This year’s Budget has a strong focus on investing in Australia’s broadband and telecommunications capabilities. $2.4 billion will be invested in the NBN, whilst a further $1.2 billion will be applied towards regional telecommunications. The Government has also announced initiatives to boost digital literacy and technology training for workers in tech-related industries, and has clarified the income tax treatment of cryptocurrencies.
National Broadband Network
The Government has announced its intention to invest $2.4 billion in NBN Co to extend full-fibre access to 1.5 million additional premises, including to over 660,000 in regional Australia. Up to 30,000 families will receive 12 months free broadband through this initiative, which will help unconnected students access broadband and boosting their education opportunities.
The Government will also provide $4.7 million over 3 years from 2022–23 to support the delivery of free broadband for up to 30,000 unconnected families with school aged students during the 2023 calendar year.
Telecommunications
An investment of $1.2 billion will be made by the Federal Government to further advance regional telecommunications, consistent with findings from the 2021 Regional Telecommunications Review. Funding will improve coverage in communities and support multi-carrier coverage along major roads, improve telecommunications resilience and collect data to inform future investment.
The Government will also provide $757.7 million over 5 years from 2022–23 to improve mobile and broadband connectivity and resilience in rural and regional Australia, including:
- $400.0 million over 5 years from 2022–23 to support the roll out of mobile base stations to improve highway and underserviced community mobile coverage;
- $200.0 million over 5 years from 2022–23 for two additional rounds of the Regional Connectivity Program to fund the delivery of telecommunications infrastructure to improve digital connectivity in regional, rural and remote Australia;
- $40.0 million over 3 years from 2022–23 for an improving mobile coverage round of the Mobile Black Spot Program to implement commitments for new mobile infrastructure to improve mobile coverage and reception quality across Australia;
- $39.1 million over 5 years from 2022–23 for two additional rounds of the Peri-Urban Mobile Program to improve mobile reception in peri-urban areas that are prone to natural disasters; and
- $30.0 million over 5 years from 2022–23 for the On Farm Connectivity Program to support farmers and agricultural businesses to purchase and install on farm connectivity equipment.
Cyber Security
The Government will provide $31.3 million in 2022–23 to extend the whole of government Cyber Hubs pilot while an evaluation is completed. The pilot is trialling a whole of government approach, utilising 4 Cyber Hubs, to deliver cyber security capabilities to Commonwealth entities.
The Government will also provide $12.6 million to combat scams and online fraud to protect Australians from financial harm.
Budget savings under the digital economy strategy
The Government will improve quality of spending by redirecting funding from under-performing programs. This includes savings of $3.9 million over two years from 2022–23 by not proceeding with the Supporting Women’s Mid-Career Transition into the Tech Workforce component of the 2022–23 March Budget.
Clarification surrounding taxation of cryptocurrencies
The Government will introduce legislation to clarify that digital currencies (such as Bitcoin) continue to be excluded from the Australian income tax treatment of foreign currency. This maintains the current tax treatment of digital currencies, including the capital gains tax treatment where they are held as an investment. This measure removes uncertainty following the decision of the Government of El Salvador to adopt Bitcoin as legal tender and will be backdated to income years that include 1 July 2021.
Investment in digital skills and training
The 2022–23 Budget aims to deliver on the outcomes from September’s Jobs and Skills Summit, including:
- $11.5 million over four years to establish the APS Digital Traineeship Program, which will support new digital career opportunities in the Australian Public Service. Priority groups such as First Nations people will be supported to undertake a Certificate IV qualification in digital or technology related fields; and
- A Digital and Tech Skills Compact, implemented in partnership with businesses, unions and training providers, that will develop options for a ‘digital apprenticeships’ model to support entry level tech workers to earn while they learn.
The Government has also announced A $50 million TAFE Technology Fund to modernise TAFEs.
Our experts, industry leaders, regulators and government explored key digital and cyber trends, regulatory insights and more at the KWM Digital Future Summit in November 2022. Read our takeaways or watch it on-demand here.
