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Monday, 22 October 2012 15:01

Budget cuts leave IT and NBN alone

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The Australian Government’s minibudget, otherwise known as its Mid-Year Economic and Fiscal Outlook (MYEFO), has left the IT industry alone.

Most of the swingeing cuts will be directed to middle class welfare like the baby bonus, and to a tightening of corporate tax payment schedules. Federal Government Treasurer Wayne Swan did not mention IT in his announcement – all programs that have been announced will continue for the rest of the financial year.

Indeed, it is possible that IT may benefit, as agencies seek efficiencies in a number of areas. “Last year’s MYEFO statement announced substantial cuts to public sector running budgets and capital expenditure,” says Ovum’s Kevin Noonan. “With these cuts still washing through government agencies, further cuts would have created significant problems.

“This is particularly the case, given the already announced tightening of government funding in September. This is mainly related to contractors, travel and printing. With many government agencies now running on the smell of an oily rag, future savings will need to come through productivity and innovation, rather than old-fashioned cross board cost-cutting.”

The NBN is unaffected, as is funding for the Department of Broadband, Communication and the Digital Economy. Prime Minister Gillard has been prominent recently in promoting the benefits of the NBN – it would seem to be immune from the razors and hatchets of the Finance Department and Treasury fixation on a balanced budget.


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Graeme Philipson

Graeme Philipson sadly passed away in Jan 2021 and a much valued senior associate editor at iTWire. He was one of Australia’s longest serving and most experienced IT journalists. He is the author of the only definitive history of the Australian IT industry, ‘A Vision Splendid: The History of Australian Computing.’

He was in the high tech industry for more than 30 years, most of that time as a market researcher, analyst and journalist. He was founding editor of MIS magazine, and is a former editor of Computerworld Australia. He was a research director for Gartner Asia Pacific and research manager for the Yankee Group Australia. He was a long time weekly IT columnist in The Age and The Sydney Morning Herald, and is a recipient of the Kester Award for lifetime achievement in IT journalism.

Graeme will be sadly missed by the iTWire Family, Readers, Customers and PR firms.

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