5G funding 'redirected ' to other priorities

The federal government is discontinuing the $20 million second round of the Australian 5G Innovation Initiative designed to fund job-creating 5G technology projects.

Round one of the Australian 5G Innovation Initiative provided $20 million for 19 projects across key sectors including agriculture, construction, manufacturing, transport, and education, helping businesses and other organisations tap into the productivity-boosting applications of 5G.

The program was first established by the Coalition Government in 2021. Western Sydney Senator Marise Payne said the program would have provided businesses in the Western Parkland City with the opportunity to trial and test the benefits of 5G.

"The Coalition Government understood that harnessing the latest technology through the Western Sydney City Deal would make our communities better places to live and work," Western Sydney Senator Payne said.

"Under round one of this program, we invested $2 million into upgrading the world-class Moorebank intermodal in Liverpool, creating jobs and making it easier for freight to get to consumers.

"With Australia facing significant economic headwinds, Labor shouldn't be making it harder for businesses to grow and invest, yet this decision does just that.

"Stripping away this dedicated funding also undermines the progress made under the Western Sydney City Deal, which has seen record investments in the Western Sydney Airport, local roads and community infrastructure projects.

"If Labor is willing to abandon this successful program, what's next on Labor's Western Sydney hit list?"

On July 15, round two applicants were advised that the initiative had been discontinued.

Communications Minister Michelle Rowland said the government has "redirected" the funding previously allocated for a second round of the 5G Innovation Initiative to other priorities in the portfolio, including online safety.

"We took this position to the election, and it will be reflected in the October Budget," she said.

"The first round of the initiative, which provided $19.5 million in funding, is continuing, and will demonstrate the capabilities of 5G technology in a range of industries, including logistics, agriculture, emergency management and construction."

Ms Rowland said the Albanese Government takes a "serious approach" to 5G.

"Despite being in office for less than three months, we have already invested $480 million to enable the NBN company to upgrade their fixed-wireless network using 5G technology. This was a top priority," she said.

"This funding will allow NBN to fast-track the latest 5G millimetre wave technology across the Fixed-Wireless network across its network of more than 2200 Fixed Wireless infrastructure sites and more than 22,000 cells in semi-rural areas and across regional and remote Australia.

"5G services are now available to more than 75 per cent of the Australian population. Business are also making use of 5G, realising the productivity benefits of using the technology with faster speeds, higher responsiveness and the use of more devices."

Shadow Communications Minister Senator Sarah Henderson said the Albanese Government's decision to shut down the program damages much needed 5G innovation which drives jobs and productivity.

"Labor has demonstrated it has no understanding of the importance of 5G technology to Australia's digital economy," she said.

"When last in government, Labor botched the NBN rollout and failed to fund one mobile base station upgrade. At a time when so many businesses are working hard to recover from the pandemic, they don't deserve this."