ICT now contributes more than $36 billion a year to Australia's economy – more than the agriculture, forestry and fishing, defence and education industries – according to the Australian Bureau of Statistics.

ICT accounted for 4.6 per cent of GDP, and 13.8 per cent of total investment by government and industry, the ABS said.

These figures are complemented by the latest research paper prepared by the Department of Communications, Information Technology and the Arts, which shows investment in ICT returns around 40 per cent in additional value to industry.

This builds on earlier research showing that technology, including ICT contributed up to 85 per cent of productivity growth in the manufacturing sector and up to 78 per cent of productivity growth in the services sector over the last two decades.

James McAdam, AIIA’s General Manager – Strategy and Policy Services, is delighted to see that ICT industry’s vital contribution to Australia’s economy is being acknowledged, saying that “these are the sorts of numbers that AIIA has been quoting for years.

“The Australian Government makes much of the nation’s 14 years of unbroken productivity growth, and acknowledges that the ICT industry has made a significant contribution to that growth, but we must do more.

“It’s not enough for Australia to be just a clever user of ICT goods and services, we must also be a clever producer of ICT,” Mr McAdam adds.

Recent OECD studies demonstrate that those countries that are both good producers and good users of ICT enjoy the greatest uplift in productivity growth from ICT.

“The ICT component of Australia’s current account deficit is now running at $19 billion,” he says. “We need to improve our production and exports of ICT goods and services to make a dent in foreign debt.”

AIIA is currently lobbying the Australian Government to develop positive policy changes to encourage local industry. AIIA believes the government must do more in education, offer more tax incentives to encourage investment by entrepreneurs and risk-taking in developing innovations, and assist more with local research and development.

Australia’s ICT labour market remains in balance, with a stable approach to ICT salaries suggesting claims of an overall skills shortage are inaccurate.

Results from AIIA’s latest Survey of Salaries and Remuneration Packaging in the Australian ICT Industry showed salary increases of 5.2 per cent over the period March 2005 to March 2006. Read more

Under the Singapore-Australia Free Trade Agreement signed in 2003, Australian exporters now have greater opportunities for business growth in the region.

Government and corporate initiatives to encourage growth in Singapore's technology industries are paying off, with the country now on top of the world in technology adoption and network readiness. It is also perfectly placed geographically, with China, Hong Kong, Taiwan, Japan, Korea and India all short connections by plane, phone or the Internet. Read more

Global TeleHealth
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21 and 23 March: Sydney and Melbourne - Global Connect
5 April: Melbourne - Health-e-Nation 2006
6 April: Queensland - SME Marketing Workshop
12 April: Sydney - Powering the Participation Age breakfast
1-3 May: Texas - Special registration price for WCIT 2006
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