Tech Council of Australia Claims the Sector Is Now Worth 9% of GDP

Why It Matters

The findings underline tech’s expanding role as Australia’s productivity engine while exposing gaps in job creation and export diversification that could hinder long‑term economic resilience.

Key Takeaways

• Tech sector adds $248.5 bn, 8.9% of Australian GDP
• Indirect tech contributes $122.3 bn by 2025, outpacing direct growth
• Direct tech share of GDP fell from 4.7% to 4.6%
• Tech exports $13.7 bn; US accounts for 45% of sales
• Employment growth lagging; sector unlikely to hit 1.2 m jobs

Pulse Analysis

Australia’s technology ecosystem is now a $248.5 billion engine, accounting for nearly nine percent of GDP, but the bulk of that value comes from indirect tech—industries that embed digital tools rather than produce them. This "techifying" effect mirrors trends in leading economies where software, cloud services, and AI amplify productivity across mining, finance, health and construction. By contrast, the direct tech sector’s GDP share has edged down, suggesting that while firms are scaling, the broader economy’s adoption pace is the real growth catalyst.

Export performance adds another layer of nuance. In 2025, Australian tech goods and services generated $13.7 billion, a modest 2.1% of total exports, with the United States swallowing almost half of that volume. Europe follows, while Asia lags behind at under 10%, highlighting a concentration risk and the need for market diversification. Policymakers and industry leaders are therefore urged to nurture export‑ready capabilities, streamline trade agreements, and reduce reliance on a single market to sustain the sector’s upward trajectory.

The employment narrative, however, tempers optimism. Despite claims of rapid job creation, recent ABS and DISR data reveal a slowdown, with tech employment falling short of the 1.2 million‑job ambition and even contracting in some sub‑sectors. AI‑driven automation and global talent shifts further pressure the labor market. To reconcile productivity gains with sustainable job growth, Australia must invest in reskilling, support emerging tech clusters, and align regulatory frameworks with the fast‑evolving digital landscape. Only a coordinated strategy can translate the sector’s economic heft into broad‑based prosperity.