On Tuesday 14th May, Treasurer Jim Chalmers and Minister for Finance Katy Gallagher announced Australia’s Federal budget. Labeled a “responsible Budget that assists those under pressure today,” the Treasurer has predicted a second straight surplus of $9.3 billion.

The Government’s key priorities in this Budget are addressing the cost of living, constructing more housing, investing in skills and education, reinforcing Medicare, and managing the economy responsibly to combat inflation. We’re focusing on the technology and cybersecurity components from the budget with commentary injected from industry.

Digital ID

The budget, will include an additional $288.1 million for the digital identity scheme over the next four years.

Jason Baden, Regional Vice President, A/NZ at F5 responded,

“Importantly, the cost-of-living pressures facing Australians took front seat in last night’s Federal Budget. However, there was a missed opportunity to expand on and bolster the nation’s cyber resilience. Digital experiences we often take for granted in our everyday lives, like online banking or eCommerce, are incredibly complex and rely on hundreds of individual apps and APIs to function.”

Chris Sharp, CEO at Pax8 APAC commented,

“While the Federal Government’s 2024 budget commendably addressed Australia’s cost-of-living crisis, this week’s speech notably lacked a crucial term: cyber, failing to acknowledge Australia’s cyber threats and defence needs. Because, it was only two weeks ago that the data or one million ClubsNSW patrons was compromised.”

This funding boost comes just before the full-blown launch of the legislated national digital identity scheme. The program has been in operation for nearly a decade, with both Coalition and Labor Governments contributing approximately $1 billion in expenditure. The funding will be distributed among various agencies and departments involved in the scheme. This is a substantial increase from the $24.7 million allocated in last year’s budget. The majority of funds will go to the Australian Taxation Office (ATO), which will receive $155.6 million over the course of two years for its work on myGovID and the relationship authorisation management service.

Scott McKinnel Country Manager ANZ at Tenable commented,

“We are pleased to see the Albanese Government’s dedicated efforts to enhance our nation’s cyber defences. The investment in cybersecurity over the next decade underscores the importance for both public and private sectors to secure their digital defences. With ASIC’s alarming revelation of heightened threats, it’s evident that safeguarding against espionage and foreign interference demands concerted action.”

The ATO will share $23.4 million over two years with the Department of Finance and Services Australia to pilot government digital wallets and verifiable credentials. Services Australia will be granted $46 million over two years to operate and enhance the identity exchange, while Finance will receive $35.2 million over two years to facilitate the program.

Thea Dedden General Manager Digital Identity & Security at Thales commented,

The focus on fraud prevention, cybersecurity protections and governance is notable, the key challenge here being the ability to strike a balance between security & privacy, and productivity of the Digital ID system as a whole.

The Attorney-General’s department will be allocated $11 million over four years to develop the credential protection register, and Treasury will receive $7.8 million over two years to support data standards. Additionally, the Office of the Australian Information Commissioner has been granted $5.6 million for its privacy oversight role. These funding decisions anticipate the upcoming launch of legislation surrounding the digital identity scheme, expected to take place in July this year.

Dedden went on to say,

Funding for Digital ID in the budget signals that it is time for a faster pace of action, and, at the simplest level gives confidence to emerging and existing players in the ecosystem to push ahead with new developments.

The Digital ID Bill 2024 was passed by the Senate in late March after the Government agreed to over 40 amendments aimed at ensuring the fully voluntary nature of the scheme, improving privacy protections, and expediting its expansion into the private sector.

In Particular, funding for trials with digital wallets and verifiable credentials is an urgent and critical area to roll our sleeves up and determine how to bring the private sector into the system.

Victor Dominello is a former Senior Minister of the NSW Government, took to LinkedIn to share his sentiments on the budget:

Others took to social media platform, X to express their sentiments about Digital ID’s…

What is myGovID?

The myGovID application provides a convenient way to access various government online services, allowing users to prove their identity and securely sign in. It offers encryption and cryptographic technology for security and gives users control over their personal information.

Digital Identity with myGovID:

myGovID serves as a digital identity for accessing government online services, replacing traditional usernames and passwords.

Secure Verification and Identity Strength:

The application allows users to securely verify their identity, and the identity strength required may vary depending on the service. It uses encryption, cryptographic technology, and device security features for protection.

Differentiation from myGov:

myGovID is distinct from myGov, as it is a unique digital identity for individuals, while myGov is a platform for linking to various government services online.

Access to Government Services:

Users can access services like Medicare, Centrelink, and the Australian Taxation Office through their myGov account, with the added security of myGovID.

Artificial Intelligence

Artificial intelligence (AI) continues to remain a key focus for the federal government in the tech sector, and the recently released 2024-2025 budget unveils a funding allocation of $39.9 million towards the safe and responsible adoption of AI. The previous year’s budget included $102.2 million over five years to support the integration of quantum and AI technologies into businesses’ operations. As part of this initiative, the National AI Centre was extended to provide support for the responsible usage of AI. In the current budget, $21.6 million over four years, starting in the 2024-2025 financial year, has been designated to establish and reshape the National AI Centre (NAIC) as well as an AI advisory body.

The advisory body will be housed within the Department of Industry, Science, and Resources (DISR). For those concerned with existing regulations and laws surrounding AI. A total of $15.7 million will be allocated over two years for the development and regulation of AI policies.

McKinnel added,

However, as the government ramps up efforts to strengthen its industry and innovation sectors through the Future Made in Australia policy, organisations must prioritise comprehensive visibility across their entire attack landscape. This entails identifying vulnerabilities, addressing misconfigurations, securing internet-facing assets, and mapping potential attack vectors.

This includes a comprehensive review and strengthening of existing regulations in areas such as healthcare, consumer protection, and copyright law. This is particularly significant for those working in the AI regulation space who believe that it may not be necessary to create entirely new laws for AI when existing ones can be adapted to suit.

Baden added,

“It is also the case that the growing presence of AI opens the door to an increase in the number of AI-based cyberattacks. The Government’s investment in a Scams Code Framework will be a crucial piece of the protection puzzle, however, the potential of AI to aid in the defence and mitigation of threats is underdeveloped or unrealised. We have a golden opportunity to double down on AI and apply it as part of the solution.”

Furthermore, there will be a focus on national security risks associated with AI, with a funding of $2.6 million over a three-year period. This investment aims to address and mitigate any potential threats in this area. Overall, the federal government’s commitment to AI is evident in the allocated funding and efforts to establish a robust regulatory framework. It is an exciting time for the industry, with significant investments being made to ensure the safe and responsible use of AI while fostering innovation and growth.

Scott McKinnel went on to say,

“The latest ASD Cyber Threat report for 2022/2023 highlights a 51% surge in incidents targeting critical Australian infrastructure over the past year, underscoring the urgency for proactive cybersecurity measures. The rise of quantum computing poses a new level of risk to Australia’s critical infrastructure. To prioritise research and development, organisations must integrate security measures right from the project’s outset.”

Scams

The Australian government has announced a $67.5 million funding package to support small and medium businesses in their fight against scams. The Australian Taxation Office (ATO) will play a role in this initiative. $23.3 million will be allocated to sustain and strengthen the nation’s e-invoicing network. By encouraging SMEs to adopt electronic invoices, the government aims to address the various cyber risks associated with traditional methods of invoice communication, such as email. E-invoicing provides a more secure and reliable way of sending and receiving invoices, mitigating the potential for fraudulent activities and scams.

The funding received by the ATO will be spread over the next four years, as outlined in the 2024-25 federal budget. Through this funding package, SMEs will have better access to resources, education, and support to enhance their cybersecurity measures.

As a result, this will better inform SMEs to safeguard their operations, customer data, and financial transactions from potential scammers. This funding package is a significant step towards protecting small and medium businesses from digital scams.

Sharp added,

The problem is, even despite the recent flurry of media headlines, many SMBs remain blissfully unaware of how or why they can and should be improving their cyber defences. But it’s not their fault. Rhetoric is typically focused on ‘big business’ attacks, leaving SMBs thinking “we’re too small, our data doesn’t matter”.

Simultaneously, the government plans to develop mandatory industry codes as part of the Scams Code Framework to safeguard against scams. Regulators, including the Australian Competition and Consumer Commission (ACCC), the Australian Securities and Investments Commission (ASIC), and the Australian Communication and Media Authority (ACMA), will allocate $37.3 million over the next four years and $8.6 million annually thereafter for the development and enforcement of these codes.

Australia witnesses thousands of individuals and businesses fall victim to scams each year, resulting in billions of dollars in losses. In 2023, reported scams led to total losses of $2.74 billion, according to the ACCC’s Scamwatch, also reported by KBI.Media. Although this figure was 13% lower than anticipated, it highlights the urgency to address the issue.

Sharp added,

Often, SMBs don’t know how to start conversations, nor who to turn to. Working alone makes the cost of cyber security defences untenable, but it doesn’t have to be this way. For the price of a cappuccino per employee, all businesses can fortify themselves against threats. But they need a Government that consistently recognises the cyber crisis and dedicates resources which get them started on becoming government compliant, fighting increasing cyber insurance premium costs, and protecting their critical data.

Initially, the telecommunications and banking sectors, along with digital platforms, will be targeted, specifically focusing on scams involving social media, paid search engine advertising, and direct messaging. To support the implementation of the codes, an additional $1.6 million will be provided to the Treasury over the next two financial years for development and legislation purposes.

Sharp, went on to say,

“Often, SMBs don’t know how to start conversations, nor who to turn to. Working alone makes the cost of cyber security defences untenable, but it doesn’t have to be this way. For the price of a cappuccino per employee, all businesses can fortify themselves against threats. But they need a Government that consistently recognises the cyber crisis and dedicates resources which get them started on becoming government compliant, fighting increasing cyber insurance premium costs, and protecting their critical data.”

The ACCC has also been given the responsibility of enhancing public awareness of scams and will receive $6.3 million in the 2024-25 financial year to facilitate public identification, avoidance, and reporting of scams. These measures include the establishment of a National Anti-Scam Centre, empowered by ASIC to target phishing websites and investment scams, as well as collaborative efforts with multiple government departments to establish an SMS sender ID registry, led by ACMA.

TLDR;

Digital ID

• An additional $288 million will be allocated to the Government’s digital identity scheme, bringing its total funding to nearly $1 billion.
• Treasurer Jim Chalmers has extended the instant asset write-off trial for another year, allowing businesses in various sectors to deduct $20,000 immediately from eligible assets.
• The budget includes an extra $288.1 million for the digital identity scheme over the next four years.

Artificial Intelligence

• The 2024-2025 federal budget allocates $39.9 million towards the safe and responsible adoption of artificial intelligence (AI).
• The previous year’s budget dedicated $102.2 million over five years to integrate quantum and AI technologies into business operations.
• This initiative includes extending the National AI Centre to support responsible AI usage.
• In the current budget, $21.6 million over four years has been designated to establish and reshape the National AI Centre (NAIC) and an AI advisory body, starting in the 2024-2025 financial year.

Scams

• The Australian government has announced a $67.5 million funding package to support small and medium businesses in their fight against scams with the Australian Taxation Office (ATO) playing a role in this initiative.
• $23.3 million of this package will be allocated to sustain and strengthen the nation’s e-invoicing network, thereby encouraging SMEs to adopt electronic invoices.