A big winner was prolific start-up investor Main Sequence Ventures, the venture capital arm of the CSIRO. It was awarded an extra $150 million in equity funding over the next five years.
SaaS providers a winner, but no talent plan
“The technology investment boost should drive domestic demand for SaaS (software as a service) and cloud technology, which is critical to help local start-ups win their first customers,” founder and CEO of Local Measure Jonathan Barouch said.
“A 20 per cent additional deduction might accelerate a business case to take the leap [to the cloud] – which benefits the small and medium business and also gives local tech companies like Local Measure more domestic opportunities.”
Mr Barouch also said pre-announced changes to enable start-ups to offer staff much bigger share incentives and bonuses would make local companies more internationally competitive for talent, but was disappointed that no measures to encourage skilled migration to Australia were included to alleviate the skills shortage.
This was a complaint of numerous tech operators who spoke to The Australian Financial Review.
Lachlan Feeney, founder and executive director at blockchain consultancy Labrys, said the budget seemed to offer no solutions to immediately solve the tech talent shortage, and completely ignored the fast-developing blockchain industry.
“Simply reopening international borders and expecting skilled workers to come flocking into Australia is naive,” he said. “The government must make skilled technology visas more accessible, affordable and appealing.”
Cath Whitaker, CEO of ASX-listed fintech and digital brokerage platform SelfWealth, agreed the government had failed to lay out a “bold vision” for enticing tech talent.
“We’ve gone from being a land of open plains to one of vacant lots, empty start-up hubs and CBD offices across urban centres coming to grips with talent shortages, and more and more of our best tech talent looking abroad for opportunities,” she said.
Cath Whitaker, CEO of SelfWealth, says the budget missed an opportunity to lay out a vision for enticing tech talent to Australia. Dan Peled
“Mounting pressures have been put on tech salaries, and it’s setting up this two-tier economy that Australian small businesses and start-ups aren’t keeping pace with, in the battle for global tech talent.”
Andrew Porter, the CEO of industry lobby group Fintech Australia, said the failure to properly address the tech skills shortage had made budget night a “grim” one for the sector.
Referencing Labor’s plan to base its tech skills policy on education, he said neither side were offering answers to an immediate problem.
“After years of close work with the federal government, it’s a shame to see that the fintech industry failed to have really any of its key matters addressed in this budget,” Mr Porter said.
Cyber spending
Ajay Unni, founder of StickmanCyber, a business that helps companies mitigate their cybersecurity risks, said the big increase in cyber defence spending was unsurprising, given the increasing number of cyberattacks targeting Australia.
Ajay Unni, founder of StickmanCyber, welcomed incentives for investment, but warned it could be misspent.
Under budget measures, every $100 that small businesses spend on cybersecurity, they will receive a $120 tax deduction, which Mr Unni said would undoubtedly be good for providers.
But he warned there was a risk businesses would waste the money on unsuitable products.
“Without helpful mandates or more defined guidance on how the funds can be used … businesses are playing with fire,” he said.
“Downloading new anti-virus software isn’t going to cut it.”
AirTree Ventures partner James Cameron said the biggest win for the local tech sector had come in the employee share scheme changes.
“It’s a real shame it’s taken so bloody long, though. Start-up leaders have been crying out for these changes for more than a decade now,” he said.
