The government will end financial support for NICTA from June 2016, with the organisation forced to fend for itself under measures announced in tonight’s budget.
The organisation will be forced to seek private sector and grant-based funding, the government announced tonight.
The government will continue fund the organisation for the next two years.
“The Department of Communications and the Australian Research Council will each contribute $21.4 million in 2014–15 and $21.0 million in 2015–16,” a media statement issued by Communications Minister Malcolm Turnbull’s office said.
“It was always expected that funding from the private sector would play an increasingly important role in supporting NICTA's operations.
“NICTA's rapid recent growth in commercial revenue, through its partnerships with domestic and overseas firms, shows it can draw funding from a wider range of sources.
“In recognition of NICTA's maturity and current stage of development, the Government considers the time is approaching for NICTA to stand on its own feet from June 2016.”
NICTA has been approached for comment.