Australia Has Surprisingly Snubbed Bitcoin and Other Tech From Its Budget

Australia has surprisingly snubbed Bitcoin and other tech in its budget as the whole excitement came crashing down disappointingly.

Australia’s Labor Party has surprisingly snubbed Bitcoin and other tech in its budget as all the hype came crashing down in a disappointing fashion. While most countries are gravitating towards Bitcoin and other technologies, the lack of a mention left Australians with dismay.

In the week before Treasurer Jim Chalmers delivered his Labor’s third budget on Tuesday and the traditional Thursday night sequel from opposition leader Peter Dutton, expectations were not high about a change in the government’s stance on technology in the coming election year. Both parties had been talking up the tech industry, with topics like how to capitalize on the AI boom, discussing how to protect Australians from scams and what needs to be done to crackdown on cybercrime among others.

However, most of the concerned parties understood that there would be a sense of realism in their pre-election budget. They needed to talk about things that would sway voters to their side like tax cuts or energy prices. But while the expectations were quite low, the budget week still managed to surprise most, worrying even the most devoted optimist in the tech industry.

Australia’s parties cuts Bitcoin and other tech in budget

One of the core notes to mention is that tech was not a winner in the Labor Party budget. The budget did not exactly make any major cuts in other aspects, so one cannot say it was downright bad. But the party did not allocate any new spending to the aspects that were mentioned in the budget.

The new round of funding for the cryptocurrency regulator, the Australian Financial Complaints Authority, and the eSafety Commissioner were largely continuations of last year’s programs. Annuities will also be phased out over the next four years, and the government is cutting back on tax breaks for research and development.

The narrative was not any different two days later when a disappointed Peter Dutton unveiled his own budget. Having promised to open up new areas of the economy, he highlighted artificial intelligence (AI), automation, space, cybersecurity, nanotechnology, and biotechnology without a clear explanation of how he would achieve it.

The biggest complaint about the budgets is the failings in acknowledging artificial intelligence, with none of them discussing how to boost the technology or make it safe for Australians. Electronic Frontiers Australia (EFA) chairman John Pane expressed his disappointment.

“Australia remains the last signatory [to the Seoul AI Summit Declaration] to stand up an AI Safety body or regulator,” Pane said.

Many were waiting for an update on the AI Safety Institute that the country promised to establish in May 2024, but they were left disappointed when it was not mentioned. It is also quite concerning that the country has yet to release its plan for AI regulation, let alone implement it. Minister for Science and Industry Ed Husic mentioned in January that the government was on the verge of rolling out its AI regulation, but he has gone quiet on the issue.

Quantum computing and other sectors also miss out

AI was not the only sector that was ignored by the budget, with quantum computing not even seeing as much as a mention. In addition, there was no mention of any spending on the government’s flagship tech policies, the teen social media ban, or the news media bargaining incentive (known as the tech tax).

Cybersecurity was only mentioned about previous spending, with $60 million used to help small businesses protect themselves from data breaches.

Cyber Director at cybersecurity firm NSB Cyber, Evan Vougdis, expressed his disappointment towards the budget and its lack of note on cybersecurity.

“The Federal Budget for 2025 treats cybersecurity as background noise,” Vougdis said.

He added that the government needs to change its approach and take more decisive actions in the sector. Another big loser in tech is the research and development (R&D) space. Mr Husic noted last month that Australia’s investment in R&D had been plummeting, adding that the trend must stop. But the budget released this week showed that the government would wind back tax breaks for R&D by $640 million in the next four years.

A spokesperson for Husic also mentioned that the federal government has made core investments in the tech sector, noting the $500 million earmarked for PsiQuantum to build the world’s first quantum computer in Brisbane which was announced last year.

“In just the last few weeks, our $15 billion National Reconstruction Fund has invested almost $100m in world-leading Australian tech companies across quantum, AI and cybersecurity,” the spokesperson said.

The spokesperson also earmarked the feat the government hopes to achieve in the next five years in the tech sector.

“We have spent our first term laying the foundation for a thriving tech sector, setting a target of 1.2 million tech jobs by 2030, establishing first national strategies for robotics and quantum.”

Funding for key regulators restored after last year’s cuts

One of the reliefs in the budget was the restoration of funding for the regulator, the Office of the Australian Information Commissioner (OIAC). The Privacy Commissioner had