IT companies have been advised to hang on to their staff in the new year, with the Australian Information Industry Association warning that attrition rates will stay high unless firms take steps to retain their employees.

The Federal Government's encryption law in its current form will have a negative impact on the country's ICT industry and block practitioners from innovating and exporting the products of their innovation, the Australian Information Industry Association claims.

The head of the Australian Information Industry Association, Ron Gauci, has sought an assurance from the re-elected Coalition Government that amendments to the encryption law, which was passed in December, will be adopted within its first 100 days of operation.