

“Over the past 12 months, we’ve seen meaningful federal discussions around AI guardrails, governance, and digital capability. Just because this year’s budget didn’t attach a dollar figure to those priorities doesn’t mean the momentum will or should stop.

“Australia has the opportunity to build on these existing initiatives and perhaps take cues from our Asia-Pacific neighbours, who are investing heavily in AI talent, workforce upskilling and cross-sector collaboration such as the enterprise compute initiative in Singapore, and Japan’s intention to position the nation as “the most AI-friendly country in the world” with AI-friendly legislation.”

SAP Australia and New Zealand president and managing director Angela Colantuono said the budget indirectly supported AI via a $7.01m injection to extend six science, technology, engineering and mathematics (STEM) initiatives, to support better educational outcomes for children and students.

“We support a greater focus on AI as a differentiator for Australia through targeted initiatives. Supporting SMEs’ digital transformation will not only strengthen their competitiveness, but also fuel broader economic growth and productivity in Australia’s thriving small business sector,” Ms Colantuono said.

“At SAP we see first hand how AI is transforming industries and reshaping work across government, business and society, making digital skills more critical than ever to prepare for an AI-driven future.

“From streamlining business operations to improving citizen services in areas like healthcare, AI has the power to unlock efficiencies and greater productivity to benefit both the economy and the community. This investment lays the foundation for Australia to sharpen its global edge and future-proof its workforce.”

Originally published as ‘More funding for pandas than tech’: entrepreneurs blast federal budget