Australia’s 2025 Budget Leaves Bitcoin and Tech in the Cold

Australia’s tech community is left feeling sidelined after the 2025 federal budget notably overlooked Bitcoin and other critical technology sectors.

• Australia’s 2025 budget ignores Bitcoin and tech sectors
• No new spending on AI, cybersecurity, or quantum computing
• Regulatory funding restored, but tech initiatives overlooked

The Labor Party’s budget, while not significantly cutting other areas, completely ignored key tech sectors. No new spending was allocated for artificial intelligence (AI), cybersecurity, quantum computing, or online safety. AI, for instance, involves machines simulating human reasoning and learning, which is crucial for advancements in numerous fields. Quantum computing harnesses the power of quantum mechanics to perform calculations at speeds unattainable by traditional computers. The opposition leader, Peter Dutton, offered little more than vague mentions of tech in his budget reply, failing to provide any clear plans for supporting tech growth.

One of the most concerning omissions was the lack of progress on AI safety regulations. AI safety refers to measures ensuring that AI systems operate safely and ethically. John Pane, chairman of Electronic Frontiers Australia (EFA), expressed his frustration, stating,

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

This absence of action on AI safety is particularly alarming as other nations advance their commitments in this area.

Quantum computing, another frontier of technological advancement, was similarly ignored in the budget. Despite past investments like the $500 million allocated to PsiQuantum for building a quantum computer, there was no mention of new spending or initiatives in this area.

Cybersecurity, a vital component of national security, received only a nod to previous spending of $60 million for small businesses. Evan Vougdis, Cyber Director at NSB Cyber, lamented the budget’s approach, saying,

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

This lack of focus on cybersecurity is concerning, given the increasing threats in the digital realm. Cybersecurity involves protecting internet-connected systems from unauthorized access or attack, crucial for safeguarding personal and national data.

Adding to the tech sector’s woes, the budget plans to reduce research and development (R&D) tax breaks by $640 million over the next four years. R&D tax breaks are incentives designed to encourage innovation by reducing the tax burden on companies investing in new technologies. This move could further stifle innovation in the tech sector, which relies heavily on R&D to push boundaries and develop new technologies.

While the government did highlight past investments, such as the $100 million invested in tech companies via the National Reconstruction Fund, these were not accompanied by new initiatives or funding. The only positive note was the restoration of funding for the Office of the Australian Information Commissioner (OIAC), which will receive new allocations for enforcement and digital ID programs.

With the next election looming on May 3, the tech sector is holding out hope for more focus during the campaign. However, given the current budget’s neglect, expectations are sinking lower. The tech community is left wondering if Australia will ever prioritize the technologies that are shaping the future of the global economy.

As advocates for decentralization and innovation, we at “Let’s Talk, Bitcoin” are deeply concerned about the lack of support for Bitcoin and other emerging technologies. Bitcoin, the first and most well-known cryptocurrency, represents a decentralized financial system that aims to disrupt traditional banking. While we remain optimistic about the potential of these technologies to disrupt the status quo and drive effective accelerationism (e/acc), the reality is that without government support, Australia risks falling behind in the global tech race. Effective accelerationism (e/acc) is the idea that technological progress should be accelerated to bring about positive societal changes.

It’s not all doom and gloom, though. The resilience and innovation within Australia’s tech sector continue to shine through, despite the lack of governmental backing. Perhaps this budget snub will serve as a catalyst for the community to push harder and prove that they can thrive even without the support they deserve. After all, Australia’s tech sector is feeling more neglected than a middle child at a family reunion, but that might just be the motivation they need to stand out.

Key Takeaways and Questions

• What did the Australian federal budget of 2025 neglect?

  The budget neglected to mention or allocate new spending for Bitcoin, artificial intelligence, quantum computing, and cybersecurity, disappointing many in the tech sector.

• How did the opposition leader, Peter Dutton, address tech in his budget?

  Peter Dutton mentioned tech vaguely in his budget without providing clear plans for supporting tech growth.

• What was the response from tech sector leaders regarding the budget?

  Leaders like John Pane from Electronic Frontiers Australia and Evan Vougdis from NSB Cyber expressed disappointment and concern over the budget’s lack of focus on AI safety and cybersecurity.

• What past tech investments did the government highlight?

  The government highlighted a $500 million investment in PsiQuantum for building a quantum computer and $100 million invested in tech companies through the National Reconstruction Fund.

• What regulatory bodies saw changes in funding?

  The Office of the Australian Information Commissioner (OIAC) saw restored funding, while the Office of the eSafety Commissioner’s funding remained static with minor expected cuts.

• What are the expectations for tech focus during the upcoming election campaign?

  With the next election on May 3, the tech sector hopes for more focus during the campaign, though the current low expectations are sinking further.