So, there’s no mention of AI in the 2025-2026 Budget… and precedence may hamper other policies too

So, there’s no mention of AI in the 2025-2026 Budget… and precedence may hamper other policies too

By Anish Sinha (pictured), Co-Founder of UpCover

 

Australia has delivered a Budget that does not mention Artificial Intelligence (AI) once. While this isn’t the first time this has happened, it is now becoming increasingly unusual as other major global governments and funds prepare to spend billions on securing a foothold with this new technology.

That, in itself, sets the tone for a federal budget that has so little to say about technology, that any sparse mention of a policy becomes a focal point. In that regard, this year’s budget has its sights firmly, and rightly set on cyber security, which we know from our customers is a major issue for small businesses. A breach can cost a business anywhere in the ball park of $50,000 to resolve.

But when you do some napkin maths, the Federal Government is today committing roughly $20 per business towards protecting them. Considering the hardship faced by a breach, and the impact it can have on a business this hardly seems appropriate. For me, the level of impact here should warrant a national upskilling and prevention campaign. The Federal Budget has committed $20 million towards a ‘Buy Australia’ advertising campaign. A similar level of spend on a campaign warning Australians about protecting their business from cybercrime could be warranted.

Much like Australia’s Front Door program, the UK also introduced a similar policy regarding overseas investment. But rather than encourage more investors, it simply created another barrier for investment. While more capital is always better, could the funds be better spent unlocking capital in Australia? We know from dealing with high-net worths and family offices that so much of their wealth is still locked in property. With the right settings, that helps de-risk their investment, that could be re-deployed towards startups.

There’s also precedence for the non-compete policy shift the Federal Government introduced this budget. In the US, the FTC banned this last year, and it let to an influx of incredible talent who were otherwise chained to their proper employer. The key difference is there was no salary range for the policy. While the $170,000 cap seems generous, it potentially still locks away the most capable individuals who could be a great asset to startup founders. It may also have the inverse effect of communicating that anyone over that salary cap should be on a non-compete.
The details aren’t all here, and we’re still yet to see what will come out of an impending election. But even digging a teaspoon into the bigger picture policies of this budget that affect business sees them unravel.
March 26, 2025 | AI . Investing . Technology | Tags: , , ,
Previous

InDebted launches in the UAE to provide modern debt resolution experiences through AI

Next

Loyalty leaders reveal what AI-powered personalisation looks like