What does the Federal Election mean for?
With the election now done and dusted, and Anthony Albanese sworn in as our 31st Prime Minister, the first question on our minds at Smart Way to Pay is this: What does this mean for fintech and broader tech innovation?
So far, the news is good. Labor has pledged a whopping $1 billion to invest in ‘critical’ technologies, a similar policy to the UK and EU’s €1b promises for the sector. Fintech Australia CEO Andrew Porter has described the policy as something the tech sector had advocated for, as other industry leaders endorsed the plan.
As interest rates increase and money tightens, many small companies will hopefully be able to lean on the new government to get a foot in the door. That being said, we are yet to see if there will be any appetite for risk with these new investments, or whether they will simply back in existing players.
Funding promising start-ups will be important to ensure the development of our young tech sector, and build the Canvas and Atlassians of the next generation. The biggest issue facing tech in Australia is brain drain – our talent often finds another home in Silicon Valley before their big ideas can contribute to our economy.
That’s why it’s great that Labor is promising funding to allow these ideas to grow – but how impactful it ends up being will be determined by how they ‘splash the cash’. Furthermore, the new Treasurer, Jim Chalmers, has said that Labor is “up for a sensible conversation” about our migration mix, which one would hope results in an increase in skilled migrants in tech – which is what the tech sector has been crying out for.
At least they’re up for a conversation – something that the outgoing Coalition government appeared to rule out.