Aaron Violi (Casey, Liberal Party) Share this | Hansard source

I move:

That this House:

(1) notes that the:

(a) Digital Economy Strategy 2030 delivered on the former Government's commitment to grow Australia's future as a modern and leading digital economy, including building on regulation as required; and

(b) absence of a minister for the digital economy under this Government has resulted in a slow and unclear development of policy concerning artificial intelligence (AI);

(2) expresses its concern that the lack of clarity on an AI policy framework is damaging to Australian businesses which need certainty to grow and innovate on the global stage; and

(3) calls on the Government to:

(a) recognise the opportunities AI presents and implement a strategy that allows the Australian economy to reap the rewards of emerging technologies; and

(b) appoint a minister for the digital economy to ensure our nation remains globally competitive in what is an increasingly digital world.

It's crucial, when we talk about the digital economy, that we understand there are two elements we're talking about. We are talking about the sector, or the industry itself, which is well represented in Australia by companies like Canva and many others. But we're also talking, very importantly, about the wider impact that the digital economy can have across the whole economy. At a time when we've got a collapse in productivity, it's important that we look at the elements where the digital economy and tech can play a very important role in helping our economy. We look at AI as a great opportunity for us as a country. It covers many different areas, but it is a way that business can invest in their company to improve productivity and their return on investments.

But the reality today in Australia is: businesses are being asked to invest millions of dollars with no certainty from this government. Early last year, they launched their digital safe Australia strategy, around AI. We got to January this year and the minister for industry said that he was going to put on a committee, to have a look and a new review. There's no certainty. It's an example of why we actually need a minister for the digital economy. What's happening in businesses today is that CEOs are talking to their executives and saying, 'Do we invest $5 million in this AI program?' They are going through the opportunities and the risks, and then they're getting to the question: what's the legislative environment that they can work in? The reality is that those executives have to tell the CEO, 'We don't actually know what the government's going to do in terms of regulation.' They've developed a risk where they can invest the money and then they turn around and what they are trying to do is not actually sustainable. Without certainty, business can't invest. Many businesses that I've spoken to have to use the European standard—which is the toughest in the world—as the standard that they operate on. It means they have a limited opportunity.

I hear the member for Bennelong talking about the Tech Council. I'll get onto the Tech Council right now, just for him. I know, as the parliamentary co-chair of the digital economy, he is interested in all areas digital. We'll move to another example of where not having a minister for the digital economy really hurts this country and economy. When you look at the sophisticated investor reforms that the Assistant Treasurer is looking to bring in, they are going to change the level at which people can invest in tech start-ups and invest angel capital to get some of those VCs up and running.

So what did the Tech Council's heads of policy, now acting CEO, Ryan Black, say when asked about sophisticated investors and the changes that this government are looking to make in the space? He said:

We've been talking to a lot of companies in the investment space, a lot of VC fund managers and angel investor organisations, and there is a lot of concern about what has been mooted. A lot of the products on offer, particularly from venture funds, require investors to pass a sophisticated or wholesale investor test and so there is a direct impact on the potential flow of investment into venture capital.

As I said, the government are looking to make changes in this space that are going to directly impact VCs, which are one of the key drivers of innovation in the tech space. And it could not come at a worse time. Data from Cut Through Ventures has shown that 2023 was one of the lowest years on record for VC funding in this country. Things like angel investing are so important because they give businesses the start so they can get to series A, series B and series C and then become the Afterpays et cetera that are so well known and so successful in the tech sector. This is what happens when you have a government that does not have a minister dedicated to the digital economy and making sure that the right decisions are made to drive productivity—

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