Australia aims to be a top 10 data and digital economy and launch a space mission this decade.
A new $1 billion technology tax break announced in Tuesday's budget will reduce the cost of going digital, supporting small businesses to buy portable payment devices, cyber security systems and subscribe to cloud-based services.
The first national space mission is also central to the budget, according to Minister for Science and Technology Melissa Price.
"This budget demonstrates that we are not only shooting for the stars, but also securing our future prosperity here at home," she said.
The budget includes $1.16 billion through to 2038/39 and $38.5 million per year for the first phase of a National Space Mission for Earth Observation to design, build, and operate four new satellites.
"The information we get from Earth observation satellites is central to our everyday life - from forecasting the weather and responding to natural disasters through to managing the environment and supporting our farmers."
It is estimated the project will create more than 500 jobs over the first four years of the build phase, with an anticipated supplier network of more than 100 companies from across Australia.
Other budget measures include $124 million to make Australia a world leader in artificial intelligence through the AI Action Plan.
A $811.8 million Connecting Regional Australia Initiative aims to expand mobile coverage and improve connectivity, resilience and affordability.
More than $387 million in funding will meet Australia's commitments as co-host of the Square Kilometre Array radio telescope.
Some $42.4 million aims to grow the number of women in STEM by providing up to 500 university scholarships, co-funded with industry.
The Women in STEM Ambassador program, the Future You national digital awareness-raising initiative, and the Superstars of STEM will all continue.
A new cell broadcast national messaging system will also be established under the 2022 budget.
This system will deliver warning messages to mobile phones in near real time to more rapidly inform Australians of emergency and disaster events, such as flash flooding.
