How the Australian Government’s digital projects are performing
This page describes the performance of digital projects currently under central assurance oversight. Digital projects present unique challenges, and the improvements described in previous sections are helping to create the right conditions for projects to succeed.
As noted in the previous section, a significant achievement since last year’s report is that all Tier 1 and Tier 2 projects have now reported their delivery confidence assessments. The trend from these assessments shows that most projects are on track to deliver their agreed outcomes, with 60.0% reporting a Medium-High or High DCA rating.
While the proportion of Tier 1 and Tier 2 projects reporting a Medium-High or High delivery confidence remains unchanged from last year, the proportion of total budget associated with these projects has grown to 69.5%, up from 52.9% last year. This means that the government’s complex and strategically significant digital projects with the most investment are increasingly on track to deliver their expected benefits.
Tier 1 projects have seen the greatest change, with more of the government’s investment in these projects on track. Almost three-quarters (74.2%) of the budget allocated to Tier 1 projects is attributed to those reporting Medium-High or High delivery confidence, almost double the 39.4% in 2025. Additionally, the average budget of Tier 1 projects with Medium or lower confidence has nearly halved, falling from $256.0 million in 2025 to $137.9 million in 2026. This indicates that delivery risk is now concentrated in smaller projects, which offer greater agility to respond to changing priorities – helping reduce delivery risk across the government’s digital portfolio.
Projects reporting Medium-High or High delivery confidence have common themes that enable this result. Successful delivery of project milestones and tranches is the most reported reason for improved delivery confidence, as this is clear evidence a project is achieving its goals. Another theme is undertaking regular assurance activities, such as independent assurance assessments, which are highly valuable in maintaining accountability and allow for timely adjustment when issues arise. Other enabling factors include having proactive risk management, which allows threats to be identified and addressed in a timely manner. Similarly, strong governance and leadership is critical for efficient and effective decision-making.
Reforms supporting success: Guidance for creating successful governance boards to steer digital projects
An effective digital project governance board is essential for managing the complexities and challenges inherent in digital projects. Recent consultations with Australian Government agencies and their leaders have highlighted a lack of comprehensive guidance on establishing and operating successful governance boards, particularly within the digital sector.
To address this gap, the DTA has developed new guidance in collaboration with the University of Queensland Business School, to assist Senior Responsible Officials and agency leaders in creating high-performing boards for digital projects.
This resource clarifies the distinct role of digital project boards and how they differ from other governance structures. It presents practical, evidence-based recommendations concerning optimal board composition, requisite skills and behaviours for effective oversight, and proven strategies for navigating common challenges throughout the project lifecycle.
A self-assessment tool is provided to enable boards to review and enhance their governance practices, identify areas for improvement, and develop actionable plans while leveraging existing strengths.
This publication contributes to the DTA’s digital project research series – a collaborative initiative with academic institutions, industry partners and government agencies to examine and shape key factors impacting digital project outcomes.
More information is at: Digital project research series.
No projects have a Low delivery confidence
Across Tier 1 and Tier 2 projects, projects rated Medium-Low or Low in 2025 (14.8%) fell sharply in 2026 (8.3%), with no projects now reporting a Low delivery confidence.
Tier 1 projects have seen the greatest change, dropping from 20.0% with Medium-Low or Low delivery confidence in 2025 to just 5.6% with Medium-Low delivery confidence in 2026.
The total budget invested in Tier 1 and Tier 2 projects with a Medium-Low or Low delivery confidence has also dropped, from 25.0% with Medium-Low or Low delivery confidence to 6.5% with Medium-Low delivery confidence.
With no Tier 1 or Tier 2 projects now rated Low, there are fewer projects and far less investment in projects with the lowest levels of delivery confidence.
In 2026, commonly reported reasons for Medium-Low delivery confidence are schedule-related concerns such as schedule pressure, slippage or compressed timelines. Other reasons relate to resource constraints and capability gaps, which can be attributed to critical skills shortages across government agencies. As noted in the State of the Service Report 2024–25, a large proportion of agencies identified digital and ICT (85%), data (77%) and portfolio, program or project management (46%) skills as their largest specific critical skills shortages (Note 8).
Other factors include external dependencies and policy/legislative uncertainties. While often beyond a project’s control, these factors can be addressed through proactive risk management, as identified earlier as a common theme in projects reporting a Medium-High or High delivery confidence.
Despite recent improvements in overall delivery confidence, there are emerging short-term pressures. One-third of projects reporting a Medium or lower delivery confidence have a planned completion date within the next 6 months. Projects at this stage of implementation are more susceptible to schedule slippage and quality risks, particularly where dependencies and residual issues converge late in the delivery cycle.
This year, half of new Tier 1 and Tier 2 projects entering oversight have a High or Medium-High delivery confidence, down from 75.0% in 2025. These projects also have smaller budgets than Tier 1 and Tier 2 projects entering oversight with Medium or lower delivery confidence, which have larger budgets. This is similar to last year, when the ratio of projects starting out with a Medium or lower delivery confidence was 3.5 times larger than projects starting out with High or Medium-High delivery confidence.
Large, complex projects often carry more uncertainty and risk. Their size and complexity make them harder to plan and execute, so they are more likely to start with lower confidence ratings. Smaller projects often have clearer scope, fewer dependencies and shorter timelines, making them easier to plan and deliver.
When projects enter oversight with Medium or lower delivery confidence, this indicates some risks or challenges have been identified as needing attention. Over half of the Tier 1 and Tier 2 projects entering oversight with Medium or lower delivery confidence in 2025 reported improved delivery confidence in 2026.
A common trend among projects entering oversight with Medium or lower delivery confidence is a need to improve planning – with unclear scope, scheduling and budget forecasting leading to funding shortfalls and poor visibility of progress. There has been a recent emphasis on ensuring mature planning is in place before projects start. However, the results for projects newly entering oversight indicate the need for continued focus on strengthening digital project design processes.
Reforms supporting success: Stronger planning for government digital investment
From July 2025, Digital Investment Plans (DIPs) were introduced to strengthen agency planning for digital investments. DIPs support short, medium and long-term strategic planning. This promotes a culture that is future-focused and enables more effective digital investment outcomes.
Agencies have begun embedding DIPs within their operational and strategic contexts. This improves alignment between technology and policy, contributing to improved digital services for Australians in line with the Data and Digital Government Strategy.
Early adoption has shown promising signs of more integrated planning, with agencies beginning to map out pathways for emerging technologies and innovation. While still in the early stages, DIPs are laying the groundwork for more coordinated and transparent investments.
These investment plans create a positive feedback loop for government to map a comprehensive view of digital projects. DIPs are now being used to identify shared challenges across agencies and opportunities to share solutions and resources.
The next phase will focus on strengthening whole-of-government strategic planning, improving cross-agency visibility, and supporting more agile, data-informed decision-making.
Continued refinement of DIPs will help ensure digital investments are responsive to the evolving needs of Australians as well as emerging technological opportunities.
More information is at: Digital Investment Plans (DIPs) | digital.gov.au.
Continuing projects experienced some changes in delivery confidence
Projects under central oversight are re-tiered to reflect changes in their risk profile, strategic significance or delivery context and circumstances.
Four projects from March 2025 have been reclassified from Tier 2 to Tier 3, which means they now fall outside the scope requiring regular delivery confidence information. Of these, one reported a High delivery confidence, 2 reported a Medium-High delivery confidence, and one was not reported.
Of the 52 continuing Tier 1 and Tier 2 projects that reported delivery confidence in March 2025, 20 projects either maintained or dropped delivery confidence to Medium or lower in 2026. Ten projects dropped from High and Medium-High in 2025 to Medium or lower in 2026, as they experienced key challenges such as governance and planning, risk management and readiness for next stage, which negatively affected project delivery.
However, other projects improved delivery confidence. Ten projects improved from Medium or lower in 2025 to Medium-High or High in 2026, with 2 of these projects previously reporting a Low delivery confidence now reporting Medium-Low and Medium-High delivery confidence. The common theme for delivery confidence improvement is maturing governance, improved planning and controls, strong stakeholder engagement, and demonstrated delivery progress – all contributing to higher confidence of successful delivery outcomes. Delivery confidence tends to increase as projects begin to realise intended benefits during their final stages.
All closed projects successfully delivered outcomes
A total of 18 projects were reported as closed since 2025. All closed projects were successfully delivered, achieving intended outcomes and objectives. Many of these closed projects also completed their transition to business-as-usual arrangements. Benefits realisation and tracking continues beyond project closure where necessary.
Over half of closed projects reported a change in budget since the last report
More than half (56.3%) of closed projects reported different total budgets compared with 2025. The majority of these (66.7%) reported a decrease in their total budget.
In fact, 40.0% of closed projects finished with spending below 50.0% of their total budget, due to either:
- initial discovery phase findings that identified a proposed solution was not viable and did not offer much in the way of additional benefits – leading to a decision to close the project
- savings realised from leveraging existing contracts, or
- deferral or scaling back of scope or planned enhancements.
Key lessons learnt from closed projects:
- Improve the effectiveness of governance, engagement and coordination across agencies, establishing relevant inter-agency governance structures and assurance roles where necessary. A single consistent and shared approach to project governance and accountability will ensure smoother delivery.
- Start by developing a better understanding of project requirements before designing, building and implementing projects. This allows for issues to be uncovered and properly considered.
- Help to manage stakeholder expectations and ensure project success by managing project scope effectively, being transparent about limitations and scope changes, and clearly defining scope upfront.
- Strengthen communication and engagement, particularly in initial stages of a project starting.
- Allocate sufficient resources throughout the project lifecycle, securing additional resources ahead of project commencement if required. Consistent and effective resource and capacity planning are essential to address resourcing gaps and ensure timely project delivery.
- Recognise that effective vendor management is critical.
Over half of closed projects changed their end date since last report
Over half (52.9%) of closed projects experienced a change in project end date. Of these, one-third (33.3%) experienced a delay in delivery.
Key reasons for schedule delays were:
- additional project scope elements being added after commencement, leading to extended scope and timeline and additional work
- procurement delays and complexity, leading to slowed progress and contract renegotiation.
Reforms supporting success: Gateway Reviews are helping government projects deliver better outcomes for Australians
When major government projects succeed, Australians benefit through improved services, smarter technology and better value for money. One of the tools supporting this is the Gateway Review process administered by the Department of Finance – an independent, practical checkpoint designed to strengthen planning and delivery and assist agencies in achieving successful outcomes. This independent assurance is a valuable input to the DTA’s advice to government on digital project performance
Gateway Reviews are collaborative and focused on successful delivery. They provide Senior Responsible Officials with expert advice at critical stages of a project’s lifecycle. Experienced reviewers act as ‘critical friends’, offering candid insights to help teams address challenges and maintain progress.
Projects that thrive share common traits:
- strong governance and clear prioritisation
- collaboration between business and technical teams
- accurate, high-quality data to inform decisions.
Why Gateway Reviews matter
Government projects are complex, often involving technology upgrades, service redesigns, and significant investment. Lessons learnt from past reviews show that success depends on:
- early governance and sponsorship – ensuring clear leadership from the start
- executive engagement at key points – actively involving senior decision-makers
- business-led, user-centred design – building services around the needs of Australians
- capability uplift and planning – equipping teams with the right skills early
- technology strategy and risk assurance – avoiding costly surprises
- proactive change management – preparing for impacts across agencies.
Capturing these lessons is critical to improving future delivery and avoiding repeat challenges.
Notes:
- Australian Public Service Commission (2025) State of the Service Report 2024–25, Australian Public Service Commission, Australian Government, accessed 20 January 2026. Back to note 8.