AIIA CEO Rob Durie said overall it was a good budget although initiatives to overcome skills issues were not addressed.

"While we broadly support the government's budgetary initiatives, we however, do have concerns in relation to the lack of initiatives that support building our skills base," he said.

"In particular, much more needs to be done to encourage greater participation by young people in tertiary ICT education if we are to ensure a flow of appropriately skilled people to support an industry which underpins productivity growth in the broader economy.

Durie said key initiatives to assist the ICT industry are:

- The 33 percent increase in the allowable depreciation rate of assets under the uniform capital allowance (UCA), which effectively increases the incentive for Australian businesses to invest in new plant, equipment and technology.