Funding cuts in the federal budget will gut Australia's technology start-up scene and speed the flight of talented entrepreneurs, advocates say.
The coalition has announced plans to scrap eight programs from January 2015, saving a projected $845.6 million over five years.
On the chopping block are Commercialisation Australia, which has provided more than $200 million in funding to local start-ups, and the Innovation Investment Fund, which connects start-ups with venture capital.
In their place, the government will devote $484.2 million over five years to an "Entrepreneurs' Infrastructure Program".
Steven Baxter, the managing director of start-up accelerator River City Labs, said the budget cuts would seriously dent the local start-up scene.
"Australia invests a fraction of what other developed countries do funding tech start-ups, and the budget has provided no solid proof that the government intends to rectify this," he said.
Peter Bradd, a board member at start-up advocacy group StartupAUS, said the budget provided "more questions than answers".
"If our leaders don't bring Australia in line with the rest of the world when it comes to fostering tech start-ups, we will continue to see many of our most successful start-ups have no choice but to move overseas."
The government also revealed plans to stop funding the technology research body National ICT Australia (NICTA) from 2016.
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