Fintech industry dealt ‘grim outcome’ in pre-election budget announcement

FinTech Australia CEO Andrew Porter called the budget announcement “a grim outcome” for the sector.

“After years of close work with the federal government, it's a shame to see that the fintech industry failed to have really any of its key matters addressed in this budget,” Mr Porter said.

The closest we came was a $38 million commitment to the rollout of the CDR [consumer data right] - $12.5 million per year till 2026.”

A particular note of concern by industry figures related to no government response to the “tech talent shortage” in Australia, which Mr Porter said will see the sector “shrink and job growth will slow”.

Zai CEO Paul Byrne agreed, saying a lack of recognition by government makes any hiring plans in Australia difficult in the short term.

“At this rate, we and other ambitious fintech businesses will be forced to seek out talent in other countries, which is a shame given our Australian foundations and the opportunity for Australia to be a global fintech leader,” Mr Byrne said.

“We would like to see more be done to develop a larger hiring pool of Australian-based tech talent. Whether this is through overseas campaigns encouraging tech workers to relocate or expats to return. It’s pleasing to see more being done to train tech talent at a TAFE and University level, but like most fast-growing businesses, we need to hire now, not in two years' time.

CEO of Kanopi, Nigel Freeman, said the issue is the “one problem that the federal government can easily solve” for the sector and can be achieved by streamlining the skilled visa process for tech workers.

While there were some visa changes announced in the pre-election budget, Mr Freeman said the tech sector “did not get a look in”.

“It’s a shame as it leaves startups in a holding pattern until more local talent is trained -- which could take years,” he said.

“Some startups simply won’t have the capital to hold out of it, so there is a real risk that a lack of action will cost future jobs.”

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.