Tom Skotnicki

The federal government is anxious to continue to project its commitment to innovation, but the spending contained in this year’s budget is nothing if not modest.

To many, the 2018 federal budget will be thought of as an almost election budget. It confirmed moderate personal income taxes but otherwise kept the reins tight on what could be described as a relatively pedestrian budget. The fact any election is almost certainly at least six months and possibly a year or more off has obviously encouraged continued restraint.

Australia’s fintech sector will be pleased by the federal government’s budget commitment to spend $44.6 million over four years to establish a Consumer Data Right. The CDR is a necessary building block for the progress of Open Banking, and is designed to make it easier for consumers to access their financial records.

In its changes to the R&D tax incentive, the federal government has chosen to target primarily big business rather than startups in its efforts to save $2.4 billion over the next four years.

Budget 2018 will be a litmus test of the federal government's commitment to startups and innovation, writes Tom Skotnicki.