$122 BILLION
is the amount that the tech sector contributes to the Australian economy today. As well as directly employing over half a million Australians, it underpins innovation and productivity growth in almost every other industry.
THE INDUSTRY’S CONTRIBUTION
The tech sector creates enormous value for households, SMEs, regional Australia and the wider economy.
SOURCE: AlphaBeta analysis 2019, UK Digital Efficiency Report 2012; Booz&Co Optimizing E-Health Value; MTAA 2011
$207 BILLION
is how much Australia could contribute per year to GDP by 2030, if we caught up with the growth rate of other leading countries internationally
AUSTRALIA’S GLOBAL STANDING
Today, Australia ranks second last — only to Mexico — for relative size of our technology sector.
THE IMMENSE OPPORTUNITY
AlphaBeta’s analysis reveals that growing Australia’s technology sector at the same rate as other leading countries would see Australia add $50 billion per year in GDP over the next 20 years, boosting GDP by 1.2-1.5%
WHAT WE NEED TO DO
Foster public-private partnerships
- Partnerships between industry, academia and government (e.g. ‘sector deals’1)
Foster tech start-up hubs - Open data initiatives
- Build links between universities and industry to commercialise innovative research
Skill the workforce of the future
- Increased availability of short-courses and upskilling for tech and digital skills
- Incorporate digital and entrepreneurial skills in the curriculum
- Specialised digital technology schools, academies and colleges
- Promote industry-based training
- Increase the uptake of women in digital and technology occupations
Incentivise innovation
- Tax incentives for commercial R&D, such as a ‘patent box’2
- Limit regulation on early stage innovations, such as a ‘regulatory sandbox’3
- Improved ability to claim digital and technology investments under R&D incentives
- Incorporate innovation as an objective under regulatory governance frameworks
Boost investment
- Improved ability to value intangibles as assets
- Incentivise early stage investment
- Hyper-depreciation4 of tech investments
Pragmatic regulation
- Limited intermediary liability
- International consistency in regulation
- Minimise regulatory burden
- Improved information and support for tech start-ups on regulatory requirements
- Limit restrictions on M&A of tech start-ups
- Limit data storage location restrictions
Improving access to talent
- Reform skilled migrant visas to more easily bring in talented tech workers
- Reduce barriers to offering employee share schemes
- Simple and accessible visa category for entrepreneurs