BUDGET REACTION – The Tech Council of Australia (TCA) has welcomed Federal Budget initiatives designed to boost investment in innovative industries, improve the tech workforce pipeline and accelerate digital transformation of government. However, the TCA said there was “still more to do to lift Australia’s productivity growth”.

“Australia’s tech sector is vital to the future of our economy and job creation, which is why we’re pleased to see some important new investments announced in this Budget,” TCA acting CEO Ryan Black said.

“The Federal Government has injected funding into some major priorities for the tech sector, including AI, migration, digital ID and tech workforce diversity, while also making some substantial investments in future high-tech industries.

“We welcome measures to invest in safe and responsible AI, while continuing to encourage the government to develop a comprehensive plan to drive AI development and adoption across the economy,” Mr Black said.

“Importantly, this year’s Budget builds on existing flagship initiatives like the National Reconstruction Fund and Industry Growth Program, through which we hope to see funding roll out to the tech sector as soon as possible this year.”
 
The Tech Council has been a strong advocate of the Federal Government’s migration strategy and singled out investment in migration reform, as well as other workforce initiatives such as improving diversity in STEM, as major priorities in its pre-Budget submission this year.
 
“Australian tech businesses continue to face challenges with attracting the best and brightest talent to our shores due to an outdated, slow and unresponsive migration system,” Mr Black said.
 
“The government’s migration reforms, including the announcement of a refreshed National Innovation Visa as part of the permanent migration program, will give tech companies more ability to scale, innovate and compete on the global stage.
 
“The additional $38.2 million to improve diversity in STEM is a meaningful investment in building a more diverse and inclusive tech workforce,” he said.

“We look forward to continuing to work with the government on the design and implementation of a digital apprenticeships model, which will open pathways for more Australians into the tech sector.”
 
The Federal Budget also includes some major new investments to support innovation and high-tech industries through the Made in Australia initiative and other programs.
 
“We agree there’s an important role for government in driving more co-investment into innovation and advanced industries where Australia has clear strengths,” Mr Black said.

“This is about investing in the future of our economy and our security, while ensuring we continue to create more high-skilled, high-paid jobs.

“Private investment will continue to do much of the heavy lifting here, which is why we’re pleased to see the Government prioritise FIRB (Foreign Investment Review Board) reforms and a commitment to develop a ‘single front door’ to attract and facilitate major investment proposals in Australia.
 
“Quantum (computing) is an area where we have huge potential to create a multibillion-dollar industry and thousands of jobs. Following the significant investment in this Budget, we urge the government to move quickly to inject more direct funding in Australia’s quantum businesses and research organisations to take advantage of our world-leading quantum capabilities.”
 
The Budget includes significant commitments to accelerate the digital transformation of government, including through digital ID and myGov enhancements.   
 
“Australia has made significant progress on digital transformation, but it’s important that government service delivery keeps pace with growing consumer expectations,” Mr Black said. 
 
“Digital ID and digital credentials are crucial for enhancing privacy, security, productivity and customer experience.
 
“More funding for myGov is also important to ensure a world-class and inclusive experience for all Australians and reflect its status as critical national infrastructure.”
 
The Tech Council also supports the additional funding provided in the Budget for the Department of Defence’s export controls function, which will help ensure new reforms are implemented as efficiently as possible for industry.
 
“We will continue to review the details of the Budget and engage with our members on the announcements from the government to understand the full implications for the tech sector,” Mr Black said.

www.techcouncil.com.au

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BUDGET REACTION – HESTA has welcomed key measures in the latest Federal Budget, including funding to pay super on the Commonwealth Parental Leave Pay scheme, cost-of-living relief, and support to encourage investment in Australia’s energy transition.

HESTA CEO Debby Blakey said the 2024-25 Budget was good news for women, with measures to improve their retirement outcomes, increase wages in female-dominated industries and ease cost-of-living pressures.

“Many of our members are typically lower paid and facing increased pressure on household budgets as the cost of basic necessities has increased,” Ms Blakey said.

“Cost-of-living relief measures are welcome, and it’s fantastic to see the long-awaited allocation of funding for paying super on paid parental leave. This is a great investment in the financial future of women across Australia that will narrow the gender super gap, all the while sending a clear message that unpaid caring work is valued.” 

Following over a decade of advocacy from HESTA and others, the Federal Government in March this year announced super will be paid on the Commonwealth Parental Leave Pay Scheme from July 1, 2025.

Ms Blakey said for members still working, the stage three tax cuts, due also to come into effect on July 1, would ease the pressure on household budgets. For those in retirement, Ms Blakey also welcomed the announcement that the government would freeze deeming rates at current levels for another year, benefiting members accessing the age pension.

The tax changes, however, brought into focus the need for the more equitable targeting of superannuation tax concessions to help boost retirement savings for women and lower-income earners.

Ms Blakey said increasing the maximum income eligibility for the Low-Income Super Tax Offset (LISTO) from $37,000 per annum to the top of the second income tax threshold, and aligning the offset with the Super Guarantee, was a non-inflationary measure that would help make a difference to the retirement savings of women and low-income earners.

“It’s unfair low-income earners, many of whom are women, continue to pay more tax on their super contributions than their wages. That’s why we want to see the LISTO updated to reflect current tax and super settings,” Ms Blakey said.

“Reform to pay super on paid parental leave was a fantastic step forward for women’s financial security in retirement, but there’s still work to do to close the gender super gap and create a fairer super system for everyone.”

Ms Blakey also welcomed the Federal Budget’s focus on supporting Australia’s energy transition. The government has committed $22.7 billion over the next decade with a focus on new industries including renewable hydrogen, critical minerals processing, green metals, low-carbon liquid fuels and cleaner energy manufacturing.

“We need to accelerate the transition to clean energy and away from fossil fuels, as this can help mitigate climate change-related risks to our members’ retirement savings, and create new investment opportunities,” she said.

“The nationwide exploration of future-facing commodities, so vital for the energy transition, is a crucial step towards scaling up mining operations, strengthening supply chains, and helping Australia meet its net zero carbon emissions target.”

Budget funding to jump-start large decarbonisation projects was also welcomed, with HESTA having already committed to investing 10 percent of its portfolio in climate solutions by 2030.

Ms Blakey also commended Budget measures to support HESTA members, who are predominately women in health and community services.

These included funding provisions for the aged care and early childhood education wage increases, more flexibility for carers, and $320-a-week ‘prac payment’ for nursing, teaching, midwifery and social work students.

“HESTA members are mainly women who spend their lives providing critical care for communities in typically lower-paid roles such as nurses, midwives and aged care and early childhood education professionals, and often take unpaid time away from work to look after others,” Ms Blakey said.

“These professionals already face significant hurdles in achieving financial security in retirement, so it’s encouraging to see this year’s Budget provide targeted cost-of-living relief and support for many of our members.”

www.hesta.com.au

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BUDGET REACTION – The Federal Budget has failed to address the ongoing health care inequity between rural and urban Australia according to the National Rural Health Alliance.

“The Budget falls short of our expectations,” National Rural Health Alliance chairperson, Nicole O’Reilly said. “It is disheartening to observe the government's lack of responsiveness to rural voices and its failure to commit to comprehensive reforms that would offer sustainable and long-term benefits for rural communities.”

The further an Australian lives from an urban centre, the lower their life expectancy. That is a fact raised often by the National Rural Health Alliance.

Ms O’Reilly said rural people are also twice as likely to die from preventable illness. Rural men are 2.5 times and women 2.8 times more likely to die from potentially avoidable causes than those in urban areas. 

She said many rural people had no access to primary healthcare services within an hour’s drive from their home. They use Medicare up to 50 percent less than those in cities, showing that people would rather not make the long journey or wait long hours to access health care somewhere else. As a result, the burden of disease in remote areas is 1.4 times than that of major cities.

“Evidence is clear that per-person spending on healthcare is not equitable,” Ms O’Reilly said. “We know from the Evidence base for additional investment in rural health in Australia (report) that each person in rural and remote Australia is missing out on nearly $850 per year of healthcare access equating to a total annual rural health underspend of $6.5 billion.

“Funding could have enabled rural Australians to access health and medical services in their local communities. We call on the government to make a better commitment at the next opportunity to ensure that our rural communities are looked after,” Ms O’Reilly said.

“The National Rural Health Alliance welcomes the commitment to support rural training opportunities. The establishment of the Charles Darwin University Menzies Medical Program which aims to educate home grown doctors is vital for growing the next generation of rural doctors. We acknowledge the new Commonwealth Prac Payment and the opportunity it will provide to support students to experience rural based clinical placements.

“We are also pleased to see the Royal Flying Doctors Service supported with top up finding to deal with the increasing costs of service delivery of vital services they provide to rural communities. But their model is only one that addresses the vast variety of health care needs across rural and remote Australia. There are many struggling rural and remote primary health care services that are on the brink of closure and need support and significant reform.

“There is much more to be done to address the inequity in health care outcomes for rural and remote Australians,” Ms O’Reilly said.

She said the National Rural Health Alliance (the Alliance) comprises 51 national organisations committed to improving the health and wellbeing of the over 7 million people in rural and remote Australia. Our diverse membership includes representation from the Aboriginal and Torres Strait Islander health sector, health professional organisations, health service providers, health educators and students.

www.ruralhealth.org.au

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