Insight,

Federal Budget 2026-27: The digital economy / AI and Technology

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The Budget directs substantial funding towards digital government infrastructure, cyber security and online safety. The headline item is a $654.3 million commitment over four years to maintain the security of the Australian Government's Digital ID System.

Other notable allocations include $198.1 million to modernise business registers and extend participation in the Consumer Data Right, $160.4 million for the Services Australia Cyber Security Uplift program, and $112.7 million to address online gambling harms.

The Budget also provides funding for the use of artificial intelligence to accelerate environmental approvals and introduces measures targeting scam prevention and news media sustainability.

Digital ID system

  • The Government will provide $654.3 million over four years from 2026–27 to maintain the security and reliability of the Australian Government's Digital ID System. Funding includes:
    • $357.4 million over four years from 2026–27 to the ATO to maintain operation of myID and the Relationship Authorisation Manager, including implementation of additional security controls and functionality.
    • $135.2 million over four years from 2026–27 to Services Australia to continue its role as the Australian Government Digital ID System Administrator and maintain the operation of the Digital ID Exchange and myGov LinkID.
    • $98.0 million over four years from 2026–27 to the Australian Competition and Consumer Commission to continue Digital ID regulatory functions.
    • $30.8 million over four years from 2026–27 to the Department of Finance to continue policy leadership and governance of the Digital ID program.
    • $22.2 million over four years from 2026–27 to the Office of the Australian Information Commissioner to continue to provide privacy oversight under the Digital ID legislation and Identity Verification Service programs.

Better regulation and data

  • The Government will provide $198.1 million over two years from 2026–27 to boost productivity through streamlining regulatory systems and secure access to data. Funding includes:
    • $136.1 million over two years from 2026–27 to complete the second tranche of stabilisation and uplift of Australia's business registers, including synchronising director information with the ACNC’s Charities Register, linking Director IDs to the Companies Register, uplifting Australian Business Number (ABN) authentication and completing the transition of ABN and superannuation lookup functions to the ATO.
    • $62.0 million over two years from 2026–27 to extend the operation and participation in the Consumer Data Right to continue supporting Australian consumers and businesses and to explore the potential to enable taxpayers to share certain ATO‑held data through the Consumer Data Right.

Services Australia digital uplift and cybersecurity

  • The Government will provide $160.4 million over four years from 2025–26 for the Services Australia Cyber Security Uplift program.
  • The Government will provide additional funding of $26.5 million over three years from 2025–26 to improve the functionality, availability and security of the myGov platform and $19.8 million in 2025–26 for planning, feasibility assessment and proof‑of‑concept activities for the Services Australia long‑term ICT architecture strategy.
  • The Government will also provide $89.3 million over four years from 2026–27 to sustain and enhance cyber security initiatives.

Addressing online gambling harms

  • The Government will provide $112.7 million over five years from 2025 to address online gambling harms through improved consumer protections, expanded support services and targeted public awareness and education campaigns. Funding includes:
    • $28.7 million over four years from 2026–27 to improve BetStop by strengthening data matching systems and enhancing usability to optimise client safety outcomes.
    • $22.6 million over five years from 2025–26 to implement wagering advertising reform, boost compliance and enforcement actions against illegal gambling services and enhance consumer protections from harmful online lottery products.
    • $22.4 million over three years from 2026–27 to develop and implement a national online gambling public awareness campaign to empower people affected by gambling harm.

Accelerating approvals

  • The Government will provide funding to accelerate and streamline approvals processes and implement reforms to strengthen Australia's foreign investment framework, including $105.9 million over four years from 2026–27 for the Department of Climate Change, Energy, the Environment and Water and the National Environmental Protection Agency to modernise environmental information, data and digital systems (including through the use of artificial intelligence) to improve user experience.
  • The Government will also amend the Telecommunications Act 1997 and the National Broadband Network Companies Act 2011 to streamline approvals for telecommunications infrastructure, support the removal of redundant facilities, improve the National Broadband Network and strengthen consumer safeguards.

News and media sustainability

  • The Government will legislate a formula‑based model to distribute revenue raised by the News Bargaining Incentive to support the sustainability of news and public interest journalism.

Fighting scams

  • The Government will introduce a user charge to recover the cost of operating the SMS Sender ID Register from 2026–27, which is estimated to increase receipts by $8.6 million over four years from 2026–27 and $2.2 million per year ongoing from 2030–31.
  • The Government will provide $12.7 million in 2026–27 to extend the operation of the National Anti‑Scam Centre to continue protecting consumers and businesses from scam activity for a further year.
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