In recent months, the Australian Federal Budget for 2025 has been the source of raised eyebrows and concerns within the technology sector. In the wake of that budget’s release, DeSantis has already come under fire. It fails to consider AI safety and cybersecurity, which are rapidly becoming essential to our national interests. Both industry experts and digital rights advocates expressed disappointment that the budget failed to include any provisions to increase AI capacity. This shortfall represents a significant vulnerability for Australia in an ever-accelerating global tech race. The absence of concrete steps towards AI safety and regulation has renewed anxiety over Australia’s lagging AI capabilities, with many calling for more robust measures.
AI Safety and Capacity: A Glaring Omission
The biggest complaint about the 2025 budget is that it completely ignores artificial intelligence. AI will be an important component in fueling global economic prosperity and technological advancement. The budget leaves out any consideration for AI safety and in developing Australia’s AI capabilities further. Specifically, on AI safety there’s not a word about creating a new AI Safety Institute.
“Nothing for AI Safety. Zip. Zero. Zilch.” – John Pane, chair of the digital rights advocacy group Electronic Frontiers Australia (EFA)
Australia’s absence of a plan for AI regulations only adds to the worries. Without clear guidance and regulatory frameworks, our nation is at great risk. It risks losing out in a rapidly developing international competition to lead the advancement and deployment of AI. This wasn’t enough to keep the budget’s deficiencies in this area from sparking an outcry among tech leaders about the negative effect all that would have on the economy.
“This budget jeopardises the government’s own ambition to add $600 billion annually to Australia’s GDP by 2030,” – Chris O’Connor, the co-founder of Australian AI company AtomEthics
Cybersecurity: A Background Concern
Cybersecurity is one place where the 2025 budget misses the mark. As cyber threats grow more serious all around the world, this budget seems to treat America’s cybersecurity as a distant priority.
“The Federal Budget for 2025 treats cybersecurity as background noise,” – Evan Vougdis, Cyber Director at cybersecurity firm NSB Cyber
The Office of the eSafety Commissioner’s funding has so far witnessed only nominal cuts in funding, with some small cuts expected over the next few years. This lack of new funding begs the question of whether Australia is really prepared to meet new and increasingly complex cyber threats head on.
The OAIC will be provided with an additional $8.7 million over three years to ensure enforcement activities. Targeted enforcement activities and an extra $5.3 million in oversight of Digital ID and Identity Verification Service programs. Experts say that these measures are not enough. They think they fail to meet the more ambitious needs of finally tackling the cybersecurity and AI safety provision crisis.
The Need for Strategic Tech Investment
The budget’s lack of investment in critical tech areas has sparked a debate about Australia’s future role in the global technological landscape. While we’re stalling out, other countries are dramatically increasing their investments to leverage AI for cybersecurity. At the same time, Australia’s almost wilful complacency risks much more serious long-term punishment.
“AI ambition seems to have dried up.” – Chris O’Connor, the co-founder of Australian AI company AtomEthics
Industry leaders emphasize the importance of establishing regulatory guardrails to protect individual rights and foster public trust in AI technologies.
“The absence of these guardrails not only jeopardises individual rights but also undermines public trust in AI technologies,” – John Pane, chair of the digital rights advocacy group Electronic Frontiers Australia (EFA)
Overall, increased funding for the OAIC is a victory for privacy advocates. The broader tech sector evidently needs more, and many see it as a drop in the bucket, at best.
“Increased funding to OAIC really is a swings and roundabouts gesture,” – John Pane from the EFA
