Insiders say public sector job cuts have caused many to take a new path, launching a number of new tech industry start-ups.

The generation of local entrepreneurs may come from the masses of displaced public servants, with special experience from their time working with government IT systems and networks.

Australian group Entry29, which supports internet start-ups, says it has seen a rapid rise in people wanting to join.

Applications have doubled in the last year alone.

One of Entry29’s directors, Nick McNaughton, has told ABC reporters that public sector staff often have key insights and industry knowledge to create a successful tech start-up.

“I'm an ex-public servant myself, so I certainly find a lot of like-minded people doing the same thing,” he said.

“There are some very smart people in Canberra, and sometimes they've been shackled in their role in the public service.”

Mr McNaughton says with tens of thousands of job cuts expected in coming years, now may be the perfect time to begin plotting a new path.

“We believe now is a great opportunity for them to step out, maybe take their severance package and look at creating their own successful start-up,” he said.

Obviously, not all of the public sector workers facing job cuts in this week’s budget will be able to turn their free time into an entrepreneurial success, but for some the opportunity will arise to turn their wasted talent into something that will not be bogged down by endless committees, approvals and other aspects of the bureaucratic melange.