The Australian government’s 2023 budget is clearly focused on cost-of-living relief, but fintech and the innovation that fintech can offer to Australians have not been forgotten, said Rehan Dhalmeida, general manager of Fintech Australia. says.
“The Government is providing funding to establish an Industrial Growth Program to help Australian small businesses and start-ups commercialize their ideas and scale their businesses. Early-stage fintechs will be able to weather difficult market conditions and continue to grow,” said Dalmeida.
“We are pleased to announce approximately $90 million in new funding to support our consumer data rights operations, strengthen cybersecurity and advance the rollout of actions.
“This is yet another hidden cost of living measure that, once fully operational, will boost competition in energy, telecommunications and banking services. “This role is more important than ever.
Dalmeida said access to talent remains a major challenge for Australian fintech companies.
“In last year’s Fintech Census, 85% of companies reported this as one of the biggest issues impacting the sector. Investing in skills enhancement would be a positive step towards addressing this problem.”
“Finally, the government’s new sustainable finance agenda is in line with the growing trend of fintechs to incorporate sustainability and positive impact into their business models,” he said.
“Ensuring the integrity of sustainability claims and developing new sustainable finance taxonomies will make it easier for fintech companies to adopt these approaches.”
Meanwhile, Barb Hyman, CEO and founder of Sapia.ai, says governments are missing out on a big AI opportunity and it will be too late to fix it.
“This is a hugely missed opportunity for the federal government to rush ahead in the fast-moving race to not only pioneer, but capitalize on new AI technologies,” says Hyman.
“In the United States, federal government spending on AI is expected to reach $3.3 billion this year. Australia has allocated about $20 million annually over five years, split between AI and quantum computing. is.
“Given the focus on the cost of living, it makes sense that this is not a budget for the tech sector or innovation. It’s right not to complain that people’s lives are getting better.” Benefits and Support.
“But as an AI company ourselves, this innovation is time sensitive,” says Hyman.
“By the time it gets the attention of the world, it’s too late. There’s a reason companies like Google, Amazon, and Microsoft aren’t slowing down despite the ongoing debate about the power and ethics of AI.
Even something as simple as funding the integration of AI into government processes or developing policies for AI adoption would be a step forward. No doubt this could be fixed in next year’s budget, but by then it may be too late. ”
Carbar co-founder and CEO Des Hang says the budget is almost there, but is it enough?
“This is an amazingly well-targeted federal budget across a wide range of policies, covering a wider base of emerging businesses than its predecessor,” Han said.
“All the notable issues are mentioned, but it is questionable whether there will be enough funding to bring about those advances.
“For example, the EV policy puts only $1.3 million a year into creating a national EV infrastructure mapping tool. Given the fanfare around policy, we expected these numbers to be even higher when it comes to EV policy, much of which is cost.
“But as an interesting contrast, more than $2 billion is being put into the hydrogen industry. It will be a new export market for the country.”
Adam Milgrom, a partner at Giant Leap, said impact investing is making its way into the budget and “hopefully we’ll see more investments in the future.”
“Over the last few years, we have observed a shift in how start-ups are perceived within the broader business environment. It has evolved to the point where it can be recognized as a separate entity,” he says.
“It’s great to see terms like ‘impact investing’ and ‘using business to address societal challenges’ naturally rise to prominence within budgets, reflecting their growing importance across the business world. Thing.
“While it is encouraging that these themes are recognized in the federal budget, it is important to recognize that the resources allocated may not be commensurate with the potential impact of the industry,” Milgram said. .
“The inclusion of these themes in the budget will serve as a foundation for building future conversations, and we are optimistic that subsequent budgets will increasingly prioritize and support the impact investing sector.
“We believe our continued focus on impact-driven startups will accelerate economic growth, job creation, and social and environmental outcomes,” he says.
“At Giant Leap, we are fully committed to championing this cause and hope the federal government recognizes the immense potential of our industry and allocates the necessary resources over the next few years. doing.”
ANZ general manager Jose Barroso says small businesses are also suffering from cost of living pressure.
“I am delighted to hear reports of budget surpluses. Finally, we are beginning to see some relief not only for Australian businesses, but also for renters, single parents and job seekers,” he said. say.
“However, we note that SMEs that employ a significant number of Australians still face significant challenges, particularly as they are impacted by inflated interest rates that discourage customers from buying. It is important to
“Despite these challenges, fintech companies like Zai continue to absorb inflation-induced cost increases and continue to support their customers by investing in next-generation payment solutions like PayTo,” said Barroso. .
“These innovations help small businesses reduce the cost of accepting online payments and maintain cash flow to support local suppliers and employees. You can have it in your bank account within seconds after authorizing via your preferred Internet or Mobile Banking option. “
