Australia Surprises by Neglecting Bitcoin and Other Technologies in Budget
Australia has surprisingly sidelined Bitcoin and other technologies in its budget, leaving much of the excitement disappointing. While most countries are embracing Bitcoin and other technologies, the lack of mention has frustrated Australians.
Expectations for changes in the budget were low ahead of the Treasurer’s speech on Tuesday and the traditional sequel from opposition leader Peter Dutton the week prior. Both parties have been discussing topics concerning the tech industry for some time, such as how to leverage AI for prosperity, protect Australians from scams, and combat cybercrime.
However, most stakeholders are aware of the reality that there will be a budget before the elections. For example, they need to discuss matters that sway voters to their side, such as tax cuts or energy prices. Despite the low expectations, budget week managed to be surprisingly revealing, even worrying the most dedicated realists in the tech industry.
Australian Parties Cut Bitcoin and Other Technologies from Budget
One of the core notes to mention is that technology was not a winner in the Labor budget. The budget did not completely cut any major allocations in other areas, so it cannot be said to be entirely negative. More accurately, the party ignored technology and vaguely mentioned areas such as AI, cybersecurity, quantum, and online safety. Furthermore, no new spending was allocated to the areas mentioned in the budget.
Two days later, opposition leader Peter Dutton also followed the same path, albeit with a more vague mention of technology in the budget. Dutton promised to encourage new economic sectors, including artificial intelligence (AI), automation, space, cybersecurity, nanotechnology, and biotechnology, without clearly explaining how to achieve this.
The biggest complaint regarding the budget is the failure to acknowledge AI, as they did not discuss how to enhance technology or make it safe for Australians. John Pane from the Australian Electronic Frontier (EFA) expressed disappointment with the budget, stating, “Australia remains the last signatory to the [Seoul AI Summit Declaration] to stand up for a regulatory body or agency for AI safety.”
Many have been waiting for the latest updates on the country’s commitment to establishing an AI Safety Institute by May 2024, but felt disappointed by its omission. Equally concerning is the fact that the country has yet to release its plans for AI regulations, let alone implement them. Science and Industry Minister Ed Husic mentioned in January that the government would soon unveil its AI regulations, but has since remained quiet on the matter.
Quantum Computing and Other Sectors Also Missed
AI is not the only sector neglected in the budget; quantum computing was not mentioned at all. Additionally, there was no mention of any expenditures related to the government’s flagship technology policies, youth social media bans, or media negotiation incentives (referred to as the tech tax). Cybersecurity was only referenced in relation to previous expenditures, with $60 million allocated to help small businesses protect themselves from data breaches.
Evan Vougdis, Cyber Director at cybersecurity firm NSB Networks, expressed his frustration with the budget and the lack of attention to cybersecurity. He stated, “The 2025 federal budget treats cybersecurity as background noise.” He added that the government needs to change its approach and take more decisive action in this sector.
Another major loser in technology is the research and development (R&D) sector. Mr. Husic noted that Australia’s investment in R&D has been plummeting over the past month, emphasizing that this trend must stop. However, the budget released this week indicates that the government will cut $640 million for R&D over the next four years.
A spokesperson for Husic also mentioned that the federal government has made core investments in the technology sector, highlighting $500 million for Psiquantum to build the world’s first quantum computer in Brisbane, announced last year. The spokesperson stated, “In recent weeks, our $15 billion National Reconstruction Fund has invested nearly $100 million in Australian tech companies focused on Quantum, AI, and cybersecurity.”
The spokesperson also outlined the government’s aspirations in the technology sector over the next five years. They added, “We have laid the groundwork in the first term for a thriving tech sector, setting a goal of 1.2 million tech jobs by 2030, and establishing the first robotics and quantum strategy.”
Restoration of Funding for Major Regulatory Agencies After Last Year’s Cuts
One of the highlights of the budget is the restoration of funding for regulatory agencies, specifically the Office of the Australian Information Commissioner (OAIC). The Privacy Commissioner had previously taken action against the AI facial recognition company Clearview, accusing it of violating privacy rights. Action was also taken against social media company Meta regarding the Cambridge Analytica scandal.
This regulatory agency saw cuts of $11.1 million in the last budget, resulting in a loss of 35 full-time staff in enforcement. The current budget restores most of the previous cuts, committing $8.7 million over three years to support enforcement actions, $5.3 million to promote digital ID and authentication service initiatives, and oversight of My Health Record starting in 2025.
The eSafety Commissioner’s office has been funded as the government’s online safety regulatory agency, which is expected to undergo some smaller cuts in the coming years. Whether both parties will still swing with voters after their tech responsibilities remains to be seen, but the industry and stakeholders will hope for new funding for the sector ahead of the election on May 3. However, following this week, lower expectations are declining.
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