Prime Minister Anthony Albanese announced a major cabinet reshuffle yesterday and appointed New South Wales Senator Tim Ayres as the new Minister for Industry, Science and Resources. Ayres takes over the portfolio from Ed Husic, who was removed during the reshuffle despite his prominent role in advocating for tech and innovation policy.
Ayres’ appointment marks a significant shift, as he brings a background rooted in manufacturing and union leadership rather than the tech-centric approach of his predecessor. As industry leaders react to the change, one of Ayres’ lesser-known proposals from eight years ago could offer some insight into his economic philosophy.
In a 2017 speech to the NSW Fabian Society, Ayres put forward the idea of using inheritance taxes on high-value estates to fund capital grants for young Australians.
The concept, inspired by economist Thomas Piketty’s advocacy for taxing wealth transfers, aimed to address intergenerational inequality.
Ayres suggested that taxing estates worth over $10 million could generate billions, which would then be redistributed as one-off grants to young people when they turn 25. The idea was to give younger Australians a financial boost to buy a house, start a business, or pay off university debt.
“According to the Community Council of Australia, a 35% estate duty on all estates over $10 million would raise at least $3.5 billion in government revenue, while affecting only a fraction of the top 1% of Australians,” Ayres said at the time.
“A universal inheritance would give millions of young people a future: they can put it to a house, they can start their own business, they can pay off their university fees. It may be bold, but politics as usual doesn’t offer the scale of policy that is required to genuinely tackle regional and intergenerational inequality.”
Ayres also advocated for low-interest loans to support manufacturing investment, arguing that direct government intervention was necessary to revitalise local industry and create sustainable jobs.
As the new Industry Minister, the question is whether Ayres’ approach to economic justice and targeted funding eight years ago could influence his strategy for boosting Australia’s tech and innovation sectors.
Could a similar model be adapted to support tech startups and regional job creation, given his background in advocating for blue-collar workers and regional development?
Tim Ayres has long been a prominent figure within Labor’s left faction and is known for his strong ties to the union movement and his commitment to Australian manufacturing.
Raised on a beef cattle farm near Lismore, Ayres studied industrial relations at the University of Sydney before launching his career as a union organiser in the Riverina region.
His role in advocating for workers led him to become the New South Wales Secretary of the Australian Manufacturing Workers’ Union (AMWU) in 2010.
Over his seven-year tenure, Ayres was a vocal participant in public policy debates surrounding the future of work, economic transition, and job creation.
His focus on revitalising Australian manufacturing made him a well-known figure among workers and business leaders alike.
Ayres entered the Senate in 2019 and has since held roles such as Assistant Minister for Trade and Assistant Minister for a Future Made in Australia.
His political career has been marked by a commitment to boosting domestic industry and creating jobs, particularly in regional areas.
Initial responses from the tech and startup community reflect a mix of cautious optimism and curiosity about what Ayres’ appointment could mean for innovation and investment in Australia.
Some leaders specifically addressed Ayres’ previous stance on inheritance taxes and low-interest loans as a means to stimulate industry.
Ben Thompson, CEO of Employment Hero, said the change is an opportunity to rethink how innovation and the future of work are approached, “providing an opportunity for the government and industry to work together to better align national policy with the everyday realities faced by Australian businesses and the community”.
“Employment Hero’s April Jobs Report shows headcount continues to rise, but productivity remains flat. We must invest in areas that will compound to drive business growth and economic prosperity long-term, such as high-speed connectivity, nationwide digital upskilling, and responsible AI adoption.
Thompson also noted that funding the foundations to future-proof the workplace is crucial.
“We welcome any measures that make it easier for people to start, run and grow a business in Australia. Supporting people building innovative new companies is an investment in Australia’s future,” Thompson said.
Kal Jamshidi, managing director of Mighty Partners, also responded to Ayres’ past advocacy for low-interest loans, expressing support for the principle of offering more structured financial instruments to boost sustainable growth.
“Historically, there’s been too much belief in speculative capital as the only path forward,” Jamshidi said. “At Mighty Partners, we believe businesses should have access to a variety of instruments to drive growth. Important sectors have been starved of patient, strategic capital for too long.”
David Burt, director of entrepreneurship at UNSW Founders, expressed cautious optimism, noting that while Ayres’ commitment to domestic industry is promising, the key will be moving faster than in the past.
“The opportunity is for Tim to move faster. While the stated intent of Commonwealth economic development policy is great, the design and implementation has been like watching a turtle drag a suitcase uphill,” Burt said.
“There’s no ‘later’ for Australia’s startups, only ‘too late’.”
Craig Blair, co-founder and partner at AirTree, believes Ayres’ appointment could bring a chance for technological expansion.
“With this new appointment, there’s an opportunity to take the bold, national flavour of Future Made in Australia and apply it even more to technology, the third-largest sector in the country,” Blair said.
“Tim has big shoes to fill, and we look forward to working with him to keep innovation front and centre, especially in critical areas like AI, workforce development, and unlocking private investment at scale.”
The Tech Council of Australia (TCA) also responded positively.
“Senator Ayres has been a strong advocate for advanced manufacturing and the future of Australian industry, and his leadership will be vital as we work towards building a stronger, more competitive innovation economy,” TCA CEO Damian Kassabgi said.
He also celebrated the appointment of Dr Andrew Charlton MP as Assistant Minister for Science, Technology and the Digital Economy. The latter is a new ministry appointment that the TCA had been actively advocating for.
“We were pleased to see the digital economy was explicitly added to the ministry – a strong signal of the government’s commitment to this critical area of future growth for jobs, productivity and economic prosperity. Dr Charlton’s deep economic credentials and experience across government and business will serve him well in this critical role,” Kassbagi said.
Emma Jones, CEO and co-founder of Project F, acknowledged the work Ed Husic did in the role over the past three years.
“I’m grateful to Ed Husic for his backing of the tech sector and for championing diversity in STEM – that kind of leadership matters,” Jones said.
“I don’t know Tim Ayres personally, but his work on the future of work suggests there’s an opportunity to keep momentum going, especially when it comes to innovation and fixing Australia’s tech talent crunch.”
Rajat Kulshrestha, CEO and co-founder of Space Machines Company, pointed out that Ayres’ background as a manufacturing advocate could be crucial for Australia’s emerging space industry.
“Investing in Australia’s space manufacturing capabilities is no longer a nice-to-have; it’s critical for our long-term economic and national security,” Kulshrestha said.
“As a startup founder operating in an industry as critical yet nascent as space in Australia, Minister Ayres’ appointment marks a pivotal milestone for our nation’s future.”
Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.
Deputy editor
A multi-award-winning journalist, Tegan has been reporting on technology, telecommunications and gaming for the past 10 years. She regularly appears on mainstream media channels as an expert tech commentator. Her previous roles include editor of Gizmodo Australia and global reviews editor at Finder. She has also served as a reporter and editor across Business Insider, Lifehacker and Kotaku Australia. Tegan is also the co-host of one of the top technology podcasts in Australia, Weird Tech. You can find her on Twitter @Tegan_Writes.
Comments