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Tax and superannuation
An efficient tax and superannuation system aims to reduce unnecessary costs on the economy, while raising revenue to fund critical government services. The government is investing in 5 major projects in this sector, with a combined value of $803.4 million.
One project in this sector is helping to safeguard workers’ entitlements and address the systemic issue of employers not paying or underpaying Superannuation Guarantee (SG) entitlements. Another project is improving data availability and access to tools to improve the efficiency and effectiveness of Australian Taxation Office (ATO) staff. This will enable enhanced data matching to minimise the need for staff to manually identify unpaid SG, while also reducing the reporting burden for employers.
Investment in new ATO systems has streamlined the process of managing tax requirements, supporting the introduction of lower tax concessions for people with large total superannuation balances. Reforms aim to enhance the robustness, equity and sustainability of the retirement savings system, benefiting a broader range of Australians and supporting retirees. Further initiatives are enhancing the ATO’s capability to defend against cyber attacks, ensuring the confidentiality, integrity and availability of internal systems and data.
Another project is making sure the ATO can meet the ICT and data requirements to support a global initiative to tackle multinational tax avoidance.[CL28] [CY29]
Some of the technological foundations for such projects within the tax and super sector were laid through a previous ATO data centre project (see case study on page xx).
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Industry, infrastructure and business
A primary role of government is improving quality of life for Australians through investing in domestic productivity. To this end, the government is investing $657.9 million across 11 projects in the industry, infrastructure and business sector.
The projects are:
- enhancing business interactions with government by automating and simplifying processes to reduce time and complexity
- improving reporting processes to meet community standards of transparency and fairness, which benefits business tenders
- enhancing cyber security, functionality and operational sustainability to enable the Australian Government to regulate, support and oversee domestic businesses – promoting economic growth and transparency
- addressing gaps in existing processes, ensuring timely payments to small businesses and grants to states and territories, and simplifying engagements between government and small to medium enterprises.
Geospatial digital projects are improving diverse areas like climate reporting, water, geography and demographics. Collaboration with foreign entities is boosting Australian research in climate change, clean energy and agricultural productivity. A partnership with the United States is leveraging expertise in crucial areas for Australia. Enhancing ICT capabilities to support Australian science and foreign affairs management is paving the way for future business and employment opportunities.
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Agriculture and trade
Agriculture and trade are essential to the Australian economy, providing producers and businesses with access to the international markets and contributing to the nation’s high standard of living. To create the right support for the sector, the government is investing in 12 projects ($1.1 billion) to transform import and export processes.
Various agencies are making digital improvements, integrating machine learning into existing processes and developing platforms to support digital verification of trade documents.
A digitisation initiative is modernising Australia’s agricultural export systems. Streamlining existing processes will alleviate administrative and operational burdens for businesses and will reduce the costs associated with exporting goods.
Other projects ensure compliance with a complex network of international obligations through enhanced information sharing and simplified system interactions. By enhancing security and functionality they enable secure, flexible and scalable business operations and initiatives supporting Australia’s:
- international trade
- cooperation
- regulatory missions.
This will improve interconnectivity across agencies and create flexibility to implement new programs, while maintaining the security advantages of an enclosed system.
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Social services
The social services sector plays a crucial role in supporting the wellbeing of Australians by providing essential services that address a broad spectrum of community needs. The government is investing $621.3 million across 8 projects in this sector to modernise the delivery of social services, ensuring they are more efficient, accessible and better aligned to the needs of Australians.
Important initiatives to improve outcomes for people with disability include:
- bringing together de-identified data from the Australian, state and territory governments to enable a better understanding of the life experiences and outcomes of people with a disability across Australia
- increased support for people with disabilities in securing employment
- improving capability to protect people with disabilities from abuse, violence, neglect and fraud[TG30] [AC31] [TG32] [CY33] [AC34] .
Another project is transforming how Australians access government services by providing a secure and efficient way for individuals to verify their identity online. [CL35] [CY36]
Further significant investments are modernising digital services to support veterans, streamlining the claims administration process and ensuring timely delivery of payments to assist veterans and their families.
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Government
For the Australian Government to fulfill its commitment to delivering value through its digital and ICT‑enabled projects, it needs to have robust internal processes and systems to support its operations. To support this, a total of $1.2 billion has been invested in the government sector across 12 projects.
Modernised systems are crucial for the APS to effectively and efficiently manage its responsibilities. They are needed to ensure Commonwealth agencies comply with cyber security policies. They also minimise vulnerabilities and protect sensitive information from potential attacks.
Current digital architecture and ageing technology cannot support increased demand or maintain compliance.
ICT capability projects range from work to support election services to national data collection, they:
- enhance cyber security and reliability across several Commonwealth agencies, reducing shared cyber risks and aligning with government policies
- upgrade systems to meet digital standards, enhanced service delivery and efficiency and reduce errors
- ensure the integrity of collected data to lead to more comprehensive insights supporting the development of policy and distribution of funds and services. [MW37]
Across all sectors, consistent quality and timeliness of reporting to project decision-making bodies is essential for effective decision-making. To support this, the DTA is trialling a new standard for project data reporting (see Improving data collection across government). The trial aims to enhance the quality, consistency, and visibility of critical project information, ensuring that decision-making bodies have the necessary information.
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Delivery confidence by sector
The[CL38] largest proportion of Tier 2 projects reporting a delivery confidence of Medium-High and above are in the environment and government sectors. Projects within these sectors are reporting as on track to deliver expected benefits. The Healthcare and aged care sector has the largest proportion of Tier 1 projects reporting a delivery confidence of Medium or lower. This is mainly due to capacity and legislative constraints. The Safety of Australians sector has the largest proportion of Tier 2 projects reporting a delivery confidence of Medium and lower. Technical constraints, resourcing and funding pressures are contributing to delivery stress within this sector.
The DTA is working closely with the Department of Health and Aged Care to support the successful delivery of investments in this area. This support includes carefully managing pacing of new investments where it could compete with an already crowded delivery landscape.
Securing a skilled workforce will remain challenging with agencies needing to invest in new approaches to building capability in areas experiencing skill shortages. When planning and scheduling digital investments, it is crucial to account for the capabilities required to ensure that projects have sufficient resources to deliver[CL39] [CY40] .
Across all sectors, digital projects can prove challenging to deliver successfully but policy reforms improve and even save the lives of Australians and remain critical.
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Enabling project success through good assurance
Since 2021, the Australian Government has invested in strengthening central oversight of digital projects. This central oversight works to ensure best practice is systematically applied as digital projects are designed and delivered across agencies. By driving the adoption of best practice, central oversight plays a key role in giving each digital project the best chance of success.
The Assurance Framework for Digital and ICT Investments mandates global best practice in the use of assurance for digital projects. While assurance doesn’t in itself deliver outcomes, effective assurance is critical to good governance and decision-making. All projects in this report are subject to the Assurance Framework and must apply its ‘key principles for good assurance’. These principles draw on global best practice and, when applied effectively, provide confidence that digital projects will achieve their objectives, without leading to excessive levels of assurance.
The Assurance Framework also includes escalation protocols to support agencies to resolve delivery challenges digital projects might encounter. Central oversight of assurance also ensures that lessons learned from across digital projects are systematically incorporated into the design and delivery of future projects to reduce the risk of delivery issues arising in future.
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Projects are delivering benefits for Australians across 9 sectors
Across these sectors, digital projects deliver outcomes by leveraging technologies, with many also involving non-digital spending. Projects replacing legacy systems and boosting cyber security can spend 100% of their budgets on technology, while other projects that enable organisational transformation and service improvement often involve a significant non-digital component.
For the projects included in this report, on average about two-thirds of the total project budget relates directly to digital technologies with one-third going to non-digital spending.
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Chart header: 'Projects are delivering benefits for Australians across 9 sectors'.
The chart provides a breakdown of active projects by sector, with 9 sectors worth a total project budget of $12.9 billion.
The chart demonstrates that more than fifty percent of spending ($8.0 billion) is associated with health and aged care, the safety of Australians, and resources and the environment.
The chart further represents the breakdown of active projects by sector, according to their investment value, expressed as a percentage. Demonstrating that:
- $4.2 billion (33%) is invested in Resources and Environment
- $1.9 billion (15%) in Safety of Australians
- $1.9 billion (15%) in Health and Aged Care
- $1.2 billion (9%) in Government
- $1.1 billion (8%) in Agriculture and Trade
- $0.8 billion (6%) in Tax and Super
- $0.7 billion (5%) in Industry, Infrastructure and Business
- $0.6 billion (5%) in Social Services and
- $0.5 billion (4%) in Education and Employment.
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Across these sectors, digital projects deliver outcomes by leveraging technologies with many also involving non-digital spending. Projects replacing legacy systems and boosting cyber security can involve 100% of their budgets being spent on technology, while other projects that enable organisational transformation and service improvement often involve a significant non-digital component.
For the projects included in this report, on average about two-thirds of the total project budget relates directly to digital technologies with one-third going to non-digital spending.
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Case study: Safety of Australians
Services Australia: Passkey technology strengthens myGov security
At a glance
Tier 3
$5.6 million investment (Digital $3.3 million)
Over 500,000 users
my.gov.au/passkeysSummary
The Phishing Resistant Credentials in myGov Project has delivered passkey technology to prevent phishing-related attacks on myGov accounts.
Phishing attacks deceive individuals by posing as trusted organisations to obtain their login details. Recently, myGov has seen a significant rise in such impersonation scams.
In June 2024, Services Australia delivered a phishing- resistant sign in credential known as a ‘passkey’ to myGov. Individuals can now disable their myGov password and use a digital ID (Digital Identification) or passkey instead. This helps prevent scammers from accessing myGov accounts with stolen credentials or phishing scams.
Passkeys use the latest in cryptographic keypair technology and are simple to set up and use with a myGov account.
Using a passkey and disabling a password makes myGov accounts resistant to phishing attacks because the passkey only works with the website or app it is created on, which means it will not work on a phishing website.
Keys to success
To successfully deliver this project, Services Australia:
- conducted social market research to understand user, community and stakeholder attitudes towards security and sign in options, awareness of passkeys and potential drivers and barriers to adoption
- based the technical build on use and adoption of open, industry leading authentication standards
- implemented user centred design based on myGov user experience
- employed iterative testing, integrating testing with all myGov member services, using a 3-month private beta with hundreds of users, releasing via a soft launch in June 2024.
In the first week, more than 20,000 myGov users set up a passkey. By the end of December 2024, over 500,000 users had a passkey connected to their myGov account and over 200,000 had turned off their myGov password.
This is one of the first digital government services in the world to implement passkeys.
Off"It’s so simple and easy to use and I feel all of my myGov information is safe from hackers."
myGov user
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More projects have come under central oversight
In the past year, more projects have come under central monitoring and oversight as part of the Australian Government’s Digital and ICT Investment Oversight Framework.
This world-class framework is designed to ensure digital projects are strategically aligned, carefully prioritised, meet digital policies and standards, and realise expected benefits for Australians.
The IOF starts with setting a clear strategic direction with this direction then reinforced throughout the lifecycle of project design, funding and implementation. Throughout this lifecycle, best-practice digital policies and standards set clear requirements with agencies supported to meet these requirements by the DTA.
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Ensuring digital projects are well designed
The DTA works with agencies to ensure robust and defensible proposals for spending on all new digital projects. Each proposal must align with the government’s strategies, policies and best practice digital standards as part of the Digital Capability Assessment Process (DCAP).
For complex, high-risk and high-cost digital projects, the DTA offers additional support through the ICT Investment Approval Process (IIAP). This involves working with agencies to develop and mature implementation planning to support success. A comprehensive business case must clearly demonstrate the need for funding, based on thorough policy development, a well-planned approach to delivery and mechanisms for reviewing project progress. This process aids government decision-making on whether to fund large and complex digital project proposals.
Since the last report in 2024, 54 projects entered central oversight, and 32 left. A further 56 projects that reported in 2024 continued under oversight this year.
Central oversight now covers 110 active projects, up by 22, with an additional $6.7 billion in investment
Note: Since February 2024, 32 projects have left central oversight. Of these, 20 have closed, 10 now fall outside the scope for assurance oversight and one has been absorbed by an existing project. One project that reported as active in February 2024 closed prior to the release, however, continued to receive advice and assurance on closure activities, and was reported as active for this purpose.
The number of projects under assurance oversight will continue to change over time as new projects start, projects previously out of scope meet the criteria for inclusion following changes such as additional investment, and other projects close.
Since February 2024, of the 54 projects that have come under assurance oversight:
- 21 projects were previously funded, either during the 2023–24 Mid-Year Economic and Fiscal Outlook (MYEFO) or earlier, but only came under central oversight after the last report in February 2024
- 33 projects were newly funded in the 2024–25 Budget and are being delivered across 25 agencies.
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Projects range in total budget from less than $1 million to more than $3 billion, and in duration from one year to 35 years.
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- Project budgets: $1M–$3B
- Project duration: 1–35 Years
Projects range in total budget from less than $1 million to more than $3 billion, and in duration from one year to 35 years. What each of these projects has in common is that they are harnessing technology to deliver benefits for Australians.
- Project budgets: 2/3 digital technologies.
For the projects included in this report, on average about two-thirds of the total project budget relates directly to digital technologies with one-third going to non-digital spending.
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New projects entering central oversight
Most projects coming under central assurance oversight in the past year have been Tier 2 and Tier 3 level investments
New projects entering central oversight Investment tier
Projects
Total
budget
Median total budget
Average duration
1
Flagship digital investments
9
$1.3 billion
$154.7 million
3.2 years
2
Strategically significant digital investments
20
$5.7 billion
$58.8 million
6.9 years (see table note)
3
Significant digital investments
25
$1.4 billion
$24.0 million
2.1 years
Table note: Tier 2 average project duration is affected by 2 outlier projects, each with a duration of 35.0 years. Average duration excluding these 2 projects is 3.6 years.
Tier 3 projects made up the largest number of additional projects. These projects are usually lower risk and have smaller budgets, with most investing in ‘sustainment’ and ‘product/service enhancement’ rather than establishing wholly new digital capabilities. The increase in Tier 3 investments reflects ongoing efforts to move away from higher-risk large and complex projects to smaller, ‘bite-size’ projects where possible. Evidence suggests these smaller projects generally have a higher rate of success.
Large investments will still be necessary in some cases, and several have been commissioned since the last report. Strong planning and oversight are crucial to ensure new higher-risk investments do not exceed available delivery capacity. Strengthening central oversight, including digital investment planning and prioritisation, is key to balance project loads within capacity and coordinate efforts to expand capabilities of agencies and delivery partners to handle expected growth in digital investment.
Planning for the future
From the 2026–27 Budget, Commonwealth agencies will be required to develop digital and ICT investment plans. This will provide a future-focused understanding of the complexities across the government’s digital and ICT landscape and identify future need for investment in digital services.
Digital and ICT investment plans will provide short, medium and long-term views of projects. This will help to balance capacity, instil a culture of strategic digital investment planning focused on the future, improve understanding of criticality and risk, and support long-term ambitions to achieve better digital outcomes for Australians as part of the Data and Digital Government Strategy. The investment plans will also increase visibility of digital investments across agencies, enabling the trial and adoption of new technologies, greater coordination of digital enhancements, and more integrated service delivery across agencies.
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Connect with the digital community
Share, build or learn digital experience and skills with training and events, and collaborate with peers across government.