Technology industry has mixed reaction to Budget 2025

The Federal Budget 2025 is out, with Treasurer Jim Chalmers having the unenviable task of trying to please Australian voters and businesses who are looking for relief from cost of living pressures, and economic dark clouds gathering mainly in the United States.

A sample of reactions from technology vendors and related organisations suggests Labor's Budget with modest tax cuts and other initiatives is generally welcomed, but not completely.

On the topic of taxes, the Australian Computer Society (ACS) welcomed the cuts introduced in Budget 2025, saying they will benefit thousands of professionals in the technology and computing sectors.

“As the Australian digital economy grows, ensuring ICT professionals are fairly supported financially is critical," ACS chief executive Josh Griggs said.

"These measures will enable tech professionals to invest more in their careers, upskill, and contribute to Australia’s growing technology sector," Griggs added.

ACS is however concerned that Australia is not positioning itself to take advantage of the major changes artificial intelligence offers to the economy, the society added.

Security vendor WatchGuard also weighed in on Budget 2025.

“It’s encouraging that the Government continues its commitment to small businesses, with over $60 million allocated since the 2023–24 Budget to the Digital Solutions program, Cyber Wardens, Small Business Cyber Resilience Service and Cyber Health Check," WatchGuard ANZ regional director Anthony Daniel said.

Another industry body, the Tech Council of Australia (TCA) said it was disappointed that no explicit tech sector investment was included in the package of budget measures.

"This is a missed opportunity to buidl our national competitiveness, at a time of domestic productivity decline, and of critical global trade volatility," the TCA said.

TCA would like the government and the opposition parties to formalise support of the council's Tech Investment Target, to expand both research and developent investment, and technology adoption, to comprise 4.6 per cent of Australia's share of gross domestic product within the next decade.

Data management and backup vendor Cohesity's managing director for Australia and New Zealand, Paul Henaghan, said it was encouring to see the government has recognised the importance of investment in creating a greender future in the federal budget.

"Sustainability measures are no longer an optional feature as consumers are also increasingly expecting organisations to align with a more sustainable operating model," Henaghan said.

"Hence, as part of their sustainability efforts, organisations need to focus on reducing the amount of energy they use whilst maintaining critical cybersecurity and operational functions," he added.

Kylie Walker, chief executive of the Australian Academy of Technological Sciences and Engineering (ATSE) welcomed investments in key science and technology infrastructure and workforce.

This, Walker said, provides "crucial ongoing support for the national research and development agency CSIRO, and in the areas of nuclear medicine, biosecurity and the National Measurement Institute."

ATSE continues to call for further bipartisan investment in science, technology and innovation to safeguard Australia's economy in the future.

The Business Council of Australia (BCA) chief executive Bran Black told ABC Radio National's Breakfast show that the Budget contains positive measures; ultimately, it fails to grow the pie however. 

BCA has been arguing for deregulation and measures such as streamlined planning approval processes, particularly at the federal level.

Productivity remains a concern for BCA.

The budget is good for workers, the Australian Council of Trade Unions said, particularly with wages going up, taxes going down and non-compete clauses that affect three million people disappearing.

The Big Four professional services companies were naturally keeping a close eye on Budget 2025, with KPMG saying it does not contain any new funding for investment in important, emerging technology fields.

That includes AI and quantum technologies, KPMG said. 

Digital transformation initiatives will see decreased spending as well, unlike previous years, KPMG added, as the government is erring on the side caution with investment.

Government aged care and health systems will see more investment to enhance them,  however, with over $930 million being spent.