Prime Minister Scott Morrison has announced an $800 million plan as part of the upcoming Federal Budget to push businesses in adopting new digital technologies and aid in post COVID recovery.The goal is for more business to go digital, thus expanding opportunities for growth and creating more jobs.
How will the $800m be spent?
- $419.9 million for the implementation of the Modernising Business Registers (MBR) program which will allow businesses to quickly view, update and maintain their business registry data.
- $256.6 million towards developing a digital identity system to enable secure and convenient engagement with Government services (possible future expansion to the private sector). More on this below.
- $28.5 million towards supporting the Consumer Data Right for banking and energy sectors.
- $29.2 million to accelerate the rollout of 5G with commercial trials and testbeds for agriculture, mining, logistics and manufacturing.
- $11.4 million towards new regulatory technology commercialization initiative to support compliance and support digital technology firms.
Facial recognition and the Digital Identity Program
The Digital Identity Program will create a biometric identification system with facial recognition software. This will be used for myGov and the ATO’s myGovID.
Focus on SMEs
$22.2 million will be spent on supporting small businesses take advantage of digital technologies with the expansion of the Australian Small Business Advisory Service – Digital Solutions program, a Digital Readiness Assessment tool and Digital Directors training package.$3.6 million towards mandating the adoption of electronic invoicing by 1 July 2020 for all Commonwealth Government agencies to encourage adoption among businesses supplying to government and their supply chains.$2.5 million will go towards connecting workers and SME’s to digital skills training.
- $9.6 million in support for fintechs to export financial services and attract inward investment
- $6.9 million for two blockchain pilots directed at reducing business and compliance costs
- $5.9 million to boost Australia’s influence on international standards
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This article is published by R J Sanderson and Associates Pty Ltd ABN 71 060 299 783. This article contains general information only and is not intended to represent specific personal advice (Accounting, taxation, financial or credit). No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional advice before making any financial or business decision.