Paul Fletcher (Bradfield, Liberal Party, Shadow Minister for Government Services and the Digital Economy) Share this | Link to this | Hansard source

I move:

That this House:

(1) acknowledges that:

(a) the digital economy plays a critical role in the Australian economy, helping to drive economic growth and create new jobs;

(b) the Government has not:

(i) provided sufficient funding in the budget to help grow the digital economy;

(ii) produced a digital economy strategy; and

(c) the Government abolished the role of the Minister for the digital economy; and

(2) calls on the Government to prioritise the digital economy by:

(a) providing funding in sufficient levels to advance Australia's digital economy;

(b) delivering a digital economy strategy to make Australian a world-leading digital economy; and

(c) appointing a Minister responsible for the digital economy.

The digital economy plays a central role in the lives of all Australians. We know that digital transformation and the growth of the digital economy have been game changers for our nation, for our economy and for our society. We take for granted many of the benefits of digital services and products, such as Uber, for convenient transport; booking a holiday through Airbnb; or finding an appropriate support worker for a person with a disability, through Australian companies like Hireup or Mable. We take for granted the benefits that services like these, and many others, deliver us. They make our lives easier. They provide customers with greater choice and convenience.

The digital economy has allowed entirely new businesses and sectors to grow and flourish, creating jobs and prosperity. Just think of the various categories which simply did not exist 30 years ago—streaming video, mRNA vaccines, drones, low earth orbiting satellites and additive manufacturing are a few that come to mind.

Talking of low earth orbiting satellites, let me mention two of the many great Australian companies working in this space: Myriota and Fleet Space Technologies, both based in Adelaide, both using low earth orbiting satellites in innovative ways—one using them for services to support agriculture and many other utility type applications; and the other, Fleet Space Technologies, making very exciting use of them to support prospecting for minerals, allowing mining companies to do in a few days what would previously have taken a year or more.

Of course, globally, we've seen huge companies like Amazon, Apple, Samsung and Tencent achieving extraordinary growth. In Australia, there are plenty of good success stories as well: SEEK, founded in 1997, became a top-100 company with a market capitalisation today exceeding $8 billion; Atlassian, founded in 2001, now has a market cap of more than US$43 billion.

The pipeline of digital economy businesses was a major focus for the previous Morrison government. We also had a major focus on the space sector, and, again, the companies that I've mentioned are ones that demonstrate just how important space based technology can be.

Our nation, therefore, is making very good progress when it comes to the digital economy, and I was pleased to join a panel discussion recently at the Tech Summit in Brisbane, with Robyn Denholm, global chair of Tesla, an Australian businesswoman; Scott Farquhar, co-founder of Atlassian; and other tech sector leaders. I reflected there on the progress that has been made since I first got involved, in a public policy sense, in the sector in the late nineties.

But there is much more that needs to be done, and, frankly, the current government needs to work harder. We need a clear commitment from the current government that the digital economy is a clear national priority. We need to work on driving digital take-up in sectors which lag, including the small business sector. A recent survey found that nearly a third of small businesses are still doing their record keeping largely physically; they're still collecting the invoices and chucking them in a shoebox, and, at the end of the year, taking them to their accountant.

If you're not using cloud based internet accounting services like Xero, MYOB or many of the other service providers, then, almost certainly, you also don't have a digital sales and marketing strategy. And that means you're missing lots of customers and every year you're likely missing more customers as, with each passing year, the percentage of Australians who are digital natives—those who wouldn't think of going anywhere but online to work out where the business or product that they're looking for is to be found—gets higher and higher.

We need to see a national digital identity system. This was a major priority for the Morrison government. There was a lot of work done—some $600 million was spent on it—but this has really drifted since the current government came to power. And we need more of a focus on the digital delivery of government services. Unfortunately, this government is more interested in responding to the pressures that they get from union bosses, who are much more enthusiastic about the 1950s-style backward-looking economy. But Australians are going in a different direction. They want government services delivered digitally. Our economy needs to be more digital, and that will continue to be a focus for the opposition.

James Stevens (Sturt, Liberal Party) Share this | Link to this | Hansard source

Is the motion seconded?

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

I second the motion and reserve my right to speak.

Tania Lawrence (Hasluck, Australian Labor Party) Share this | Link to this | Hansard source

The world has moved on a little. We cannot speak of the digital economy now as something separate from the economy as a whole. There was a time when we could, back in the 1980s and the 1990s, for example, when the widespread use of computers and the internet was new. Paul Keating, in the 1990s, spoke of the emerging digital economy. Now, almost everyone on the planet is walking around with at least one computer on their person every day. The digital economy is the economy.

Even what we still refer to as primary industries—mining and agriculture—are infused with the use of digital technology. To put it bluntly, pig farming is getting very technical these days. It shouldn't be a surprise that, when we refer, for example, to the Minister for Communications, we don't use the term 'minister for digital communications'. When we speak of the digital economy now, we need to be more nuanced, lest the term be meaningless. We can certainly identify and speak of the emerging technologies—all of which are wholly or partially digital. These include robotics, cybersecurity, new applications, payment systems, AI, quantum computing and others. The motion calls for a minister for digital technology. Of course, the minister for science and technology already holds this role; he covers the digital field well. In some ways, this seems to be a motion in search of an issue.

Perhaps the member for Bradfield's motion is coloured and confused somewhat by the confusion in the last Morrison ministry! Senator Hume did have the moniker 'digital economy' tacked onto her assistant ministry of superannuation and finance, but in the areas of science and industry it became a little muddy. After 15 April 2021, the member for Cook was Minister for Industry, Science, Energy and Resources, and we're not sure what the then Minister for Industry, Energy and Emissions Reduction, the member for Hume, thought about that, nor what the Minister for Science and Technology, the member for Durack, thought about that—but it must have been very confusing. Australian voters don't have to worry about that now because they have a government with clearly defined roles; a prime minister with one job, which he's doing extremely well; and ministers who are very enthusiastic in their policy areas.

But I can still hear the motion calling out from the far past: 'Where's the digital strategy? We had a digital strategy. Where's your digital strategy?' I can't cover all the relevant work being done by the government in this area in the few minutes left, so I'll just touch on payment systems, cybersecurity, robotics, AI and quantum computing. In terms of payments, in June this year the Treasurer and Assistant Treasurer released the Strategic Plan for Australia's Payments System. It included cybersafety, phasing out cheques, the broader use of digital ID, upskilling the workforce, the use of AI and many other facets.

In terms of cybersecurity, in December last year, the Minister for Cyber Security appointed the Cyber Security Strategy Expert Advisory Board and opened consultation on the 2023-2030 Australian Cyber Security Strategy. In February this year, the Prime Minister led a round table on cybersecurity. In March, Australia was ranked No. 1 by the Massachusetts Institute of Technology as the country showing the most progress on cybersecurity. In June, the government appointed the inaugural National Cyber Security Coordinator, Air Marshal Darren Goldie AM, CSC.

In robotics, submissions closed on 7 May for the National Robotics Strategy. The government will encourage investment in robotics and automation to invigorate the economy and improve dynamism and productivity, at the same time as ensuring a transition to safe and fulfilling jobs for Australian workers. In artificial intelligence, Minister Husic released a discussion paper in June. Safe and responsible AI in Australia looks at regulatory and government responses and proposes several options to strengthen the framework governing the use of AI. Consultations have recently closed, and feedback will be used to build on the $101.2 million in the May budget to support businesses to integrate quantum and artificial intelligence technologies into their operations. In quantum, in May, Minister Husic released Australia's first National quantum strategy based on extensive consultation with the Chief Scientist Dr Cathy Foley and with guidance from the National Quantum Advisory Committee. The minister stated that 'quantum technologies will be truly transformative'.

So I thank the member for the motion. No, it isn't time for a digital economy strategy. The world has moved on, and it is a digital world. We have strategies in the areas of payments, cybersecurity, robotics, AI and quantum computing, and we have more than one minister dedicated to those tasks at hand. To his point about small businesses continuing to use shoeboxes for their invoicing and the like: be assured that small businesses are not being overlooked in the movement and education for computing and digital technology.

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

I want to commend the member for Bradfield for this very important motion and also the member for Hasluck for her contribution, in which she actually confirmed why we need a minister for the digital economy. She mentioned Treasury, the Assistant Treasurer, Home Affairs and cybersecurity, the Prime Minister himself, science and innovation with Minister Husic and also communications. That's the point: it goes across so many industries and so many ministries that you need one person developing the strategy that brings this all together. The digital economy is its own industry in its own right, but it also delivers productivity gains to so many industries. It is across all of government, which is why it's so important that there is someone—one person—leading that strategy.

Michael Porter is well known in strategic management theory. I'm sure the member for Fraser would know him well. He would know Porter's five forces. Anyone who's been in business or done anything to do with economics and strategy would know Porter's five forces. Michael Porter said: 'If a strategy meets a goal: it's working. If a strategy meets a target: it's a success.' The reality is that, when it comes to the digital economy, this government has no strategy, no goals and no targets. There is no way that it can deliver success in a digital economy. We need it all brought together. We need someone leading it. The former coalition government had the 2030 strategy, which was a roadmap that had objectives, goals, targets and funding behind it.

The reality is that industry is frustrated. I am very fortunate to have spent three years prior to becoming the member for Casey working in the digital economy. I've still got many friends in the industry. I speak to many stakeholders and many business owners, and they are frustrated. They are feeling let down by this government because they know there's not a strategy. As the member for Hasluck said, we are at such an exciting time with artificial intelligence, quantum and medtech. We know that the health budget is under significant fiscal pressure at the moment, and medtech is an amazing opportunity to not only help people with health but also take costs out of the health system. There are so many opportunities to create jobs and to provide more efficiencies, and this government doesn't have a plan or a strategy.

One of the big benefits of the digital economy outside its own industry is productivity. We know that our productivity isn't where it needs to be. It's going to be one of the key pillars that's going to bring inflation down and take some pressure off cost-of-living challenges, which all Australians are going through. In its five-year report earlier this year, the Productivity Commission had a whole section dedicated to digital technology and the important role that that would play in driving productivity growth for generations to come. It's transformational, but, again, we don't have a minster to bring that strategy together to drive that productivity.

Let's be clear that, when we're talking about the digital economy and that industry, we're talking about an industry that's estimated to be worth $315 billion over the next decade. It is an industry that is estimated to create 250,000 new jobs by 2025. That's $315 billion of economic growth and a quarter of a million jobs to be created, and this government doesn't see fit to have a minister for the digital economy.

As I said, it's also about productivity and efficiency. If you think about it, we're going to see many people going to watch the Matildas and the soccer tonight. They'll be able to sit at their table and not have to go to the bar. They can scan a QR code and order what they want. That makes it easier for that hospitality venue to get them their drinks and their food quicker, make sure that they're saving money and make sure that it's an efficient time for that business and a great experience for all those people cheering on the Matildas. I'll be one of those people tonight, and I'm looking forward to that.

That is what this is about: driving productivity and greater opportunities for business, as well as improving experiences for consumers. We saw the recent AI report that the member for Hasluck referenced and, disappointingly, it exclusively looks at the risks of AI. There is nothing about the economic opportunities, which is why we need a minister for the digital economy taking advantage of these economic opportunities for our country.

Carina Garland (Chisholm, Australian Labor Party) Share this | Link to this | Hansard source

In many ways this is quite a strange motion. It's quite misleading. I'm not sure what battle those opposite are fighting when we look at what our government is doing in having a holistic approach to the digital economy. This is a motion around something very superficial, about a name for a ministry, rather than the substance of what we're actually doing to achieve real progress in the space of the digital economy. It's something we take seriously and it's something we see that we need a whole-of-government approach on. This is why we understand the intersection of the digital economy across many portfolios, including Treasury and communications—to name a couple that my colleague and friend the member for Hasluck outlined already.

Let's look at what we're doing. Let's look at how the digital economy is already embedded in the work that our government's doing. Frankly, I'm not terribly surprised that those opposite are stuck in the past and fighting a fight that has already moved on, because on this issue, like so many, they are looking backwards rather than looking forwards, which is our government's focus. Before Labor won government in May last year it really was only possible to characterise the previous decade of government as a decade of waste and neglect. That is perhaps in no way clearer than when it comes to the digital economy.

The previous decade saw the former government exhibit a startling lack of understanding regarding the role that the digital economy could play in determining the future of our country. This laziness caused both them and, more importantly, Australia to lose out on some of the biggest shifts in the digital age. With digital technology revolutionising sectors and propelling global economic development, unfortunately, Australia found itself trapped in the past due to the lack of vision from those opposite. That's a past that they are still seemingly trapped in right now, during this debate. Those opposite, satisfied with the status quo, selected a path of stagnation rather than lifting their vision, lifting their ambition for this country, embracing the digital revolution and investing in vital areas like digital infrastructure, research and development, and cybersecurity. We're all poorer for that failure.

The lack of investment, of financial resources, allocated towards digital infrastructure, such as fast broadband networks, significantly impeded our capacity to contend with global competition. Other countries were creating state-of-the-art digital infrastructure while we were forced to struggle with sluggish internet speeds and spotty access. We've suffered a great deal as a result of the inability of those opposite to invest in the foundation of the digital economy. I'm really pleased that we're changing that in so many ways.

We know cybersecurity has been an area of neglect. We know the devastating impact that scams are having in our communities, having lost $3 billion as a nation last year to scammers. It's amazing what difference a change of government makes in addressing this terrible issue. We are committing $86.5 million over three years to combat scam activity and online fraud. Imagine $3 billion ripped out of our communities because those opposite allowed scammers to take advantage of our communities. We are investing $58 million in funding for the ACCC to establish the National Anti-Scam Centre, which launched earlier this year, and we're also establishing an SMS sender ID registry, which will help block scammers from infiltrating legitimate text streams. This issue is of utmost importance to my community. I go around to community groups across my electorate and I speak to people about what they can do to prevent scams, because it is really unacceptable that so many people are being targeted by criminals in the way that they are, and it's a shame that we weren't able to take action over the past decade.

Let's look at what we're doing in the digital economy beyond just that. We're discussing central bank digital currencies. Those opposite are still obsessing over ATMs. We're discussing seamless real-time digital payments. We're building a framework to ensure electric vehicles can be built in Australia, rather than goading car industries and other manufacturers to leave our shores. Those opposite say one thing and do another. They barely moved the needle on tech jobs when they had the opportunity, despite the platitudes we hear in this place today. As with a lot of things, we just get a lot of rhetoric but very little action, the opposite of our government. I'm really pleased to be a part of the Albanese Labor government.

Allegra Spender (Wentworth, Independent) Share this | Link to this | Hansard source

Thank you to the member for Bradfield for moving this motion and for the opportunity to speak about the digital economy. I share the member's enthusiasm for Australia's tech sector. Australians often think of tech as foreign firms like Apple and Meta, but they don't always know what an incredibly vibrant and local tech sector we have here at home. We have homegrown unicorns such as Atlassian, Canva, SafetyCulture and Airwallex; we have a huge amount of world-class talent; and we have a dynamic venture capital community. It's a sector that already plays an important role in Australia's economy but one that could play an even more important role in the future.

Tech is important not just because of the jobs it creates or its contribution to GDP but because it is a key enabler of success for other businesses and because it plays, frankly, a direct role in improving our lives. It's a particularly important part of the economy of Wentworth, where I'm from. The tech sector is actually the second-largest industry of employment in Wentworth. I feel very fortunate to have met so many local people who are helping to grow and develop the sector here in Australia. I'm particularly grateful to those who could work anywhere in the world but have chosen to base themselves in Sydney and help build the Australian tech community. We have been enormously successful over the last decade, and I hope this success continues.

But that success requires the support of government and effective policy frameworks. One of the challenges for the tech sector, I think, is how to coordinate a range of policy areas so that they all support the tech sector effectively in this country, because alternatively it can mean that ministers are working at cross-purposes, such as when the Treasurer is trying to build business productivity and the industrial relations minister is trying to build reforms that undermine it. A lack of coordination can also mean that important policy issues slip between the cracks, as we see with small business, which falls sometimes to the small-business minister, sometimes to the Assistant Treasurer and sometimes to the industry minister. It's a similar problem with the tech sector, where policy issues can fall between the Treasury, industry, education and skills and migration portfolios. There's a clear need for someone at the cabinet level to have responsibility for coordinating across these portfolios—someone to act as a single point of contact between the sector and the government and someone to be a champion for the sector from within government. Whoever is appointed should, as the motion suggests, prepare a digital economy strategy that will guide policymaking across government.

The tech sector has ambitious goals. The Tech Council wants to grow the industry so that a million Australians are employed in tech jobs by 2025, the industry's contribution to GDP is $250 billion by 2030, and Australia becomes the destination of choice for those looking to start and scale a new business. To reach those goals, the government will need to refine its policies across a range of portfolios. In the Treasury space, the R&D tax credit and fringe benefits tax need to be redesigned, long-delayed payment reforms need to be implemented, and we need to ensure our institutional frameworks support the types of investment vehicles that work for startups and for tech companies. In the education and skills space, we need to lift our game with research commercialisation, improve the quality of some of our IT degrees and provide good pathways for skills development outside of universities. In the migration space, we need to make it easier for the world's most talented entrepreneurs, coders and others to relocate to Australia and make a contribution locally.

I commend the activities the government has put forward in these places, but I still feel very strongly that this coordination across the tech sector could play a very valuable role in improving the outcomes for the tech sector and for the broader economy. I'd like to see the Prime Minister appoint a digital economy minister and direct that minister to produce a digital economy green paper by the end of the year, with a white paper to follow next year. Ideally, this would be a bipartisan strategy that provides us with a clear roadmap for the digital economy, including long-term goals and actions it will need to take to support the industry's development.

Jenny Ware (Hughes, Liberal Party) Share this | Link to this | Hansard source

I rise to speak in favour of this motion brought by the honourable member for Bradfield, who has been a passionate advocate for advancing and supporting Australia's digital economy for a long period of time. Our digital economy is now an integral part of the lives of Australians, whether it be e-commerce, e-marketplaces, online education courses, streaming platforms, social media, videoconferencing, e-health or offering innovative work-from-home solutions. According to the ABS, Australia's digital activity accounted for $118 billion, or the 6.1 per cent of our economy's total value, in the financial year 2020- 2021. Therefore, the Albanese Labor government's failure to prioritise the digital economy is incomprehensible. This is now directly impacting the future prosperity of our country.

The digital economy is not just a passing trend; it is the foundation of our future economic landscape. It plays a crucial role in driving economic growth and creating new job and study opportunities for Australians. It is transforming age-old production sectors, from agriculture to law to health. Despite its undeniable significance, the government's policy approach to the digital economy has so far been woefully inadequate. It needs is a comprehensive digital economy strategy to guide us towards becoming a world-leading digital economy. Without a clear roadmap and concrete actions, Australia risks falling behind in the global race for digital supremacy. Moreover, the lack of sufficient funding allocated to advancing Australia's digital economy and lack of investment in digital infrastructure, research and development will limit our future ability to stay competitive and leverage the immense opportunities offered by digital economies. To make matters worse, the government's decision to abolish the role of the minister for the digital economy is regressive. This is a move that demonstrates a complete lack of understanding of the importance of the digital landscape's significance and highlights the government's disregard for the potential benefits that can come from prioritising this vital sector.

Australians are renowned for our innovative spirit and inventiveness, as evident from our impressive contributions to the world in various fields. From the hills hoist to the black box flight recorder to wi-fi technology, the winged keel, Vegemite and the cochlear implant, our nation has consistently pushed the boundaries of human achievement. Australians have similarly embraced the digital revolution, whether as innovators, startups or users. We therefore need a government that will support this revolution and prioritise the digital economy. I particularly want to recognise the role played by many tech companies within my electorate of Hughes.

Therefore, I call upon the government to do three things. First, allocate sufficient funding to bolster Australia's digital economy. Without adequate investment, we risk stalling our progress and lagging behind other nations in this digital race. Second, the government needs to develop and implement a comprehensive digital economic strategy, a framework that outlines clear goals and actionable steps. This strategy must be forward-looking and ambitious, positioning us as leaders in the digital landscape. Third, we need a minister appointed that is directly responsible for the digital economy. This critical position is essential for coordinating efforts and ensuring that digital transformation remains at the forefront of government initiatives.

The government's lack of emphasis on the digital economy is a missed opportunity. Embracing the digital revolution is not just a matter of choice; it is a necessity for our nation's future growth and prosperity. It is time now for the government to step up and prioritise the digital economy to ensure a brighter and more innovative future for Australians. The coalition will be constructive here. We urge action and intelligent, constructive planning to support and bolster Australia's digital technologies.

Andrew Wilkie (Clark, Independent) Share this | Link to this | Hansard source

There being no further speakers, the debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.