Inside the 2024 Budget: A $22.7 Billion Tech Transformation Unveiled
With the budget dropping on the 14th of May, we’ve now had a day to review its impact on business, technology, and innovation. The budget theme is “Future Made”, but how much of that is spin, and how much is sizzle?
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.
5 Tips for Streamlining Your Procurement Process
In today’s fast-paced business environment, streamlining procurement processes has become essential for businesses of all sizes. Procurement, which involves the acquisition of goods and services, is an integral part of any business. However, the process can be time-consuming, expensive, and complex.
Our Tips for Businesses Looking To Streamline Their Procurement Process
- Define Your Procurement Strategy
The first step in streamlining your procurement process is to define your procurement strategy. A procurement strategy outlines how your business will acquire goods and services to meet your objectives. It should be aligned with your overall business strategy and consider factors such as cost, quality, and time. By defining your procurement strategy, you can ensure that all stakeholders understand the procurement process, and you can establish clear policies and procedures. - Leverage Technology
Technology has made procurement processes more efficient and transparent. Automation tools such as procurement software can help streamline procurement activities, including purchase order creation, supplier management, and invoice processing. By leveraging technology, businesses can save time, reduce costs, and improve accuracy. - Negotiate with Suppliers
Effective negotiation with suppliers can result in cost savings and improved supplier relationships. Before entering into a contract with a supplier, it’s essential to conduct market research to determine the fair market value of the goods or services you need. Negotiate the best possible terms, including price, delivery time, and payment terms. - Establish Standard Operating Procedures
Establishing standard operating procedures (SOPs) can help streamline the procurement process. SOPs provide a framework for procurement activities and ensure that everyone follows the same process. Standardisation can help reduce errors, increase efficiency, and improve compliance. - Measure Performance and Continuously Improve
Measurement and continuous improvement are critical to streamlining the procurement process. Establish key performance indicators (KPIs) and regularly measure performance against them. KPIs could include metrics such as cost savings, supplier lead time, and quality of goods or services. By measuring performance and identifying areas for improvement, businesses can continually refine their procurement processes and achieve greater efficiency.
Conclusion
In conclusion, streamlining your procurement process can lead to cost savings, improved supplier relationships, and increased productivity. By defining your procurement strategy, leveraging technology, negotiating with suppliers, establishing SOPs, and measuring performance, businesses can achieve greater efficiency and improve their bottom line.
Financing Technology Purchases: How to Make Smart Decisions
In today’s rapidly evolving business landscape, technology plays an increasingly crucial role in driving growth and staying competitive. But for many businesses, the cost of upgrading technology can be a significant barrier to success. Fortunately, there are several ways to finance technology purchases, from leasing to financing to buying outright. In this post, we’ll explore each of these options and provide guidance on how businesses can make smart financing decisions that align with their budget, timeline, and business needs.
Leasing Technology
Leasing technology is a popular financing option for businesses looking to stay up-to-date with the latest tech trends without breaking the bank. With a lease, businesses can access the latest technology without having to pay the full purchase price upfront. Instead, businesses pay monthly or quarterly lease payments for the use of the technology over a set period, typically 24 to 60 months.
Pros
- Low upfront costs
- Flexible payment terms
- Tax benefits
- Access to the latest technology
Cons
- Higher overall costs compared to purchasing outright
- Potential for hidden fees and charges
- Limited customisation options
- No ownership at the end of the lease
Financing Technology
Financing technology is another popular option for businesses looking to purchase technology without paying the full purchase price upfront. With financing, businesses take out a loan to purchase the technology, and then make monthly or quarterly payments over a set period, typically three to five years.
Pros
- Ownership of the technology
- Potential tax benefits
- Lower overall costs compared to leasing
- Customisation options
Cons
- Higher upfront costs than leasing
- Interest rates and fees
- Possible impact on cash flow
- May require collateral
Buying Outright
Buying technology outright is a straightforward option that involves paying the full purchase price upfront. This option is best suited for businesses with ample cash reserves and those looking to customise their technology solutions.
Pros
- Ownership of the technology
- No additional costs or fees
- Ability to customise solutions
- Small impact on cash flow
- Cons
- Higher upfront costs
- Potential for rapid technology obsolescence
- No access to the latest technology
- No tax benefits
- Tips for Making Smart Financing Decisions
TL;DR
Regardless of which financing option a business chooses, it’s essential to make informed decisions that align with its budget, timeline, and business needs. Here are some tips for making smart financing decisions:
Consider cash flow: Will the financing option impact the business’s cash flow, and if so, how? Make sure to factor in monthly or quarterly payments and any associated fees when determining affordability.
Understand the terms: Read the fine print and understand the terms of the financing agreement, including interest rates, fees, and repayment periods.
Compare options: Compare leasing, financing, and outright purchase options to determine which one aligns best with the business’s needs and budget.
Seek expert advice: Consult with a financial advisor or technology expert who can help guide the decision-making process and provide insights into the latest technology trends and financing options.
Conclusion
In conclusion, financing technology purchases is a critical decision that can impact a business’s bottom line, cash flow, and long-term success. By considering factors like budget, timeline, and business needs, and by following the tips outlined in this post, businesses can make smart financing decisions that enable them to stay up-to-date with the latest technology trends while maintaining financial stability.
How the Internet of Things is Changing Connectivity for Businesses
The Internet of Things (IoT) is rapidly changing the way businesses operate. It refers to the concept of connecting devices, sensors, and other objects to the internet and enabling them to communicate with each other. This technology has the potential to transform the way businesses operate by providing real-time data and insights that can help companies make more informed decisions.
What is the Internet of Things?
The Internet of Things refers to the concept of connecting everyday objects, devices, and machines to the internet and enabling them to communicate with each other. These connected devices can be anything from smartphones and wearables to cars, home appliances, and industrial equipment.
IoT devices have sensors and processors that allow them to collect and exchange data with other devices or a central server. This data can be analysed to provide insights into how the device is being used, its performance, and its environment. For example, a smart thermostat can sense the temperature and humidity in a room and adjust the heating or cooling accordingly.
How is the IoT changing connectivity for businesses?
- Automation and Efficiency:
Firstly, with connected devices and sensors, businesses can automate processes and reduce the need for manual intervention. For example, in a warehouse, sensors can be used to track inventory levels, monitor equipment performance, and detect anomalies. This data can be used to optimise workflows, reduce downtime, and increase productivity. - New Business Models:
Secondly, the IoT is enabling new business models and revenue streams. With connected products, companies can offer new services and experiences that were not possible before. For example, a smart home security company can offer real-time monitoring and alerts to homeowners, providing an additional layer of security and peace of mind. This creates new opportunities for businesses to generate revenue and build brand loyalty. - Pervasive Connectivity:
Thirdly, devices and sensors are being integrated into everything from cars to medical devices, creating a network of interconnected objects that can communicate with each other. This connectivity creates new opportunities for data analysis and insights. With the right analytics tools, businesses can gain insights into customer behaviour, operational performance, and product usage patterns. This data can be used to improve decision-making and drive business growth. - Cybersecurity:
Finally, with more devices and sensors connected to the internet, there is a greater risk of cyber-attacks and data breaches. Security measures need to be put in place to protect data and devices from unauthorised access. This requires a robust security strategy that includes encryption, access controls, and monitoring tools.
Conclustion
In conclusion, the IoT is changing connectivity for businesses in significant ways. It is enabling automation, creating new revenue streams, providing new insights into customer behaviour and operational performance, and creating new security challenges. As an IT manager, it is essential to understand the potential of the IoT and the challenges it presents. By developing a comprehensive IoT strategy, businesses can take advantage of the benefits of this technology while mitigating the risks.
9X5 joins NSW ICT Services Scheme Panel