Information and Communication Technology

Information & Communication
Technology

Australia’s information & communications technology industry – is one of the most dynamic sectors of the Australian economy.

Australia’s I & CT industry:

• employs more than 381,200 people;
• is a major exporter, earning more than A$5 billion;
• earns $50 billion annualy in total value of sales;
• has highly skilled and trained people with more than 8,000 graduates annually.
• is the largest market after Japan for I & CT goods and services in the Asia Pacific region.

The industry has competitive strengths in applications software development, systems integration, consulting, IT networks, and outsourcing, which includes business engineering and services training.

Areas in which Australia particularly excels in application software development include: engineering, scientific, medical, legal, finance, banking, retail, insurance and government solutions. Many of these are sought by world markets.

Hardware

The hardware market is highly internationalised and all major computer and internet comanies such as IBM, Compaq, Google, Yahoo, Dell and Apple companies are represented in Australia.

An Ideal Investment Location

Government reforms have given local industry the environment needed to compete in world markets.

Australia offers:

• a truly international market;
• a liberalised trade environment for I & CT;
• competition in the telecommunications industry;
• global standards;
• deregulation of financial markets;
• industrial relations harmony; and
• competitive company tax levels.

Australia offers transnational companies incentives to encourage establishment of I & CT activities. These include:

• an open foreign investment policy;
• a company tax rate of 30% and full dividend imputation;
• generous depreciation allowances on plant and equipment;
• a range of development and investment allowances;
• feasibility study grants; and
• Incentives offered to attract Regional Headquarters, such as:
• streamlined immigration processes; and
• deductibility of certain setup costs.

Australia offers world class skills in commercial services such as legal, accounting, management consulting and advertising. Unit costs for these services are up to 25% below those of Hong Kong.

Australia’s time zone offers real advantages in that it is in the same time zone as Asia and gives companies easy access to the close of the US market and the opening of the European market.

National Broadband Network (NBN)

The Federal government along with private enterprise will build a National Broadband Network (NBN), by investing up to $43 billion over eight years delivering superfast optical fibre broadband to homes and workplaces it will involve;

• establish NBN Co Limited to build and operate the network, to provide 90 per cent ‘fibre to the premises’ coverage delivering speeds of 100 megabits per second
• a detailed study to inform the company’s operating arrangements, detailed network design and ways to attract private sector investment
• construction and rollout has commenced in Tasmania and the first 10 communities to receive superfast broadband have been announced
• rollout of almost 6000 km of new fibre optic backbone links, in the Regional Backbone Blackspots Program to connect more than 100 regional locations along the routes to six priority areas
• support 25,000 jobs every year, on average, over the life of the project and at its peak create 37,000 jobs.