The proposed relocation of the Sydney Startup Hub from its current location above Wynyard Station to a new site, potentially anywhere within the city’s central business district (CBD), has sparked uncertainty regarding its future whereabouts. The 12-kilometre radius surrounding Sydney’s Central Station was officially branded “Tech Central” by the New South Wales government in October of the following year.
In an unconventional announcement, New South Wales Innovation, Science and Expertise Minister Anoulack Chanthivong unveiled a groundbreaking Tech Central strategy. He pledged that this initiative would energize the innovation ecosystem, while playing a more prominent role in fostering housing, artistic industries, and the customer- and 24-hour-economy sectors.
The revised text reads: The proposed approach is anticipated to direct additional emphasis towards addressing the federal government’s diverse priorities, rather than the startup sector, which has long been primed for action since Labor took office in March 2023.
The ministry has delayed the startup’s launch by 15 months as of 2024, due to the minister’s departure from office, pending the outcome of earlier consultations initiated last year. By mid-2025, the federal government anticipates launching the Blueprint, a timeline that follows its initial unveiling roughly 18 months prior.
Considering the rapid pace of coverage expansion, it’s highly improbable that the newly introduced Tech Central Strategy will be operational by the time the Sydney Startup Hub must relocate from York Street.
New South Wales Innovation, Science, and Commerce Minister Anoulack Chanthivong
Funding NSW is set to lead the way in the eventing of this innovative technique, partnering closely with the Department of Planning, Housing and Infrastructure, as well as Transport for NSW.
The Sydney Startup Hub (SSH) is residence to Stone & Chalk, Tank Stream Labs, Fishburners, Microsoft Reactor and Antler, amongst others, and has been residence to almost 2000 startups because it was launched by the previous Coalition authorities in 2018. While previous governments had backed the SSH project due to the COVID-19 pandemic’s impact on its funding during lockdowns, the sudden shift in 2023 led to a decisive end to plans for the $10 million initiative.
The NSW Treasury conducted a thorough expenditure assessment over six months in 2023, with Chanthivong’s contribution. When the price was reduced to $50,000.
Over the past year, neither the New South Wales nor federal governments provided support to the local tech ecosystem, forcing entrepreneur Murray Hurps to rely solely on private sector assistance for the first time and launch his initiative this week.
Coincidentally, the Startup Muster report cited Stone & Chalk (1), Fishburners (2) and the Sydney Startup Hub (5) among the many most-used coworking areas.
Approximately 46% of the respondents indicated that they had been seriously considering relocating from their current residence.
Supply: Startup Muster 2024
The report further disclosed that startup employees are readjusting their work habits, with a modest decline in remote work (67%) compared to a 6% increase in coworking space utilization to 38%, marking a notable shift from the pre-pandemic levels of 55% remote work and 52% coworking space usage.
By 2023, a $5.8 million initiative from the Coalition culminated, channeling funds to corporations like Airwallex and Espresso Show, which received hundreds of thousands of dollars in support over three years, ultimately establishing themselves within the Tech Central framework.
The Shadow Minister for Innovation, Science, and Expertise, Mark Coulton, claimed that it seems the Federal Government’s strategy is to have no strategy at all?
This authority is pleased to engage in discussions with Atlassian, but regrettably declines to involve Fishburner’s representatives. The Australian government’s approach effectively encapsulates Labour’s strategy for supporting startups within the sector. For over 20 months, this uncertainty has imperiled the pipeline of early-stage ventures that New South Wales, under the coalition government, has historically nurtured, said she.
Blueprint nonetheless coming
The Australian government plans to launch its Innovation Blueprint within the next few months, which will introduce a novel accommodation model at the Tech Central Scaleup Hub, accompanied by updated services and support for businesses across all stages of growth.
The US federal government had previously committed to launching this initiative by 2024.
The Minister announced that the federal government is committed to the prosperity of Tech Central, envisioning it as a vibrant hub where groundbreaking innovations, cutting-edge analysis, and eclectic lifestyles converge seamlessly.
Surrounded by Haymarket, Camperdown, and South Eveleigh, approximately 1.5km from Sydney’s central business district, the area has long been home to a concentration of venture capital companies and tech corporations, including Canva, Afterpay, and Security Tradition, which initially took shape under the previous Coalition government’s vision.
Atlassian is currently constructing a new facility adjacent to the preparation station.
The Coalition subsequently constructed the Tech Central Scaleup Hub at 477 Pitt Street, situated above Central Station, which launched in 2021.
After nearly two years at the organization and halfway through its initial tenure, the Labor authorities are contemplating their next move. The position of government director has remained vacant since Annie Parker’s departure in March 2023 under Labour’s tenure.
Chanthivong envisions “a recent imaginative and visionary” plan for Tech Central, establishing the district as a premier hub to live and work, and positioning it as a crucial driver of NSW Government’s key priorities, including housing, healthcare, night-time economy, customer economy, and world-class transport infrastructure.
Tech Central boasts a premier tech innovation ecosystem on a national scale. While we’re pleased with Tech Central’s current status as Sydney’s hub of innovation, there’s undoubtedly scope for it to be even more effective?
The Specialist team within Funding NSW will amplify their existing efforts in funding attraction, marketing model promotion, and community building to elevate the region’s economic potential.
“We’re also providing NSW startups with the ideal environment to thrive by relocating the Sydney Startup Hub to the heart of Tech Central.”
The federal government claims that relocating the Sydney Startup Hub will enable seamless collaboration between founders, entrepreneurs, traders, corporates, and the broader innovation ecosystem with universities and research institutes conveniently located nearby, while also ensuring a smooth transition through close consultation with key stakeholders to maintain continuity, including establishing a global touchdown pad.
The New South Wales government will be tasked with securing funding and expertise for Tech Central, while also fostering greater collaboration among startups, research institutions, and universities, according to the federal government’s announcement.
Atlassian CEO Mike Cannon-Brookes joined the federal government’s announcement, emphasizing that the plan “injects vitality into Tech Central”, noting that without a community, even the most impressive precinct remains just buildings. To flourish, Tech Central should be an integral hub that harmoniously integrates with the town’s fabric, fostering synergies between work, residence, and daily life.
Interstate rivals
In marked contrast to rival states that have been proactively investing in support for the startup ecosystem, the NSW authorities’ approach appears mired in ambiguity, with a vague commitment to “probably doing one thing” sometime soon.
In the final week, startups are racing against time to secure funding from venture capital (VC) firms and establish a strong footing for their native businesses. The Victorian government invested in startups, including those founded by women, through its $10 million fund, supporting their growth and development.
In Queensland, efforts have been intensified, with proactive backing and unwavering support evident throughout the Sunshine State.
