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Highlights
- The 2022 pre-election budget focuses on digital transformation and increased tax concessions for small businesses.
- The budget also promises AU$1 billion for a new technology investment boost and to encourage small businesses to embrace digital ways.
- The budget also promises an AU$9.9 billion investment in Australia’s offensive and defensive cyber capabilities, indicating the largest investment in Australia’s cyber preparedness.
The ongoing decade is believed to be a crucial period to determine which country becomes the leading digital economy. Australia has been looking to gain the lead and increase its self-reliance in the digital economy space, especially in the wake of COVID-19 and events in Ukraine.
The recent pre-election budget presented by the Morrison Government in the Australian Parliament is full of promises. One of the key features of the budget is its focus on rewarding small businesses that invest in skills and new technology.
Boosting Australia’s digital and cybersecurity capabilities
In a move that bolsters small businesses embracing digital revolution, Treasurer Josh Frydenberg’s 2022-23 Budget promises greater tax benefits for businesses that invest in digital skills training and technology. Moreover, the budget also includes the Government’s AU$1 billion allocation for a new Technology Investment Boost to persuade small businesses to embrace digital ways.
In his speech to the Australian Parliament on 29 March 2022, Josh Frydenberg stated that “From tonight, every hundred dollars these small businesses spend on digital technologies like cloud computing, eInvoicing, cyber security and web design will see them get an AU$120 tax deduction”.
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The Budget also focuses on fresh funding to drive cooperation between Australian universities, CSIRO and industry to expedite commercialising new technologies in clean energy, medical supplies, defence and other high-priority areas.
Besides this, the Government has also promised a AU$9.9 billion investment in the country’s offensive and defensive cyber capabilities to be spent over the decade. This massive investment in Australia’s cyber preparedness is aimed at boosting the country’s capacity to prevent and respond to cyber threats.
New Digital Economy Strategy in Budget 2021
The federal government Budget 2021 has outlined a new digital economy strategy, for which the Government has pledged nearly AU$1 billion. The strategy is a big-ticket tech item as the investment would lay the foundation for Australia to become a leading digital economy and society by 2030.
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The significant move from the Government comes as amid accelerated digital transformation catalysed by COVID-19 restrictions. Besides this, the budgetary allocation is also aimed to build on earlier commitments to back digitalisation through the Digital Business Plan in 2020-21, the Cyber Security Strategy, the NBN upgrade plan and the JobTrainer Fund.
Bottom Line
Economies across the globe have been racing to capture the significant economic and social opportunities delivered by various digital technologies. The Australian budget reflects the Government’s commitment to strengthen the economy through major investments and incentives for small businesses to foster a digital economy.
