“Labor chooses a stronger, smarter and fairer Australia,” declared Treasurer Wayne Swan, introducing his sixth – and probably last – Federal Budget last night. But his Budget speech in fact contained few major initiatives for developing a “smarter” Australia.
Swan made little mention of any major plans to address the specific ICT skills shortage, one of the six “Smart ICT” planks urged on the Government in the run-up to the Budget by the Australian Information Industry Association (CDN, May 3).
However the Government has – as previously announced – agreed to pump $350 million into an Innovation Investment Fund to stimulate venture capital investment in start-ups, along with changes to tax concession arrangements to encourage “angel” investor syndicate. (Start-up funding was another AIIA SmartICT plan.)
And on the income, rather than spending side, Swan signaled a crackdown on business tax procedures, including tightening the rules on “profit shifting” – an issue where Google and Apple have already felt ATO-inflicted pain.
The pain looks likely to spread to more IT companies, among others, who use tax avoidance procedures like the infamous “double Irish-Dutch sandwich” to move taxable profits to other countries.
Robert Hillard, technology agenda managing partner for Deloitte Consulting said the consultancy was pleased that the Government had recognised importance of the digital economy with a $7.2 million three-year program to help business engage in this rapidly growing sector.
“However, given that digital is now worth more than $50 billion, the only sustainable way to protect our tax base is to invest far more in ensuring that more of the activity occurs here rather than in other jurisdictions,” he added.
He applauded a $10m “Keeping Seniors Connected” program, but said the Budget contained little beyond the NBN to “redefine delivery of services through government or use the enormous buying power of government in ICT to springboard new capabilities in Australia.”
Ovum analyst Kevin Noonan declared it overall a “very sound” Budget within the current strained circumstances, with a number of IT-angled initiatives buried in the fine print.
They include an AGIMO project costing $58 million over four years to improve procurement savings across multiple portfolios.
‘Innovation precincts’ on way
He also noted that several departments, including the ATO and the Department of Human Services will be funded to improve fraud detection measures via IT.
While direct action on measures to increase the flow of skilled ICT workers was notably absent from the Budget speech, Noonan noted several measures that could contribute. They include provision of $238 million to establish five “industry innovation precincts” aimed at bringing organisations together on innovatory projects.
They will be linked by an Internet-based Industry Innovation Network, and precincts will be able to bid for some of $50 million in funding for large-scale high-impact industry collaboration projects.
The Government has also set aside $68 million for a “four-year industry-led pilot program to trial new training pathways into high-demand trade and technical occupations” It’s dubbed Alterative Pathways, but it’s not clear whether it will include ITC training.
Squeezing more workers in
There’s also $45 million for a new Skills Connect Fund that is claimed to offer industry with a single point of access for skills and workforce development support.
Wryly, Noonan noted the Public Service intends to make savings by stacking people more tightly within government buildings. It plans to provide an average 14 sq. m per worker, down from the current 16 sq. m. Seriously, he says, it probably reflects the increased numbers of public servants doing at least some telecommuting.)
Among other measures announced in the Budget:
– Stephen Conroy’s Department of Broadband, Communications and the Digital Economy has been allotted an extra $12.9 million for “expert digital training” of small businesses, NFP organisations and local councils to come up with projects that make good use of the NBN.
– DBCDE says it will achieve saving of $4.5 million over three years by not proceeding with its controversial mandatory Internet filtering program.
– The Government will provide $19 million over five years to increase the size of its National Telepresence System linking government offices round the nation with video conferencing facilities.
