In this episode of Commercial Disco, host James Riley and InnovationAus.com editor Justin Hendry discuss the Cabinet reshuffle following the Albanese government’s landslide victory in the May federal election.
The episode offers sharp analysis of the post-election reshuffle for tech sector, including key new appointments, factional dynamics within the Labor Party and the government’s priorities for artificial intelligence, quantum and the digital economy.
As reported on Monday, Senator Tim Ayres replaces Ed Husic as Minister for Industry and Innovation and Minister for Science. Mr Husic’s exit from Cabinet was the result of factional power plays within the Labor Party.
Senator Ayres previously served as Assistant Minister for a Future Made in Australia and has decades of experience at the Australian Manufacturing Workers Union. His focus on traditional and advanced manufacturing complements the tech-heavy portfolio.
The reshuffle reflects Labor’s internal tensions, with Mr Husic and Mr Dreyfus’ exits tied to factional deals impacting the New South Wales Right. Andrew Charlton’s rise, despite his faction’s reduced influence, underscores his growing prominence.
“It certainly signals the Prime Minister’s faith in Andrew Charlton and the fact that he continues to be … groomed for bigger roles,” James Riley said.
The return of “innovation” to the ministerial title (Minister for Industry and Innovation) is notable, though it’s unclear if the portfolio has been split from science, pending administrative arrangements orders.
Anika Wells succeeds Michelle Rowland as Minister for Communications, while retaining her Sport portfolio. Ms Rowland moves to Attorney-General, replacing Mark Dreyfus, who was also removed due to factional maneuvers.
Ms Wells will oversee critical tech policies, including the social media age ban and the eSafety Commission, which have sparked debate in tech policy circles.
Future Made in Australia and AI priorities
The episode critiques the government’s first-term focus on AI regulation over investment, noting Australia’s lag behind global leaders. In recent months the United States has announced a $500 billion AI program and the EU unveiled major plans, while Australia’s national AI capability plan, announced in December 2024, remains incomplete.
“Far too much focus has been placed on [AI] regulation, and we haven’t even come to a conclusion on that anyway, so we are behind the ball,” Justin Hendry said.
Prime minister Anthony Albanese has highlighted AI as a key focus for Senator Ayres and Mr Charlton, suggesting a shift toward capturing opportunities in the global AI market.
Other notable MPs with an interest in tech and innovation include Jerome Laxale (Labor, Bennelong), Aaron Violi (Liberal), and Allegra Spender (Independent), conveners of the Parliamentary Friends of Tech and Innovation.
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