Objective 4.1

Innovation in exports and the shift to digital is supported and promoted

Action 4.1G

The Government will support innovation in regulatory technology (RegTech) by providing critical early stage funding to SMEs.

Department of Industry, Science, Energy and Resources

Industry
recommendation/s
Description
Government response
Related Action/s
7C

Government to increase funding to FinTech and financial services regulators to empower proactive regulation and to support the adoption of RegTech solutions.

Noted
17E

Government to implement fit for purpose capital injection to support digital transformation in services.

Agreed-in-principle
19A

Government supports accelerators, incubators and other cluster development initiatives for services sectors, including in regional centres.

Agreed

Progress to date

Under the Government's Digital Business Plan announced during the 2020-21 Federal Budget, the Government is investing $6.9 million to fund two industry-led pilots to demonstrate the how blockchain technology can reduce regulatory compliance costs and encourage businesses to take up blockchain technology to boost productivity. The pilots will test how blockchain technology can be used to streamline regulatory processes, reduce fraud and/or reduce costs of regulatory compliance and administration.

The Government will undertake a $256.6 million expansion of Australia’s Digital Identity program to simplify and reduce costs of interacting with Government and develop legislation to expand the use of Digital Identity to the states and territories and the private sector. This includes face verification capability, finalising integration with mygov and on-boarding additional government services.

The Australian Government’s Digital Business Plan includes $11.4 million to establish a RegTech Commercialisation Initiative through the Australian Government’s Business Research and Innovation Initiative. RegTech, or regulation technology, can decrease the cost of administering and complying with regulation. The initiative will:

  • Provide critical early stage funding to innovative SMEs, enabling them to test new technologies that reduce regulatory burden or regulatory compliance; and

  • Identify regulatory technology solutions that make it easier for businesses to invest and grow, creating more jobs to support our economy.