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
There were a number of minor IT initiatives announced or
extended in the budget:
an additional $233.7 million has been allocated to progress the
national e-Health agenda, including to enable the operation of the
Personally Controlled Electronic Health Record system. This extends
the previous $466.7 million investment, which runs out in June, and
will allow the system to launch in July;
$240.3 million over four years to build and operate an
information technology system to support the national disability
insurance scheme. According to the budget documents, the system
will collect and analyse data to monitor client outcomes and
measure the performance of the new arrangements;
$82.4 million is being provided to the Australia Prudential
Regulation Authority for an upgrade of its ICT infrastructure;
$19.8 million is to be provided over three years to support
biosecurity ICT infrastructure;
the government is providing over $11 million to support the one
laptop per child program which, as part of a 12 month pilot
program, will deliver over 50,000 laptops to primary students in
regional and remote Australia, particularly to indigenous
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