A slowdown in spending by the Albanese government is putting small tech companies at “real risk” of collapse and forcing agencies to rely on legacy systems for longer, the Australian Information Industry Association has warned.
In a submission to a parliamentary inquiry probing sovereign capability in the technology sector, the AIIA said SME companies within its membership are “hurting” following the arrival of a policy designed to reduce the use of consultants and contractors.
The policy was introduced in 2022 to claw back $3 billion over four years and rebuild internal Australian Public Sector (APS) capability, with the recent tax leaks scandal involving PwC only hardening the government’s resolve.
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This is an Australia wide phenomena, it’s not just “the Albanese government”, each State and Territory has followed the same action with funding being cut or stopped entirely and contracts being closed with remaining funds still to be spent.