Pre-budget announcements quiet on tech and startups this year
In contrast to the previous year, we’re going into the 2024 federal budget with less of an idea of what the startup and tech sectors can expect for them.
In the lead-up to the 2023-2024 federal budget, there was a flurry of tech-related announcements. Twelve months on, things are quieter. We’re going into tomorrow’s budget with less of an idea of what the startup and tech sectors can expect for them.
While the focus so far has been on tax cuts and cost of living relief, the tech sector hasn’t been entirely ignored. There have been a number of announcements attached to projects under the Future Made in Australia policy. And it’s followed last year’s trend of going hard on quantum.
The Albanese government’s National Quantum Strategy dominated the tech headlines in the weeks leading up to last year’s budget. The strategy was part of the $1 billion earmarked for Labor’s National Reconstruction Fund and, as the budget papers revealed, also included $101.2 million for small businesses integrating quantum and AI technologies into their operations.
While the 2024-25 budget announcements around the tech sector may not have been as prominent this year, the news cycle hasn’t exactly been devoid of quantum.
In late April, the federal and Queensland governments announced a joint $1 billion investment into PsiQuantum.
Founded in 2016 by Australian academics, PsiQuantum aims to develop the first commercially viable, fault-tolerant quantum computer. The investment will take the form of share purchases, grants, and loans.
PsiQuantum will also establish its regional headquarters in Brisbane as part of this deal.
The Psiquantum investment is part of the Future Made in Australia strategy — which focuses on advancing Australia’s capabilities in high-tech sectors — and is projected to create 400 new jobs, adding to the economic impact of the technology sector in the region.
Some of the other tech-focused projects under Future Made in Australia include:
- $1 billion for Solar Sunshot
- $566 million for GeoScience Australia
- $100 million for speedier environmental approvals for businesses
The Tech Council of Australia (TCA) has also touched on quantum computing in its pre-budget submission, invoking the National Quantum Strategy. The TCA advocated for increased focus on quantum technology commercialisation and adoption, including the upgrading of digital infrastructure critical for 5G development.
The TCA also suggested refining VC tax incentives to better suit the evolving tech investment landscape and is advocating for education reforms to help investors qualify as wholesale clients.
Considering the current economic climate, a budget focused on cost of living, taxes and healthcare is to be expected. While the tech and startup sectors don’t appear to be at the forefront of this year’s budgetary considerations, they continue to simmer on the policy backburner.
Still, we may emerge surprised come Tuesday evening. One never quite knows what could be nestled between the fat stacks of budget papers. SmartCompany will be in budget lockup in Canberra, so stay tuned for all of our SME and startup-related reports.
To see SmartCompany‘s full budget coverage, click here.
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