The Australian Government released its Federal Budget on the 29th of March 2022, along with its Digital Economy Strategy 2022 Update.
While the Budget itself focuses on several reliefs granted to SMEs (small and medium-sized enterprises)—like the Skills and Training Boost, which will deduct an additional 20% of the expenditure incurred on external training for
employees—what was even more significant was the Technology Investment Boost, announced in the Digital Economy Strategy 2022 Update.
The Strategy, released with the 2021-22 Budget, sets the framework for, and Australia’s direction to achieve, its 2030 vision.
But what do the changes it brings mean for SMEs in 2022 and beyond? Let’s break it down from the beginning.
What is the Australian Digital Strategy?
The Australian Government is on a mission to revitalise its economy with digitalisation, investing in the infrastructure, and offering the right incentives to grow the country’s digital economy.
Australia is by no means new to digital technologies. Technology and automation have been a massive part of the country’s activities since the Government first launched the Digital Economy Strategy with the 2021-22 Budget.
These efforts were further encouraged by the citizens embracing innovation with enthusiasm as a result of its necessity during the first waves of the COVID-19 pandemic.
In fact, the increased digital uptake supported the nation’s businesses to continue and grow during a global crisis.
Moving beyond 2022, this strategy set the vision for a digital Australia, working toward catapulting the country to the status of a top 10 digital economy and society by 2030.
What changes have already happened and what can we expect in the future?
This new vision focuses on several key areas of digital transformation.
According to Senator Hon. Jane Hume, Australian Minister for Superannuation, Financial Services and the Digital Economy and Minister for Women’s Economic Security, the Strategy focuses on supporting consumers to make informed decisions and helping businesses adapt to changing needs.
It also aims to create an economy that encourages innovation and the development of skills and creativity.
Over the past 12 months, the Government has taken several steps toward these goals. Some of these include:
- Launching the National Artificial Intelligence Centre with CSIRO’s
(The Commonwealth Scientific and Industrial Research Organisation) Data61 as part of the AI Action Plan - Expanding the Consumer Data Right across the economy
- Releasing the Digital Readiness Assessment Tool to support the digitalisation of small businesses
- Uptaking the Skill Finder initiative
The Update, released in 2022, outlines new measures taken since the Strategy’s launch that continue the journey towards achieving the 2030 vision.
What is the 2022 Update?
When the Australian Digital Strategy launched last year, it included a significant investment of $1.2 billion in the digital economy. Another $347 million has been added over the last year, further strengthening the investment in the digital economy.
The Strategy Update offers insight into the progress made on these investments and their benefits to Australian business owners.
The 2022 Update also sheds light on new actions initiated under the strategy like:
- Keeping Australians safe and secure online
- $22.6 million to further support 5G innovation
- $1 billion for the Technology Investment Boost
- Reforming Australia’s payment system for the digital age
- $70 million to establish a Quantum Commercialisation Hub
- $3.9 million to help women transition mid-career to the digital workforce
What does your business stand to gain with the Technology Investment Boost?
Of the many steps taken by the government to improve the experience of SMEs, the Technology Investment Boost is by far the most significant.
With this boost, Australian businesses that wish to upgrade their digital skills and equipment are to receive $1.6 billion in tax relief.
Small businesses with an annual turnover of less than $50 million will be able to deduct an extra 20% of the cost of workplace expenses incurred in their digital uptake.
This Technology Investment Boost will apply to any purchases made between
7.30 pm, March 29, 2022, and June 30, 2023.
Responding to global changes by embracing opportunities
‘Australia’s prosperity and security depend upon us embracing these opportunities and having the flexibility to respond as the world around us changes.’
– Senator Jane Hume
Digitalisation has become a necessity in the modern market, and a country’s economy depends on its willingness to adopt these new trends and technologies.
As the challenges and uncertainties of the COVID-19 pandemic continue, digital uptake and transformation support businesses to stay afloat and carve out new specialisations in the face of every crisis.
If you’re looking to take the step towards digital operations, the time is right to make that transformation. Schedule a free consultation with Launchy experts for hands-on, customised guidance on how you can both embrace technology and make it your own.