Inside the 2024 Budget: A $22.7 Billion Tech Transformation Unveiled

The government has disclosed a substantial $22.7 billion allocation over the upcoming decade towards advancing innovation, digital technologies, scientific endeavours, and renewable energies, labelling it as a step towards crafting a ‘future made in Australia‘.

During his address to parliament, Treasurer Jim Chalmers emphasised that this investment initiative will position Australia as a vital player in the global economy.

He underscored that this strategic plan aims to entice investments in critical sectors and elevate our nation as a leading force in renewable energy. It indicates that the Australian government is keen on maintaining economic and innovative strides to stay ahead.

Regarding telecommunications and technology, Minister for Communications Michelle Rowland highlighted a $1.3 billion boost within the NBN framework, along with intensified measures to combat scams, a new initiative targeting the negative impacts of gambling-like video games, and advancements in digital inclusion for First Nations communities.

All these details and more are elaborated on below, offering a comprehensive overview of the technological investments in the 2024-25 federal budget.

Future Made in Australia Act

The Future Made in Australia Act is a promising initiative focused on maximising the economic and business benefits of the shift to net carbon-zero and looking at and supporting Australia’s place in the global green economy. The Act is focused on attracting and enabling investment, securing economic security and backing Australian innovation in green technologies.

Electric Vehicles

Regarding electric vehicles (EVs), the primary revelation revolved around renewable energy and the updated vehicle efficiency norm.

Exploring the revised vehicle efficiency standard, it is anticipated to generate savings of around $95 billion for Australians at gas stations by 2050 while curtailing transport emissions. We expect this will have a dramatic impact over the next few years as manufacturers are forced to start adhering to the new vehicle efficiency rules.

Broadband Infrastructure

Continuing to enhance the NBN infrastructure, the federal government has earmarked $1.2 billion from a more significant $2.4 billion equity investment for the 2024-25 period. This allocation is intended to bolster NBN Co’s fibre upgrade program, aiming to deliver gigabit speeds to 10 million fixed-line premises by the close of 2025.

Quantum Computing

A groundbreaking initiative has been revealed by the federal government, showcasing a $466.4 million partnership aimed at constructing Australia’s pioneering commercial-scale quantum computer in Brisbane. In collaboration with PsiQuantum and the Queensland government, this strategic move seeks to propel the nation’s quantum computing capabilities to new heights.

PsiQuantum will spearhead the development of the first commercial-scale quantum computer in Brisbane and also play a pivotal role in establishing itself as the primary tenant within an expanding quantum precinct in the city. Additionally, this partnership promises to create opportunities for PhD positions and foster collaborative research ventures in the burgeoning field of quantum computing.

Moreover, in a drive to further bolster technological progress, the federal government had previously introduced a $101.2 million investment to assist enterprises in seamlessly integrating quantum and artificial intelligence (AI) technologies into their operational frameworks, paving the way for innovative advancements in the realm of quantum computing.

Clean Energy

Unveiled as a cornerstone of the federal government’s visionary’ future made’ initiative, renewable energy sources and clean technologies take centre stage in supporting Australia’s sustainable evolution. In a resolute commitment to this future, the government has pledged substantial investments towards the advancement of clean energy technologies, earmarking $1.4 billion over 11 years starting from 2023-24, focusing particularly on solar energy and battery technologies.

Determined to drive innovation and self-sufficiency, the Australian government is set to inject more than $500 million into the Battery Breakthrough Initiative, aimed at enhancing the country’s battery manufacturing capabilities. This strategic investment not only seeks to maximise the value derived from Australia’s abundant natural resources but also aims to foster diversity in global battery supply chains, thus aiding the worldwide transition towards achieving net-zero emissions.

Further underpinning these endeavours is an allocation of $835.6 million over ten years starting from 2024-25 for the Solar Sunshot program, spearheaded by the Australian Renewable Energy Agency. This initiative is crafted to fast-track the development of solar manufacturing capabilities, fortifying the industry’s supply chain resilience through a series of production incentives and supportive measures. Whilst good in theory, we are hesitant as to whether these initiatives will be successful given the cost of manufacturing and lack of economies of scale in Australia.

Additionally, investments totalling $20.3 million over five years from 2023-24 have been earmarked for the Powering Australia Industry Growth Centre and the Future Battery Industries Cooperative Research Centre. These investments are poised to bolster collaborative efforts between industry and research sectors, laying emphasis on workforce training across various dimensions of battery research, manufacturing, transportation, and recycling, thus catalysing comprehensive advancements across the battery sector.

Moreover, the Australian Made Battery Manufacturing Precinct is set to receive a boost of $5.6 million in the fiscal year 2024-25, fuelling the drive towards enhanced battery manufacturing capabilities within the country’s borders, a testament to Australia’s commitment to sustainability and technological progress within the clean energy sector.

Digital Inclusion for First Nations Peoples

The Albanese government is actively bridging the digital disparity by amplifying support for increased connectivity within First Nations communities, aiming to unlock the manifold benefits of digital transformation for these populations.

In the current fiscal year, a dedicated budget of $48 million has been allocated to facilitate the provision of additional free community Wi-Fi services in remote First Nations territories. This initiative is complemented by the establishment of a specialised First Nations Digital Support Hub and the implementation of a network of digital mentors. These efforts are geared towards fostering digital literacy, ensuring secure digital navigation, and reinforcing the foundation for safe and empowered internet usage within these communities. Furthermore, there will be a concerted effort to enhance the national data repository concerning First Nations digital inclusion.

Building upon past commitments, this financial injection follows an earlier pledge of up to $20 million made in February 2024, aimed at furnishing free community Wi-Fi amenities to approximately 20 First Nations settlements. These initiatives are a direct response to inputs and recommendations originating from the First Nations Digital Inclusion Advisory Group, which was convened in January 2023 to address the unique digital needs and challenges experienced by these communities.

Artificial Intelligence

Allocating $39.9 million, the federal government is intensifying Australia’s regulatory framework to ensure the prudent and secure advancement and implementation of AI technologies. Concurrently, a National Robotics Strategy is on the horizon to advocate for the conscientious manufacturing and adoption of robotics and automation solutions in the country.

Earmarked for noteworthy enhancements, the National AI Centre is set to receive an additional $21.6 million infusion over the ensuing four years, accompanied by the establishment of an AI advisory body within the Department of Industry, Science, and Resources.

In tandem with these initiatives, a commitment of $15.7 million spread across the forthcoming two years has been pledged to fortify industry analytics capabilities and streamline coordination for AI policy formulation, regulatory measures, and government engagement practices. Noteworthy focus areas encompass the reassessment and fortification of existing regulations within key sectors like healthcare, consumer services, and copyright legislation.

Moreover, an added investment of $2.6 million spanning three years is slated to proactively counteract and mitigate national security implications linked to AI technologies, underscoring the government’s commitment to safeguarding against potential risks arising from the proliferation of AI applications.

Digital Payments and Trade

Over the next four years, starting from 2024–25, a total of $7.5 million will be allocated by the government towards the modernisation of regulatory frameworks within the financial services sector. This endeavour is aimed at enhancing competition and bolstering consumer protections pertaining to services facilitated by emerging technologies.

This comprehensive initiative involves in-depth exploration into central bank digital currencies, and the formulation of a fresh regulatory architecture tailored for payment service providers – covering digital wallets and electronic stored value providers. It encompasses delineating licensing protocols and introducing a mandatory ePayments Code to fortify the operational standards within this sector.

Online Protections

In a proactive stride towards curtailing online fraud and scams while enhancing child protection, the government is instituting initial measures aimed at safeguarding Australian citizens.

To fortify the regulatory landscape, the Australian Communications and Media Authority (ACMA) is set to receive $12.4 million over four years commencing from 2024-25. This allocation is earmarked to enhance oversight, revamp existing scam prevention protocols for telecommunication companies, and intensify enforcement actions against fraudulent activities, thereby bolstering efforts to thwart, identify, and disrupt scams.

Under the stewardship of the Albanese government, a robust multi-regulatory framework is being rolled out to combat fraudulent schemes, showcasing a concerted effort to shield Australians from online threats. Upholding the mantle of protection, the Albanese Government is spearheading significant strides in fortifying child safety in the digital realm by allocating funds towards advancing an age assurance trial to ensure online environments are secure for the young populace.

A dedicated investment of $6.5 million is slated for evaluating diverse technologies and age verification methodologies, inclusive of stringent privacy and security criteria. The resultant insights are poised to enrich the ongoing endeavours of Australia’s eSafety Commissioner under the purview of the Online Safety Act, steering the formulation of industry codes and standards to diminish children’s exposure to inappropriate online content.

Digital ID

The government is accelerating the expansion of digital identification services with a substantial investment totalling $288.1 million. This initiative aims to foster the broadening reach and functionality of the nation’s Digital ID System, empowering a larger segment of the Australian populace to tap into the economic, security, and privacy advantages facilitated by Digital ID technologies.

Furthermore, an additional investment of $11.0 million spanning four years has been allocated to the Attorney-General’s Department. This funding is designated to augment the capabilities of the current Credential Protection Register, allowing individuals to efficiently manage their digital credentials while fortifying safeguards against identity-related offences.

Conclusion

The unveiled budget should ignite anticipation for technology and innovation businesses. With the theme “Future Made” resonating through the financial allocations, the Australian government’s pledge of $22.7 billion over the next decade towards boosting innovation, digital technologies, scientific advancements, and renewable energies sets a bold trajectory towards crafting a future rooted in Australian innovation.