MEDIA RELEASE
Correction 24 March 2026
Following release of the report on 23 March 2026, a labelling error was identified in the labour productivity figures in Section 1.2 and associated exhibits. The figures were expressed as GVA per thousand hours worked but were labelled throughout as GVA per hour worked.
The report has been corrected to express all figures consistently as GVA per hour worked.
As a result, the figure stating that tech workers contribute $50,000 more per year to the economy than workers in other industries has also been corrected to $50 more per hour worked. This has been corrected in the media release below.
The relative comparisons, sector rankings, and broader findings of the report are unaffected.
23 March 2026
Technology becomes Australia’s Productivity Engine as sector hits $250 billion
New research from the Tech Council of Australia shows the nation’s technology sector contributes around $248.5 billion to the Australian economy, equivalent to 8.9% of national GDP, and is now the single biggest contributor to long-term productivity growth in the Australian economy.
The report, Technology as Australia’s Productivity Engine, found that the tech sector is the most significant contributor to economic productivity gains over the past decade.
The report also found that the productivity gains extend beyond the contribution of tech companies themselves, with technology embedded across all industries including finance, healthcare, construction and retail, when viewed cumulatively, now delivering close to equal economic value.
Since 2021, technology jobs grew by close to 200,000, with total tech employment now close to 1 million and tech workers contributing on average $50 more per hour worked to the economy than workers in other industries.
Dr Ilana Feain, Head of Research at the Tech Council of Australia (TCA), said the findings mark a turning point in how Australia should think about technology’s role in the economy.
“Five years ago the Tech Council set a goal for the tech sector to reach $250 billion in contributions to GDP by 2030. We have effectively hit that milestone already, but what matters just as much is how that value is now being generated across the economy and how broadly those benefits are shared,” Dr Feain said.
“Technology-enabled work is now contributing as much economic value outside the tech sector as within it. Tech is no longer just an industry. It is driving productivity and growth across the whole economy, in sectors as different as banking, agriculture and aged care.
“Across much of the economy, businesses are still in the early stages of adopting digital tools such as cloud computing, software and data analytics. There is substantial room to grow.
“Emerging technologies, particularly AI, represent the next opportunity to extend those gains further, but realising that potential will require investment, the right policy settings, and a genuine focus on making sure the benefits flow broadly.”
The report also found Australia’s tech export markets have become increasingly concentrated.
“While the export base has grown, the share of total Australian exports has fallen from around 2.5 per cent five years ago to 2 per cent today, with the United States now accounting for nearly half of all tech exports”, Dr Feain said.
“With the right investment and support, tech exports could represent an area of future growth. But we need to ensure that growth is sustainable, diversified, and resilient in a more complex global environment.”
The findings come alongside the recently released Strategic Examination of Research and Development, which recommends technology be formally recognised as one of six National Innovation Pillars.
Rianne van Veldhuizen, Vice President and Managing Director of Amazon Web Services Australia and New Zealand, said the findings represented both a milestone and a call to action.
“Just as roads and ports once determined which economies could trade and grow, today it is increasingly technology. The opportunity to make technology the foundation of Australia’s next wave of prosperity is real and it is here now. We have the talent and we have the ambition. But it will not be realised by accident. It will require deliberate investment, smart policy and a shared commitment to building the workforce and infrastructure that the next decade demands.”
Technology as Australia’s Productivity Engine was supported by Austrade and sponsored by AWS. The research draws on analysis of the ABS Business Longitudinal Analysis Data Environment (BLADE) dataset.
Key findings from the report:
- In 2025, Australian tech sector contributed an estimated $248.5 billion, equivalent to 8.9% of national GDP, effectively meeting the national goal of $250 billion by 2030.
- Tech sector now the second-largest contributor to GDP behind only mining, and growing 50% faster than whole of economy.
- Tech most significant contributor to economic productivity gains over past decade.
- Widening productivity gap between tech sector and broader economy characterised by higher absolute output and accelerating growth rates – tech productivity growth is at ~7 per cent.
- Tech workers contribute ~$50 more per hour worked to the economy than the average worker in other industries.
- Parity between the economic contributions of activity inside tech companies (direct contributions) and tech activities in non-tech companies (indirect contributions) means Australia is no longer just building a tech industry; we are “techifying” an entire nation.
- Australia’s tech exports more concentrated than ever – Asia represents ~10 per cent, North America now ~50 per cent.
The full report, Technology as Australia’s Productivity Engine, can be found at here.
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About Tech Council
The Tech Council of Australia (TCA) is the peak body for the nation’s tech sector. We represent a diverse ecosystem of innovators – from early-stage founders and scale-ups to global platforms and deep tech firms – all working to shape Australia’s digital future.
As the industry’s coordinated voice, we bridge the gap between tech expertise and government policy. Our work is focused on driving smart regulation, building a world-class workforce, and ensuring Australia stays competitive on the global stage. With more than 170 member companies employing hundreds of thousands of Australians, we exist to ensure our country thrives through technology. Our mission is to unite the tech ecosystem to drive jobs, growth, and investment for all Australians.
Media enquiries:
Amy Solomon
0403 339 038
amy@techcouncil.com.au
