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To help our nation better use data and digital technology to boost productivity, the Australian Government tasked the Productivity Commission with identifying priority reforms and developing actionable recommendations.
The Commission’s interim report, Harnessing data and digital technology, has since been released. It identifies four priority areas:
Enable AI's productivity potential.
Create new pathways to expand data access.
Support safe data access and use through outcomes-based privacy regulation.
- Enhance reporting efficiency, transparency, and accuracy through digital financial reporting.
Each priority area represents both opportunities and challenges for technology companies.
With an overarching goal to enable a more competitive and dynamic digital economy, it points to a landscape where tech providers must balance faster adoption with stronger accountability while helping industries unlock value from their data.
Looking ahead: challenges and opportunities for tech companies
While government actions that arise from this report will impact companies in a variety of sectors, many technology firms sit at the centre of the changes and will need to respond quickly to new expectations.
With reforms underway across AI, data access, privacy and digital reporting, tech companies will be presented with both obstacles and prospects. Proactively understanding these changes will allow tech firms to turn compliance requirements and other new developments into strategic advantages. This includes improving products and services and scaling effectively in a more predictable regulatory environment.
Here are four aspects of the report that highlight what technology companies may need to consider:
An interesting takeaway is the recommendation to pause steps to implement mandatory guardrails for high-risk AI – at least until there’s a gap analysis of existing regulation. Further insight into how this might work has since been released in the government’s National AI Plan, which details their intention to “…accelerate the broad development and adoption of AI, ensuring every Australian can share in its benefits while keeping a careful balance between innovation and protection from potential risks.” This includes the establishment of a new AI Safety Institute which will go some way towards balancing AI innovation with ethical responsibility.
Most importantly, the Productivity Commission’s report highlights that Australia’s current digital regulations are fragmented and outdated which creates compliance burdens and uncertainty for tech firms. It calls for streamlined, nationally consistent rules around:
- Data sharing
- Privacy
- Cybersecurity
- Digital identity
For tech companies, this means potential relief from red tape and clearer pathways to innovate and scale across jurisdictions. The National AI Plan certainly backs this, with the launch of an ‘AI Accelerator’ funding round to help turn innovative ideas from local businesses and researchers into real-world solutions.
We will be working with our clients to assess regulatory impacts on their operations, and identify opportunities to leverage compliance improvements for growth, digital strategy, mergers and acquisitions, and more.
The Commission advocates for improved access to public and private sector data, especially through the Consumer Data Right (CDR) and government open data initiatives.
It recommends expanding the CDR to more sectors and enhancing interoperability standards by:
- Establishing flexible, tiered pathways for data access.
- Enabling easier sharing of CDR-derived data with outcomes-focussed privacy safeguards.
- Lowering the cost of technical requirements to increase data availability and access.
For tech companies, this means more opportunities to build data-driven products, offer personalised services, and compete more effectively in sectors like finance, energy, and health.
We will be guiding our clients on how to align their data strategies with the new rules, while capturing commercial opportunities across key sectors.
The report stresses the importance of robust digital infrastructure, including high-speed broadband and cloud services, especially in regional areas. It suggests government investment and policy support to close the digital divide.
Similar to other countries, we may see a need for government to provide support for data centre builds. Such support might also cover policies that promote data centres being powered by renewable energy.
For tech companies, this means the potential for improved connectivity and infrastructure providing for broader market access and smoother service delivery.
We are looking forward to keeping our clients abreast of any digital infrastructure upgrades, and assessing whether they represent practical opportunities for growth and efficiency.
A major concern for the tech industry is Australia’s digital skills gap. This was highlighted in the latest IMD World Competitiveness Report which ranked Australia 49th globally in digital and technological skills.
Unsurprisingly, the report calls for reforms in education, training, and skilled migration to meet tech sector demand. It proposes better alignment between tertiary education and industry needs, and more flexible pathways for tech talent.
For tech companies, this means more opportunities to recruit and retain skilled workers – especially in AI, cybersecurity, and software development. The National AI Plan complements the Commission’s report by advising that the Future Skills Organisation will develop generalist and specialist digital and AI units of competency across Australian Qualifications Framework levels to support these future skills needs.
Strategic opportunities for the tech industry
Ultimately, this interim report identifies reform pathways that could unlock new market potential and innovation for technology companies.
We see a number of strategic considerations on the horizon, including:
- Government as a digital leader: The report encourages governments to lead by example in digital transformation, procurement, and service delivery. This could mean more contracts and partnerships for tech vendors.
- Trust and cybersecurity: Building public trust in digital systems is a priority. Companies that invest in secure, transparent, and ethical tech will be better positioned.
- Innovation ecosystems: The Commission supports innovation hubs, R&D incentives, and collaboration between academia and industry. Tech firms should engage with these ecosystems to accelerate growth.
The interim report is a call to action for Australia to modernise its digital policy landscape. For technology companies, it signals a more enabling environment with less regulatory friction, more data access, better infrastructure, and stronger support for innovation.
However, it also foreshadows increased scrutiny of market power and a push for ethical, inclusive digital growth. Tech leaders should prepare to engage with upcoming reforms, advocate for smart regulation, and position themselves as partners in Australia’s digital future.
RSM’s National Technology Industry Group will be keeping our finger firmly on the pulse as new developments emerge that have the potential to affect our tech clients. It will be important to understand how best to adapt to any regulatory and technological changes, and plan strategic responses that balance risk while maximising growth potential.
FOR MORE INFORMATION
Should you have any questions, please feel free to reach out to Mathavan Parameswaran, Darren Booth or our Technology Consulting Team.
