Overview

Australia’s digital economy is a significant and expanding contributor to national prosperity. In 2018, digital trade was estimated to contribute around A$43 billion to the Australian economy, with projections suggesting this could reach A$192 billion by 2030 as digital adoption deepens across industries. During 2021 to 2022, digital activity increased by around 8.6 per cent, generating approximately US$6.5 billion in additional revenue. The Australian information and communications technology market is valued at around US$112 billion, with cybersecurity accounting for approximately US$5 billion in 2022 and expected to expand substantially over the coming decade. Value added activity associated with digital trade is concentrated in information, media and telecommunications, professional, scientific and technical services, wholesale trade, and retail trade, reflecting the broad integration of digital tools across the economy.

Agreements and Frameworks

Australia’s digital trade environment is governed by a combination of domestic policy frameworks and international trade agreements that aim to reduce barriers, promote interoperability, and build trust in digital transactions.

Internationally, Australia has been active in embedding digital trade rules into its trade agreements. The Australia Singapore Digital Economy Agreement, signed in 2020, is Australia’s most comprehensive digital agreement and is often cited as a global benchmark. It includes commitments to prohibit data localisation requirements subject to limited exceptions, bans customs duties on electronic transmissions, and protects intellectual property such as software source code. The agreement also promotes cooperation on digital identity, e invoicing, and artificial intelligence, supporting interoperability between regulatory systems.

Digital trade provisions are also embedded in broader trade agreements. The Comprehensive and Progressive Agreement for Trans Pacific Partnership includes high standard rules on cross border data flows, electronic authentication, and consumer protection, which Australia continues to champion in regional forums. The ASEAN Australia Digital Trade Standards Initiative supports alignment of digital standards across Southeast Asia, reducing regulatory friction and facilitating digital trade in a region that is central to Australia’s trade interests.

At the multilateral level, Australia chairs the WTO’s Joint Statement Initiative on E-Commerce and contributes to digital trade policy development through the Organisation for Economic Cooperation and Development.

At the domestic level, the Digital Trade Strategy released in 2022 sets out Australia’s approach to shaping global digital trade rules that support commercial outcomes and counter digital protectionism. The strategy emphasises open data flows, high standards for digital trade rules, and cooperation with like minded partners. Cybersecurity policy is a key enabler of digital trade. Australia’s 2023 to 2030 Cyber Security Strategy focuses on protecting critical infrastructure, strengthening resilience against cyber threats, and ensuring Australia has the capability to manage emerging risks in a highly digitised economy. The Data and Digital Government Strategy provides a framework for a user centric and data driven public sector by 2030, supporting trust in digital services and cross border data use. The Consumer Data Right further underpins digital trade by giving consumers greater control over their data, initially in the banking and energy sectors, and establishing standards for secure data sharing

Trade

Australia’s digital trade is reflected primarily in services trade, supported by trade in ICT goods and digitally ordered products. The shift from physical documentation to electronic processes and real time data transmission has reshaped how Australian firms engage with international markets.

Exports

Australia exports a wide range of digital services and products, including software, applications, digital content, and professional and consultancy services delivered online. Digitally deliverable services account for a substantial share of Australia’s total services exports, with strong demand from the United States, the United Kingdom, Japan, Singapore, China, and New Zealand. Key export categories include professional, scientific and technical services, financial services, telecommunications and computer services, and education services delivered through online platforms.

Imports

Australia is a significant importer of digital services and digital content, reflecting strong domestic demand for advanced technology and online platforms. The United States is Australia’s most important digital trade partner on the import side, with US firms acting as major suppliers of software, cloud services, digital advertising, and platform based services. Australia is considered a mature market for US technology providers, and US firms are often preferred suppliers for government and large enterprise contracts.

Under the Australia United States Free Trade Agreement, software imports are tariff free, supporting access to digital tools and services at competitive prices. Across the economy, imported digital activity is dominated by demand for support services, which account for around 39.8 per cent of digital service imports, followed by wholesale e commerce and telecommunications services. Imports of ICT goods such as computers, networking equipment, and electronic components also underpin digital trade by enabling data infrastructure and service delivery, with East Asia remaining the primary source of these goods.

Digital trade has become an integral component of Australia’s international trade profile, supporting economic growth, productivity, and diversification across sectors. Strong domestic policy settings, high standard digital trade agreements, and deep integration with global markets underpin Australia’s digital trade performance. As digital technologies continue to reshape production, consumption, and cross border exchange, digital trade will remain closely linked to Australia’s broader economic engagement with the world.

Readers seeking further information may consult the Department of Foreign Affairs and Trade’s publications on Digital Trade and the Digital Economy and the Digital Trade Strategy, the Export Council of Australia’s Future of Australia’s Trade and the OECD’s Digital Trade resources.