Australia snubs Bitcoin and other tech as budget week ends in disappointment

Australia has surprisingly snubbed Bitcoin and other tech in its budget as the whole excitement came crashing down disappointingly. While most countries are gravitating towards Bitcoin and other technologies, the lack of a mention left Australians with dismay.

In the week before the Treasurer’s speech on Tuesday and the traditional Thursday night sequel from opposition leader Peter Dutton, expectations were not high about a change in the budget. Both parties had been talking about the technology industry for a while with topics like how to capitalize on the AI boom, protecting Australians from scams, and cracking down on cybercrime among others.

Nevertheless, most of the concerned parties understood that there would be a sense of realism in their pre-election budget. For instance, they needed to talk about things that would sway voters to their side like tax cuts or energy prices. While the expectations were quite low, the budget week still managed to surprise most, while worrying even the most devoted realist in the tech industry.

Australia’s parties cuts Bitcoin and other tech in budget

One of the core notes to mention is that tech was not a winner in the Labor Party budget. The budget did not exactly make any major cuts in other aspects, so one cannot say it was downright bad. More accurately, the party ignored tech and vaguely mentioned aspects like AI, cybersecurity, quantum, and online safety. In addition, no new spending was allocated to the aspects that were mentioned in the budget.

Opposition leader Peter Dutton also followed the same path two days later, albeit with a greater vague mention of tech in his budget. Dutton promised to encourage new areas of the economy, including areas like artificial intelligence (AI), automation, space, cybersecurity, nanotechnology, and biotechnology without a clear explanation of how to achieve it.

The biggest complaint about the budgets is the failings in acknowledging artificial intelligence, with none of them discussing how to boost the technology or make it safe for Australians. Electronic Frontiers Australia (EFA) chairman John Pane showed his disappointment towards the budget. “Australia remains the last signatory [to the Seoul AI Summit Declaration] to stand up an AI Safety body or regulator,” Pane said.

Many were waiting for an update on the AI Safety Institute that the country promised to establish in May 2024, but were left disappointed when it was not mentioned. It is also quite concerning that the country has yet to release its plan for AI regulation, let alone implement it. Minister for Science and Industry Ed Husic mentioned in January that the government was on the verge of rolling out its AI regulation, but has gone quiet on the issue since then.

Quantum computing and other sectors also miss out

AI was not the only sector that was ignored by the budget, with quantum computing not even seeing as much as a mention. In addition, there was no mention of any spending on the government’s flagship tech policies, the teen social media ban, or the news media bargaining incentive (known as the tech tax). Cybersecurity was only mentioned about previous spending, with $60 million used to help small businesses protect themselves from data breaches.

Cyber Director at cybersecurity firm NSB Cyber, Evan Vougdis, showed his dismay towards the budget and its lack of note on cybersecurity. “The Federal Budget for 2025 treats cybersecurity as background noise,” he said. He also added that the government needs to change its approach and take more decisive actions in the sector.

Another big loser in tech is the research and development (R&D) space. Mr Husic noted that Australia’s investment in R&D had been plummeting last month, noting that the trend must stop. But the budget released this week showed that the government would wind back tax breaks for R&D by $640 million in the next four years.

A spokesperson for Husic also mentioned that the federal government has made core investments in the tech sector, noting the $500 million earmarked for PsiQuantum to build the world’s first quantum computer in Brisbane which was announced last year. “In just the last few weeks, our $15 billion National Reconstruction Fund has invested almost $100m in world-leading Australian tech companies across quantum, AI and cybersecurity,” the spokesperson said.

The spokesperson also earmarked the feat the government hopes to achieve in the next five years in the tech sector. “We have spent our first term laying the foundation for a thriving tech sector, setting a target of 1.2 million tech jobs by 2030, establishing first national strategies for robotics and quantum,” the spokesperson added.

Funding for key regulators restored after last year’s cuts

One of the reliefs in the budget was the restoration of funding for the regulator, the Office of the Australian Information Commissioner (OIAC). The Privacy Commissioner had previously taken action against AI facial recognition company Clearview. The commissioner accused the company of privacy breaches. Actions were also taken against social media firm Meta over the Cambridge Analytica scandal.

The regulator suffered an $11.1 million cut in the last budget, leading to the loss of 35 full-time staff amid a more targeted approach to enforcement. The current budget restored much of the cut budget, promising to provide $8.7 million in three years to support enforcement actions, $5.3 million to facilitate Digital ID and Identity Verification Service programs, and $2.3 million to carry out oversight of My Health record starting from 2025.

Funding for the government’s online safety regulator, the Office of the eSafety Commissioner remained static, with some minor cuts expected to happen in some years to come. While it remains to be seen what both parties will likely sway voters with after their tech snub, the sector and those concerned will be anticipating new funding for the sector during the campaign before the election on May 3. However, after this week, the low expectations are now sinking.

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