Given the economic climate, the chief executive of NZTech, Graeme Muller, said it was pleasing to see increased investment in tech throughout the Budget.
The Wellbeing Budget 2023 included direct investment into supporting the growth of technology exports through a 20 percent tax rebate for expenditure by game development businesses. The rebate is up to $40 million annually to support job creation in a sector on track to be a billion-dollar export contributor. This is in response to similar rebates in other countries attracting one of New Zealand's fastest-growing tech sectors.
Agritech, another growth export sector for New Zealand, will be boosted with a $29 million investment in a horticulture technology catalyst initiative to support technology uptake across the sector, innovation and the growth of more high-value tech jobs.
Another investment into creating high-value tech jobs is the $26 million invested over four years to boost the skills pipeline for digital technology jobs. This includes much-needed funding into new 'earn as you learn' and other work-integrated pathways into tech jobs designed to attract a more diverse workforce. The funding will also accelerate the transition of the sector's workforce practices to provide more entry-level roles and career development opportunities, reducing the reliance on immigration.
"It is great to see these investment announcements straight after Minister Anderson releases the Digital Technology Industry Transformation Plan (ITP) on Monday," said Muller.
Muller continued that a plan with no budget isn't worth the paper it's written on, but the Digital ITP has now had significant investment over the last two budget cycles. NZTech has started to see the activation of initiatives supporting the growth of the tech sector, directly leading to more high-value jobs and exports for the New Zealand economy.
"The budget also included investment in tech to help make New Zealand safer, improve digital access and digital inclusion, and tech investments into other sectors, all important for the future prosperity of New Zealand."
Muller shared that cybersecurity has continued to be an area of underinvestment for New Zealand relative to other countries. However, he elaborated that it was good to see $31 million pledged to improve the cybersecurity of schools and kura and $9 million for enhancing the cyber resilience of critical national infrastructure.
The New Zealand tech sector is now the second-largest export contributor to the economy, generating more than $11 billion in offshore sales, accounting for $18 billion in GDP and employing more than 100,000 people.
This week is New Zealand's national Techweek, the annual tech and innovation festival, with hundreds of events reaching thousands of Kiwis throughout New Zealand. NZTech, the voice for technology in New Zealand, represents 20 tech associations and is supported by over 2,000 members who employ more than 10 percent of the New Zealand workforce.
