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By Jane Wardell
CANBERRA, May 3 (Reuters) - Australia promised to inject fresh funds into a range of technology projects in its annual budget on Tuesday, building on an ambitious plan for sectors like FinTech and cybersecurity to replace funds lost from a waning mining investment boom.
Prime Minister Malcolm Turnbull, who made his fortune as a former online entrepreneur, is trying to position himself as a leader who can transform Australia into a tech-savvy business hub as its economy deals with a commodities downturn.
Tech measures in the 2016/17 spending plan include the appointment of a Cyber Ambassador, the creation of a cyber cooperation program in the Indo-Pacific region, co-investment in startups created by the country's scientific agency and consultation on a "regulatory sandbox" for FinTech businesses who want to test their early stage ideas with clients.
"A strong and vibrant FinTech industry will play an important role in the transition underway in Australia's economy," Treasurer Scott Morrison said.
The budget allocates some A$195 million over four years in Australia's cyber security capability, including the creation of the Cyber Ambassador role and fresh funds for Australian Federal Police.
Turnbull said last month that hacking attacks cost the country A$1 billion a year. The Bureau of Meteorology and department store chain Kmart Australia Ltd, owned by Wesfarmers Ltd WES.AX , both suffered online attacks last year.
The budget includes support for private-public partnerships for Australian businesses to develop and promote their cyber security capabilities globally.
"So often, successful technology ventures have started by solving a complex problem for governments," Morrison said.
The government also released a discussion paper seeking public submissions on options to address the "double taxation" of consumers who use digital currencies such as BitCoin to buy goods and services already subject to sales tax. The paper comes just a day after an Australian, Craig Wright, claimed he was the founder of the crypto-currency known by the pseudonym Satoshi Nakamoto.
Australia's new innovation strategy doesn't entirely abandon the resources sector, which represents around 10 percent of Australia's gross domestic product (GDP) and more than 50 percent of its exports.
The budget provides A$100 million to Geoscience Australia for mapping mineral, petroleum and groundwater potential in targeted areas across northern Australia and South Australia with the aim of identifying new greenfield sites for future development. Geoscience says some 80 percent of Australia remains underexplored.
"This will improve Australia's long term exploration prospects and help address declining new onshore exploration," Resources and Energy Minister Josh Frydenberg said.
Geoscience Australia was responsible for compiling data in the 1960s that helped identify the resource potential of Olympic Dam, now the location of a major BHP Billiton (LON:BLT) BHP.AX copper mine.