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cPanel Issues Immediate Patches for Severe Authentication Bypass Zero-Day Vulnerability


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Brief Overview

  • cPanel has released updates addressing a critical vulnerability related to authentication bypass.
  • This issue, identified as CVE-2026-41940, carries a severity score of 9.8 on a scale of 10.
  • Malicious actors can obtain administrative access to systems via CRLF injection.
  • With 70 million domains utilizing cPanel, this is a widespread concern.
  • It’s essential for administrators to promptly update their systems with the provided script.

Insight into the cPanel Vulnerability

The recent identification of a severe flaw in cPanel’s software has created significant concern within the hosting industry. The vulnerability, known as CVE-2026-41940, allows attackers to circumvent authentication, potentially giving them administrative control over compromised systems. This issue is linked to a CRLF injection in the login and session mechanisms.

Technical Analysis

The cPanel service daemon, cpsrvd, writes session files to disk prior to completing the authentication process. By altering the whostmgrsession cookie, attackers can generate a session file that evades the password verification, enabling unauthorized access. This flaw impacts both cPanel and WHM users.

An Overview of cPanel and WHM

cPanel is a popular web-based control panel enabling website owners to efficiently manage their hosting accounts. It offers support for email, databases, file management, and domain configurations, and is leveraged by about 70 million domains worldwide. WHM, which stands for WebHost Manager, offers advanced server management functionalities.

Exploitation and Response Measures

Reports suggest that this vulnerability has been actively targeted since late March. The Canadian Centre for Cyber Security and the Australian Cyber Security Centre have both released warnings, advising administrators to implement patches without delay. cPanel has also provided a detection script to assist in identifying compromised systems.

Worldwide Impact and Action

The ShadowServer Foundation has found around 44,000 compromised cPanel instances, including 610 in Australia. The widespread nature of this vulnerability highlights the urgent need for prompt updates and careful system monitoring.

Conclusion

The CVE-2026-41940 vulnerability in cPanel poses a major threat to web hosting providers and system administrators. Given the risk of unauthorized administrative access, taking immediate action is vital. Administrators are encouraged to swiftly update systems and keep an eye out for any indications of breach.

Q: What is the CVE-2026-41940 vulnerability?

A: It is a critical authentication bypass vulnerability affecting cPanel and WHM, enabling attackers to achieve administrative access.

Q: In what way can attackers take advantage of this vulnerability?

A: Attackers exploit CRLF injection to modify session files, allowing them to bypass authentication requirements.

Q: What actions should administrators take to safeguard their systems?

A: Administrators should quickly apply the available patches and utilize the detection script to find any compromised systems.

Q: How prevalent is the use of cPanel?

A: cPanel is employed by around 70 million domains globally, making it a major target for cyber threats.

Establishing Centres of Excellence


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Establishing Centres of Excellence in Technology

Brief Overview

  • The 2026 TechBest Benchmark Awards are generously supported by PhoenixDX.
  • Pedro Carrilho, Managing Director & Founder at PhoenixDX, elaborates on the idea of Centres of Excellence (CoE).
  • CoEs are designed to foster innovation, refine processes, and enhance efficiency within organizations.
  • Primary focal points include technology integration, workforce development, and process enhancement.
  • CoEs can result in a competitive edge and improved resource allocation.

The Function of Centres of Excellence

Centres of Excellence (CoEs) have emerged as a vital tactic for organizations seeking to boost innovation and operational effectiveness. With the 2026 TechBest Benchmark Awards highlighting this idea, Pedro Carrilho from PhoenixDX shares perspectives on how CoEs operate and their advantages.

Image of Building Excellence Centres

Promoting Innovation and Efficiency

CoEs act as centers for expertise and innovation within an organization. They emphasize cultivating best practices, encouraging collaboration, and guaranteeing the effective integration of new technologies into business operations. By centralizing knowledge and resources, CoEs can speed up technology adoption and enhance overall productivity.

Essential Elements of a Centre of Excellence

Technology Integration

A key objective of a CoE is to promote the use of new technologies. This includes assessing emerging technologies and implementing those that align with the organization’s strategic vision.

Workforce Development and Training

CoEs emphasize continuous education for personnel to ensure they can utilize new tools and methodologies effectively. Ongoing training initiatives help sustain a competent workforce capable of driving innovation.

Workflow Enhancement

Improving processes is another vital role of CoEs. By examining and refining existing workflows, CoEs can boost productivity and lower expenses.

Advantages of Establishing a CoE

Organizations that create CoEs often reap numerous advantages, such as enhanced project performance, improved resource management, and fortified competitive positioning. This structured methodology promotes more strategic allocation of resources and better decision-making.

Conclusion

Centres of Excellence are crucial in contemporary organizations by driving innovation, facilitating technology adoption, and refining processes. As emphasized during the TechBest Benchmark Awards, CoEs represent a strategic advantage for any business striving to stay competitive in a fast-changing market landscape.

Q: What constitutes a Centre of Excellence?

A: A Centre of Excellence is a group or unit within an organization dedicated to establishing best practices and fostering innovation through collaboration and expertise.

Q: Why are CoEs significant for organizations?

A: CoEs are significant as they aid in streamlining processes, promoting innovation, and enhancing the uptake of new technologies, thereby giving organizations a competitive advantage.

Q: What are the essential elements of a successful CoE?

A: Essential elements include technology integration, workforce training and development, and workflow enhancement.

Q: In what way does a CoE aid resource management?

A: By centralizing resources and expertise, CoEs enable improved allocation and use of organizational resources, resulting in heightened efficiency and reduced costs.

Q: Are CoEs applicable to sectors beyond technology?

A: Yes, CoEs can be utilized across various sectors as they focus on enhancing processes and innovation, which are universally relevant needs in business.

Bunnings’ Technological Proficiency Significantly Underappreciated


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Bunnings’ Digital Evolution: A Technological Leader

Quick Overview

  • Bunnings’ technological skills are often underestimated.
  • Recent collaborations with Google showcase Bunnings’ digital strength.
  • Bunnings has unveiled an AI assistant named Buddy to improve customer experience.
  • Initially, Buddy will be available in Australia and will later expand to New Zealand.
  • Data and innovation in AI are integral to Bunnings’ expansion strategy.
Bunnings' underestimated technology expertise

Image credit: Bunnings

Bunnings’ Technological Evolution

In a recent episode of Boston Consulting Group’s Business & Beyond podcast, Bunnings’ group managing director, Mike Schneider, emphasized the often underestimated status of Bunnings’ technological initiatives. The retailer’s progress in data management and digital systems has established it as a frontrunner in the industry, drawing collaborations with technology leaders like Google.

Collaboration with Google: A Reflection of Digital Abilities

With CIOs Leah Balter and Genevieve Elliott at the helm, Bunnings has reshaped its technological framework. The partnership with Google on the agentic Gemini commerce platform showcases Bunnings’ skills and its transition from a conventional retailer to a tech-oriented business.

Meet Buddy: The AI Assistant

Earlier this month, Bunnings unveiled Buddy, an AI-driven assistant aimed at enhancing customer engagement. Initially launched on the Bunnings website, Buddy guides customers through their projects, addresses complex inquiries, and aids in product choices. The AI can read handwritten lists and swiftly add products to an online shopping cart, simplifying the purchasing process.

Plans for Expansion and Future Prospects

Buddy’s introduction on the Bunnings Australia website and application marks a strategic effort to utilize AI for better customer service. There are plans to roll out Buddy to New Zealand customers later this year. Vivek Pradhan, Bunnings’ general manager of data and AI, discussed this initiative at the Google Cloud Next ‘26 summit, highlighting the retailer’s dedication to innovation.

Conclusion

Bunnings is redefining its position in the retail sector through focused technological initiatives. By adopting AI and data-driven strategies, the enterprise is establishing new benchmarks for customer service and operational performance. With its groundbreaking projects and relationships, Bunnings is set for a future where digital excellence becomes a cornerstone of its identity.

Q: What importance does the partnership with Google hold for Bunnings?

A: This collaboration with Google highlights Bunnings’ advanced digital capabilities and reinforces its position as a leader in embracing innovative technological solutions.

Q: What is Buddy, and in what way does it enhance customer interactions?

A: Buddy is an AI-based assistant that helps customers navigate their shopping, offering project guidance and product selections.

Q: Where can Buddy be accessed currently, and what are the future expansion plans?

A: Buddy is available on the Bunnings Australia website and app, with intentions to launch in New Zealand later this year.

Q: How is Bunnings planning to leverage AI and data for growth?

A: Bunnings intends to deploy AI and data to enhance customer experiences, optimize operations, and bolster long-term growth strategies.

Q: What roles do Leah Balter and Genevieve Elliott play in Bunnings’ technological journey?

A: Leah Balter and Genevieve Elliott have been pivotal as CIOs, propelling the digital transformation and advancing Bunnings’ technological framework.

Marc Márquez Supports the New Insta360 GO 3S Motorcycle Pack


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Quick Read

  • Marc Márquez promotes the Insta360 GO 3S Motorcycle Bundle.
  • In-helmet design delivers immersive rider’s perspective and minimizes wind noise.
  • Offers 4K video capability and FlowState Stabilization.
  • Action Pod includes a 2.2-inch flip touchscreen for live previews.
  • Available in Australia for A$649.99 starting April 28, 2026.

A Champion’s Choice for POV

To infuse real racing heritage into this launch, Insta360 has joined forces with seven-time MotoGP champion Marc Márquez. As a Team Insta360 Ambassador, Márquez appears on the uniquely designed track-themed packaging.

This is more than just marketing; the champion personally utilizes this in-helmet setup to film his riding experiences. The intention is to offer a clean, immersive method to convey the sensation of riding the bike.

Marc Márquez promotes the Insta360 GO 3S Motorcycle Bundle

Why In-Helmet Beats External Mounts

Installing the camera within the helmet provides numerous benefits over traditional suction cup or adhesive mounts placed externally. Positioned right before the rider’s eyes, the footage seamlessly tracks where the rider is focusing, delivering a far more authentic experience for viewers.

In addition to the visuals, the in-helmet placement greatly diminishes wind noise, which is a consistent adversary for motorcycle vlogs. With the camera protected by the helmet’s visor and shell, the microphones can effectively capture the engine’s raw sounds.

Small Camera with 4K Punch

Weighing in at just 39g, the GO 3S is packed with technology essential for high-speed riding. It supports 4K ultra-clear video, rendering the sharp detail necessary to capture the road’s texture and the rapidly passing scenery.

Stability is maintained by Insta360’s FlowState Stabilization and 360 Horizon Lock. These features collaboratively ensure your footage remains smooth and the horizon straight, even during cornering or traversing bumps.

Smart Tools for the Road

Creativity while riding frequently requires a “set and forget” mentality, and the GO 3S comes with various tools to facilitate that. The Action Pod features a 2.2-inch flip touchscreen, enabling live previews and remote adjustments without needing to remove the camera from the helmet.

The battery life is also remarkable for such a compact device, providing up to 140 minutes of recording time when used with the Action Pod. For those who prefer a more streamlined setup, approximately 38 minutes of recording is available when the camera is operated alone.

Marc Márquez promotes the Insta360 GO 3S Motorcycle Bundle

AI Editing and Cinematic Effects

For individuals eager to upload their clips to social media swiftly, the app incorporates AI Editing capabilities. The software automatically identifies highlights, syncs them with music, and generates a shareable edit in seconds.

Another exciting feature for riders is Motion ND, which allows you to incorporate cinematic motion blur with just a tap in the app. This adds a sense of speed to your footage without necessitating the use of physical ND filters.

Price and Availability in Australia

The Insta360 GO 3S Motorcycle In-Helmet POV Bundle is an all-inclusive kit for riders aiming to elevate their content creation. It provides a unique viewpoint that was previously challenging to obtain without a custom setup.

The package includes the 128GB version of the Insta360 GO 3S in Black, ensuring ample storage for extended rides. Considering the special edition packaging and dedicated mount, it offers excellent value for motorcycle aficionados.

The Insta360 GO 3S Motorcycle In-Helmet POV Bundle will be available worldwide beginning April 28, 2026. For Australian consumers, the bundle will be priced at A$649.99.

For further details, visit http://www.insta360.com

Summary

The Insta360 GO 3S Motorcycle In-Helmet POV Bundle presents an innovative option for motorcycle enthusiasts seeking to document their rides from a genuine rider’s perspective. With Marc Márquez’s endorsement, 4K video capabilities, and an array of smart features, this bundle is poised to transform motorcycle filming.

Q: What distinguishes the Insta360 GO 3S camera?

A: Its compact dimensions and in-helmet mounting create an immersive filming experience with 4K resolution and less wind noise.

Q: How does the in-helmet design assist riders?

A: It provides a more authentic POV and enhanced audio quality by minimizing wind noise and aligning with the rider’s line of sight.

Q: What is the battery duration of the Insta360 GO 3S?

A: With the Action Pod, it delivers up to 140 minutes of recording time, and about 38 minutes when used independently.

Q: When will the bundle launch in Australia, and at what cost?

A: It will be released on April 28, 2026, priced at A$649.99.

Federal Government Faces Major M365 Licensing Reformation


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Brief Overview

  • Federal government agencies to acquire separate Microsoft 365 licences starting July.
  • New framework under VSA6 intends to ensure consistent pricing and limit increases.
  • Data#3 will help agencies transition to the new licensing structure.
  • Transition is part of a five-year contract with Microsoft.

Microsoft 365 Licensing Changes for Federal Government

Australian government faces M365 licensing overhaul

Shift to Individual Agency Registrations

Beginning in July, the federal government will initiate a major shift in the management of Microsoft 365 licences. Through the new Volume Sourcing Agreement (VSA6), each agency will be required to procure enterprise registrations on an individual basis, deviating from the former pooled licensing approach.

Previous Licensing Structure

In earlier agreements, the government utilized a pooled system where all agencies functioned as a single customer. This approach provided flexibility as increases in licence consumption by some agencies could be offset by reductions in others.

Revised Licensing Setup

The VSA6 introduces a modification that mandates agencies to directly request the number of licences they require from Data#3, the selected Microsoft licensing partner for the government. This transition necessitates that agencies adjust both administratively and technically to a new system based on reservations.

Assistance for Transition

The government has set aside $8.25 million for a “QSFS mobilisation service” to support agencies throughout this transition. Data#3 will offer essential assistance to guarantee a seamless transition to the new licensing model.

Commercial Results and Price Consistency

Even with these transitions, the Digital Transformation Agency (DTA) guarantees that VSA6 will preserve overall government pricing advantages. The agreement offers stable pricing with limited increases, aiming to protect the Australian Public Service from fluctuations in the global market.

Conclusion

The federal government’s transition from a pooled Microsoft 365 licensing model to independent agency registrations under VSA6 signifies a considerable change in both administrative and technical procedures. Although agencies now need to handle their own licences, the DTA ensures sustained commercial advantages, including stable pricing and protection from worldwide price fluctuations.

Q: What is VSA6?

A: VSA6 is the sixth Volume Sourcing Agreement established between the federal government and Microsoft, governing the acquisition of Microsoft 365 licences over a five-year period.

Q: How does the new licensing framework impact agencies?

A: Agencies are now required to independently reserve and manage their Microsoft 365 licences rather than depending on a communal pool, necessitating adjustments to administrative and technical processes.

Q: Who is Data#3?

A: Data#3 is the designated Microsoft licensing solution provider for the government, tasked with facilitating the transition to the revised licensing model.

Q: What are the financial effects of VSA6?

A: VSA6 aims to provide consistent pricing and limited increases throughout its duration, reducing the influence of global price variations on the Australian Public Service.

Q: How will the government assist agencies during this transition?

A: The government has initiated an $8.25 million fund to aid agencies in transitioning to the new reservations-based licensing system through Data#3.

Queensland Government Broadens Digital Licence Credentials


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Brief Overview

  • The Queensland government enhances its digital licence application to encompass additional accreditation categories.
  • New inclusions consist of 15,000 traffic controllers and 6,500 drivers of hazardous materials.
  • The application presently accommodates 19 digital credentials, used by over 1.3 million individuals in Queensland.
  • This initiative seeks to offer adaptable and contemporary access to government services.

Digitalisation of Traffic Controller and Hazardous Goods Driver Licences

The Queensland government has recently broadened its digital licence offerings to include certifications for 15,000 traffic controllers and more than 6,500 hazardous goods drivers. This development follows last month’s integration of Queensland Building and Construction Commission (QBCC) licences, which involved nine licence categories and 105,000 tradespeople.

Qld government digitises additional licence credentials

Adoption and Future Aspirations

The digital licence application has been embraced by over 1.3 million Queensland residents and currently supports 19 distinct digital credentials. As stated by Steve Minnikin, the Minister for Customer Services and Open Data, the intention is to offer Queenslanders flexible, contemporary methods for accessing government services, whether through digital means or traditional channels. The government has shown its commitment to progressively incorporating additional credential types into the app.

Advantages of Digitalisation

Through the digitalisation of licences, the Queensland government seeks to improve the convenience and security with which individuals manage their credentials. Traffic controllers and hazardous goods drivers are vital to maintaining the safety and effectiveness of the state’s roadways and economy, and having their credentials readily available and secure is an important benefit.

Conclusion

The Queensland government is promoting its effort to digitalise licences by integrating more accreditation types into its digital licence application. This initiative intends to enhance accessibility and security for a range of professionals while ensuring modernised service delivery to the residents of Queensland.

Q: Which new licences have been included in the Queensland digital licence app?

A: Licences for 15,000 traffic controllers and over 6,500 drivers of hazardous materials have been incorporated.

Q: How many digital credentials does the application currently accommodate?

A: The app currently accommodates 19 digital credentials.

Q: How many Queensland residents have adopted the digital licence application?

A: More than 1.3 million Queensland residents have adopted the app.

Q: What is the aim of the digital licence initiative?

A: The aim is to provide flexible, modern methods for accessing government services, catering to both digital and traditional preferences.

Q: Will additional credential types be incorporated into the app in the future?

A: Yes, the government has indicated that it will continue to add more credential types over time.

“Concealed Weakness: Linux Privilege Escalation Flaw Found in Kernel Since 2017”


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Linux Kernel Vulnerability: An Old Threat Uncovered

Brief Overview

  • A flaw in the Linux kernel, named “Copy Fail,” enables non-privileged users to obtain root access.
  • This issue affects popular Linux distributions such as Ubuntu, Amazon Linux, and Red Hat Enterprise Linux since 2017.
  • Copy Fail stands out because it does not require race conditions or specific offsets pertaining to kernel versions to exploit.
  • A 732-byte Python script can leverage the vulnerability across different distributions without modifications.
  • A remedy has been implemented to undo the performance enhancement that triggered the problem.
  • Organizations that cannot patch immediately should block the algif_aead kernel module.

Old Vulnerability in Linux Kernel Unveiled

'Copy Fail' vulnerability in Linux kernel since 2017

The Revelation and Consequences

The Linux community was recently informed of a critical security vulnerability, CVE-2026-31431, referred to as “Copy Fail.” This vulnerability, assessed at 7.8 out of 10 in severity, has been concealed within the Linux kernel since 2017. Impacting various distributions including Ubuntu, Amazon Linux, and Red Hat Enterprise Linux, this flaw permits non-privileged local users to escalate their privileges, potentially obtaining root access.

Mechanics of the Exploit

Contrary to other notable Linux vulnerabilities like “Dirty Cow,” Copy Fail does not depend on race conditions or kernel-version-specific offsets. The exploit is carried out through a 732-byte Python script that stays the same across the distributions tested. The vulnerability stems from a combination of kernel modifications from 2011 to 2017, leading to a performance enhancement that rendered memory regions susceptible.

Technical Analysis

The core of the problem originates from the 2017 changes to algif_aead.c, which began utilizing the same memory region for input and output during the decryption process. This, paired with a defect in the authencesn cryptographic template, permitted a controlled 4-byte write to the kernel’s memory cache, thereby jeopardizing security.

Kubernetes Container Escape Issues

The vulnerability is not limited to individual processes, impacting Kubernetes environments as well. The shared page cache on Linux hosts can enable a compromised pod to modify a setuid binary, potentially breaching tenant boundaries in Kubernetes configurations.

Preventive Measures and Suggestions

A remedy was introduced in the mainline kernel on April 1, reverting the flawed 2017 optimization. Theori advises that organizations unable to patch immediately should block the algif_aead kernel module, a step expected to have minimal impact on most systems.

Conclusion

The Copy Fail vulnerability in the Linux kernel poses a significant security risk, particularly given its potential ramifications for various Linux distributions and Kubernetes environments. While a solution is available, prompt action is urged for those unable to update their systems quickly.

Questions & Answers

Q: What exactly is the Copy Fail vulnerability?

A: Copy Fail is a privilege escalation issue in the Linux kernel that enables non-privileged users to gain root access, affecting distributions since 2017.

Q: Which Linux distributions are impacted?

A: The vulnerability affects major distributions such as Ubuntu, Amazon Linux, and Red Hat Enterprise Linux.

Q: How can organizations address this vulnerability?

A: Organizations that are unable to patch right away should block the algif_aead kernel module to mitigate the threat.

Q: Is there a patch for Copy Fail?

A: Yes, a fix is included in the mainline kernel, reversing the 2017 optimization that led to the problem.

Q: Does this vulnerability impact Kubernetes environments?

A: Yes, it can influence Kubernetes environments by allowing compromised pods to modify setuid binaries across tenant boundaries.

Visual Insights: Steering Through Data Sovereignty in the AI Age – Synology Roundtable


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Brief Overview

  • Data sovereignty in the age of AI: A multifaceted challenge for businesses.
  • Handling unstructured data is vital for AI preparedness.
  • Infrastructure selections directly influence cost and performance.
  • Synology’s offerings provide insights into efficient data oversight.

Grasping Data Sovereignty in the Age of AI

As advancements in artificial intelligence progress, data sovereignty has surfaced as a vital concern for businesses. With data traversing borders more often than before, organizations face the challenge of ensuring adherence to diverse regulations across various regions. The notion of data sovereignty indicates that data is governed by the laws and regulatory frameworks of the country where it is gathered.

The Difficulties of Handling Unstructured Data

Unstructured data—information lacking a predefined structure—constitutes the bulk of data generated today. This encompasses everything from textual documents to various media files. Successfully managing this kind of data is crucial for organizations aiming to utilize AI technologies. Effective data management approaches can empower businesses to realize the full capacity of their data while adhering to data sovereignty regulations.

Infrastructure Selections and Their Consequences

The infrastructure decisions organizations undertake can notably affect their capacity to remain AI-ready and forecast expenses in the long run. Companies must evaluate the scalability, adaptability, and security of their data storage options. Synology, a pioneer in data management solutions, offers insights into how organizations can make knowledgeable infrastructure choices that meet their data sovereignty requirements.

Investigating Data Sovereignty in the AI Era with Synology

Conclusion

Data sovereignty is becoming more significant in the AI era as businesses navigate intricate regulatory frameworks. The management of unstructured data and thoughtful infrastructure decisions are fundamental to achieving AI readiness and cost-effectiveness. Synology’s solutions offer essential guidance for organizations looking to improve their data management strategies.

Q: What is data sovereignty?

A: Data sovereignty refers to the principle that data is governed by the laws and regulations of the nation where it is collected. This necessitates that businesses comply with local laws while managing data.

Q: Why is it vital to manage unstructured data?

A: Managing unstructured data is important because it represents the majority of today’s generated data. Effective management enables organizations to effectively capitalize on AI technologies while ensuring compliance with data sovereignty laws.

Q: What impact do infrastructure choices have on AI readiness?

A: Infrastructure choices affect AI readiness by influencing aspects such as scalability, adaptability, and security. Selecting appropriate data storage solutions allows organizations to manage large data volumes efficiently and respond to evolving needs.

Q: What is Synology’s role in data management?

A: Synology provides data management solutions that aid organizations in making well-informed infrastructure decisions. Their proficiency helps businesses align their data management practices with the requirements of data sovereignty.

ABA Alerts Major Tech Tax Disparity Poses Risk to Payment Systems


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Concise Overview

  • The Australian Banking Association (ABA) warns of potential risks to national payment infrastructures due to a tax and regulatory divide between banks and major tech firms.
  • Financial institutions pay significantly more in taxes compared to technology giants such as Meta, Apple, and Alphabet.
  • The ABA points out that unregulated Buy Now Pay Later (BNPL) entities impose much steeper charges on businesses than traditional banks.
  • Apple faces criticism for stifling competition and having lesser tax responsibilities in spite of its vast market value.
  • The ABA advocates for a viable system where all participants contribute equitably to infrastructure and consumer safeguards.

Discrepancies in Regulation and Taxation within Payment Systems

The Australian Banking Association (ABA) has issued warnings about the widening gap in taxes and regulations between conventional banks and large multinational tech companies. As banks heavily invest in infrastructure and consumer protections, tech firms are perceived as evading these essential responsibilities.

ABA warns tax gap threatens payment systems

Tax Contributions: Traditional Banks vs. Tech Giants

The ABA reported that in 2025, Australian banks contributed a significant $16 billion in taxes and levies, while tech giants Meta, Apple, and Alphabet collectively paid only $324 million. ABA CEO Simon Birmingham stressed the inequity of the existing system, warning that it jeopardizes the nation’s payment infrastructure.

Fees from Unregulated BNPL Providers

The report further revealed that unregulated Buy Now Pay Later (BNPL) firms charge transaction fees to businesses that are much higher than those levied by banks, with certain fees reaching up to 11 times more. This significant difference creates difficulties for small businesses, which encounter elevated costs for transaction processing.

Apple’s Role in Digital Wallet Market

Apple was specifically called out by the ABA for hindering competition in the realm of digital wallets on its devices. Birmingham noted that while banks have placed caps on transaction returns on iPhones, Apple’s own returns remain unrestricted, thereby stifling competition and innovation within the sector.

Conclusion

The Australian Banking Association is advocating for more equitable tax and regulatory frameworks to ensure the ongoing viability of national payment systems. The current imbalances between banks and large tech companies pose a threat to the maintenance of infrastructure and fair competitive practices.

Q: What concerns does the ABA have regarding the tax disparity between banks and tech corporations?

A:

The ABA is worried because banks are making substantial investments in infrastructure and consumer protection while tech corporations pay lower taxes and face less stringent regulations, which could endanger national payment systems.

Q: How do the fees from BNPL providers match up against banks’ fees?

A:

Fees charged by BNPL providers are notably higher than those of banks, with some fees being as much as 11 times greater, creating a financial strain on small businesses.

Q: What criticisms has the ABA directed at Apple?

A:

The ABA has reproached Apple for curtailing competition by imposing limitations on banks’ transaction returns while maintaining its own fee structure flexible, thus restricting competition in the digital wallet space.

Q: What recommendations has the ABA put forward?

A:

The ABA advocates for establishing a sustainable framework where all market entities fairly contribute to taxes and regulations, thereby ensuring strong infrastructure and consumer protection.

Q: How do transaction fees of Australian banks compare to those of foreign providers?

A:

Australian banks typically impose lower transaction fees than numerous international providers, presenting a cost-effective option for businesses.

Australia to Enforce 2% Tax on Major Tech Firms Lacking Local News Deals


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Brief Overview

  • The Australian government suggests a 2.25% tax on domestic earnings of major tech firms lacking news agreements.
  • This tax aims to bolster local journalism by allocating resources to news organizations.
  • The measure supersedes the 2021 regulations requiring payments for news content.
  • Implementation is projected for the 2025-26 fiscal year.
  • Tech giants such as Meta, Google, and TikTok may incur extensive fees.
  • Prime Minister Anthony Albanese highlighted Australia’s independence in policy-making.

Overview of the News Bargaining Incentive

The proposed News Bargaining Incentive by the Australian government entails a 2.25% tax on the revenue of major technology companies like Meta, Google, and TikTok, unless these platforms secure deals with local news providers for content shared on their respective services. The collected funds will be allocated to support journalism across Australia.

Australia's levy on tech firms without news agreements

Reasoning Behind the Levy

Communications minister Anika Wells remarked that as individuals increasingly depend on platforms such as Facebook, TikTok, and Google for news, it is reasonable for these companies to support the journalism that fills their platforms. This levy is designed to incentivize these platforms to reach agreements with news organizations, thereby aiding in the sustainability of the news sector.

Superseding Ineffective Legislation

This new approach aims to replace the 2021 laws that mandated tech companies to compensate for news content. The government asserts that those regulations are no longer functioning effectively. The News Bargaining Incentive also provides greater incentives for agreements with smaller news organizations, promoting a wider distribution of support within the industry.

Global Repercussions and Reactions

While former US President Donald Trump has voiced opposition to digital service taxes targeting American tech giants, threatening tariffs on countries that enact them, Prime Minister Anthony Albanese has asserted Australia’s right to make choices that serve its national interests. The government remains steadfast in its commitment to local journalism and the independence of its policy-making.

Conclusion

The Australian government’s initiative to impose a 2.25% levy on tech giants without news agreements highlights the imperative to support local journalism. By reallocating the funds from this levy to news organizations, the proposal seeks to replace outdated regulations and ensure that tech platforms contribute to the content they profit from. The initiative, slated to commence in the 2025-26 fiscal year, underscores Australia’s dedication to maintaining its media landscape.

FAQs

Q: What constitutes the News Bargaining Incentive?

A: It is a proposed 2.25% tax on the domestic revenues of tech giants that do not have agreements to compensate local media for news content.

Q: When is the levy scheduled to take effect?

A: The levy is anticipated to commence in the 2025-26 fiscal year, starting July 1.

Q: How is this proposal distinct from the 2021 legislation?

A: The new initiative supersedes the 2021 laws by creating a financial incentive for tech companies to negotiate with news organizations, providing larger offsets for agreements with smaller outlets.

Q: What are the repercussions if tech companies fail to comply?

A: Non-compliance will result in a 2.25% tax on their domestic revenues, with proceeds going towards local journalism support.

Q: What has been the international response?

A: Despite pushback from individuals like former US President Donald Trump, Australia is resolute in prioritizing its national interests and the independence of its policy decisions.

Q: What is the intention behind the levy?

A: The levy seeks to ensure that tech platforms contribute to the journalism that enhances their services and assists in the sustainability of local media outlets.