Assistant Treasurer Daniel Mulino has dismissed the necessity of a Universal Basic Income, despite a brutal wave of artificial intelligence-driven redundancies sweeping through the nation's premier tech firms.
Speaking at a banking summit in Sydney on March 16, Dr Mulino argued that the federal government should prioritse targeted welfare enhancements and retraining initiatives over the "massive costs" associated with a universal payment system.
The tech sector is currently grappling with an existential shift as AI models, such as Anthropic’s Claude, demonstrate an ability to match professional human coders at significantly higher speeds.
The technological leap has rendered many core software skills redundant, triggering a cascade of lay-offs. Australian giant Atlassian recently announced 1,600 job cuts, while WiseTech (ASX:WTC) and Afterpay owner Block (ASX:XYZ) have moved to cull 2,000 and 4,000 staff respectively.
Experts, including UNSW AI Institute chief scientist Toby Walsh, warn that even high-flying "unicorns" like Canva may be the next to rationalise their workforce.
Mulino maintained a "benign" outlook for labour force participation, provided the government remains ambitious in helping displaced workers transition to new businesses.
"I would rather figure out if there are gaps in our current welfare system where we need to provide a better-designed safety net," he stated, suggesting this offers better value for the taxpayer dollar.