The government has announced significant investments in tech in this year’s federal budget, reflecting the importance of bolstering cyber security and growing the nation’s digital capabilities. The intentions of the investments are threefold: to increase and develop critical, innovative technology in business and beyond; to strength cyber security and threat detection within the government and in businesses; and to respond to the workforce shortage across Australia in the technology space.
So, what were the tech investments announced in the 2022 federal budget – and what are the new opportunities for enterprise organisations as a result? Let’s take a look.
What is the federal government spending money on?
Here are the headlines:
• $1 billion in tech related tax incentives for SME businesses
• $9.9 billion in improvements in Australia’s offensive and defensive cyber capabilities
• $30.2 million to increase cyber services for Australian agencies with Cyber Hubs
• $18.6 million for digital and data training in regional Australia
• $3.9 million for supporting women through careers in STEM
What does the investment in tech mean for Australian enterprises?
Tax boost for tech means faster business growth
Businesses with a turnover of $50 million or less will have access to some significant tax boosts. You’ll be able to deduct an extra 20% of business expenses related to the adoption of digital enhancements and uptake. Claiming this deduction will be possible for up to $100,000 of expenditure every year, and includes (but is not limited to) major investments in:
• Cloud migration
• Business networks
• Collaboration tools
As well as the tax break you’ll get when you invest in these areas, there are also huge benefits for the performance of your business. Tailored technology infrastructures breeds flexibility, efficiency, and productivity – not to mention the added security for your data. With the new tax benefits, you’re able to devote more time and expense to upgrading your business technology in a way that suits your needs and supports your growth.
Incentives for tech training to help you build a strong cyber security culture
A 20% deduction has also been announced for funds spent on training courses for employees, helping you create a more informed workforce and a strong cyber security culture. This type of training means your people can begin to identify potential threats before they become a real problem.
Improvements in cyber security will lead to better protection for your business
The $9.9 million allocated to strengthening Australia’s cyber security protection will primarily be used in an initiative called Project REDSPICE (Resilience, Effects, Defence, Space, Intelligence, Cyber and Enablers). This will involve increasing the size of the intelligence agency, Australian Signals Directorate (ASD) and improving its capabilities in cyber threat detection and response.
Similarly, a portion of the budget is devoted to the federal government’s own security, with $30.2 million allocated to the set-up of Cyber Hubs within smaller agencies like Home Affairs and Services Australia, and the ATO.
This boosting of cyber security capabilities indicates a shift in culture for Australian tech. The government’s commitment demonstrates just how important cyber security is, and we predict this will trickle down and influence the enterprise space to make more advanced cyber defences accessible.
Investment in regional training and developing women increases recruitment pool
Australia has major shortages of women in technology, who make up 25% of cyber workplaces. This year’s budget aims to remedy this. $3.9 million has been allocated to help school leavers and mid-career women make their way in the tech world, and other initiatives are in place to support women in STEM.
Likewise, people residing in regional areas can often miss out on the same level of training and expertise awarded to more central locations. The government will be funding initiatives aiming to provide digital and data training to people in these areas, and provide them with opportunities to follow careers in this space.
As more and more people become adept in the world of technology, this allows a larger pool of talent that your company can choose from when hiring in technology departments. These candidates will have access to the latest and greatest insights, and can bring new perspectives on how technology helps business growth while addressing your specific needs.
Rubicon 8 can help you make the most of it
Partnering with Rubicon 8 can help you get you across your cyber security. With tax deductible technology solutions now available, and we’ll help you identify the solutions that generate the best returns for your business. Get in touch today to see what we can do for you.