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ARTICLE · 11 MAY 2012

Information and Communication Technology: Budget Review

Norton Rose Fulbright Australia
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The biggest single Budget issue to impact the IT community will be the $5.6 billion general cut to defence spending.

AustraliaMedia, Telecoms, IT, Entertainment
Nick Abrahams
Nick Abrahams
Warwick Andersen
Warwick Andersen
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Cut to defence spending

The biggest single issue to impact the IT community will be the $5.6 billion general cut to defence spending. Because Defence has significant spending on IT, this cut is likely to have some impact on the industry, though the budget still includes $550 million for IT remediation activities across Defence.

As previously announced, an efficiency dividend of 2.5 per cent will apply to all government agencies as from 1 July 2012. It is believed that this will also hit government IT spending, as agencies have been encouraged to delay IT projects to meet this target.

IT initiatives

There were a number of minor IT initiatives announced or extended in the budget:

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