The Federal Budget released by the Australian Government yesterday is positive one for the IT industry, with “a welcome focus on strategic IT investment”, according to analyst firm Ovum.
Kevin Noonan, lead analyst, government IT at Ovum, said the government is moving to tackle problem areas neglected in previous years, including:
- $60.5 million to commence work on the welfare system replacement for Human Services. This is a massive task, replacing a 30 year old system still running on Model 204
- $234.7 million for business transformation at the Australian Bureau of Statistics. ABS had previously indicated that without a significant cash injection major statistical research work, including the coming national census, would have to be abandoned.
- $485.1 million to fix the troubled health electronic record system (PCEHR) with the renamed system MyHealth
- $295.8 million to strengthen national security capabilities for ASIS
- $164.8 million to strengthen and enhance the government’s border protection services
- $10 million to develop in house analytical, economics and research capabilities for Health.
The Government has also earmarked considerable amounts of new money for IT policy initiatives – again marking a clear departure from previous years. These include:
- $254.7 million to commence the government’s digital transformation.
- Stage 1 initiatives include:
– $106.8 million for streamlining government grants administration
– $33.3 million for the development of a trusted digital identity framework
– $11.5 million for the enhancement of the “tell us once” service
– $7.1 million for the development of a whole-of-government digital mailbox solution
– development of a mandatory digital service standard, with costs to be met from within DTO core funding
– $153.8 million to defray the cost of additional data retention requirements. An additional $1.7 million has been provided for oversight by the Office of the Australian Information Commissioner
– $143 million for systems to support the National Disability Insurance Scheme
– $130.9 million to enable the Tax Office to upgrade MyTax to cater for more complex tax returns
– $33.7 million for a national gateway for career support
– $32.4 million for streamlining business registration
– $17.6 million for a new datacentre for the Australian Federal Police
– $12.9 million for IT security enhancement for politicians
– $12.2 million for a health organ matching system
– $7.8 million to extend a trial for in-home telehealth for veterans
– $7.8 million for crowd-sourced equity funding for public companies
– $3.7 million to extend the trial for in-home telehealth for veterans.
Noonan warns that with such a strong ICT spending agenda, there could be some issues in meeting skills requirements.
“This would be a very opportune time to lock in contractors and permanent staff, before they start to pack their bags for growing job markets in Canberra,” Noonan said.
SAP ANZ president and managing director, Andrew Barkla, welcomed the Budget, and in particular, the move towards digital transformation.
“We are living in a highly competitive, hyper-connected and disruptive global economy. As a nation, we can’t afford to ignore investment in digital transformation,” Barkla said.
“It is encouraging to see a commitment to the implementation of the digital transformation agenda and to the Digital Transformation Office. The modernisation of government services to improve digital experiences for the citizens of Australia is essential if we are to compete in a growing digital and global economy.
“Investment in digital infrastructure – such as that announced for Centrelink – drives further private sector investment and creates business opportunities. It also paves the way for start-ups and creates jobs.”
Barkla also said the package of small business tax incentives were positive for the technology partner ecosystem, but raised concerns over whether the education sector is prioritising ICT skills sufficiently for the long-term.
“We are seeing the highest level of youth unemployment in decades and a widening ICT skills gap. Given that an estimated 75 per cent of the fastest growing occupations will require Science, Technology, Engineering and Mathematics (STEM) related skills and knowledge, it is imperative we introduce these skills into our curricula early,” Barkla said.
“The investments announced to improve teacher education indicate a small step in the right direction. However, specifics as to how the Government intends to support and invest in curricula, partnerships and programs that integrate education and work experience, providing the skills tomorrow’s talent need to compete, are lacking.”
