Scott Morrison will announce $1.2 billion for digital services,including $200m for myGov.

Scott Morrison will announce $1.2 billion for digital services,including $200m for myGov.Credit:Alex Ellinghausen

Almost half the new funding will go to improvements in the way Australians use government services online,including the myGov website and the My Health Record system.

While $200 million will go to the myGov site,which is the main entry point for Australians who need federal services or support,$300 million will be spent on the health records including its digital identity system.

Prime Minister Scott Morrison will announce the digital economy spending on Thursday with a declaration the digital transformation “needs to happen” because it is under way around the world.

“We must keep our foot on the digital accelerator to secure our economic recovery from COVID-19,” he says in remarks sent to the media ahead of the announcement.

Another $100 million will be spent on skills programs such as a pilot program for cadetships and scholarships for technology graduates.

The CSIRO will receive $124 million to ramp up research in artificial intelligence at its Data 61 information technology unit.

The government will spend $111 million to speed up the use of the Consumer Data Right in sectors such as banking and energy,an idea announced in 2017 and meant to allow Australians to control the personal information gathered by big companies.

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While the Consumer Data Right holds out the promise of allowing customers to compare and switch services between companies – such as moving accounts between banks – it has been slow to roll out across businesses.

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The government will also spend $50 million on cyber security services in government,data centres and telecommunications networks.

Smaller programs include $12.7 million for a small business advisory service on digital technology,$15.3 million to encourage the adoption of electronic invoicing and $35.7 million in grants and other support for technologies such as drones.

The budget package also has a Digital Games Tax Offset of 30 per cent to help Australian game developers.

The total outlay of $1.2 billion not only adds to the $1 billion announced last October but a$1.7 billion cyber security strategy unveiled last year. A government spokeswoman confirmed it was “new money” in the coming budget.

The package includes measures overseen by Treasurer Josh Frydenberg,Digital Economy Minister Jane Hume and Employment Minister Stuart Robert.

The new spending comes days after the Business Council of Australia called for a stronger focus on digital skills and technologies,citing analysis from consulting firm EY that suggested an economic dividend worth up to $210 billion over two decades.

The BCA also cited research commissioned by Telstra that a higher rate of digitisation would create 250,000 jobs over five years.

But the BCA called for different measures to the government plan,including a proposal for a dedicated cabinet minister for the digital economy.

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The business group also asked for minimum digital literacy standards for school students and new form of digital “micro-apprenticeship” for people to learn new skills in short courses and work placements.

The BCA paper also proposed tax incentives or grants worth up to $10,000 for small and medium businesses and a 20 per cent investment allowance for businesses to spend on digital services.

Labor industry spokesman Ed Husic has also called for a bigger government commitment to innovation,saying Mr Morrison wrongly criticised Labor at the last election for setting a public ambition on the switch to electric vehicles.

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