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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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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

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. 

Tier 2 and Tier 3 projects make up the bulk of all active projects under central assurance oversight

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Of note, almost half of the total budget of all Tier 2 projects relates to a single, multi‑decade investment, valued at $3.4 billion. This outlier project skews the average budget of Tier 2 projects ($167.8 million) and means the median budget of $45.0 million better reflects their typical size. 

Flagship digital investments (Tier 1) represent 18.2% of active projects and approximately 29.5% of the total budget. Just over half of all Tier 1 projects are reporting a planned completion date between June 2025 to June 2026. Strong ongoing investment planning and prioritisation within each of these projects will be essential for Senior Responsible Officials to smoothly deliver these projects over the next 12 months. 

For all tiers, experience shows that the projects most likely to deliver expected benefits on time and on budget have robust approaches to key project management disciplines including governance, risk, benefits and assurance. Strengthening approaches in these areas is a priority for the DTA in our work overseeing all the digital projects included in this report.

Improving benefits management capability

The Australian Government’s Benefits Management Policy for Digital and ICT-Enabled Investments requires agencies to use best practice benefits management for their digital projects. Projects must identify measurable benefits with clear baselines and targets before funding decisions are taken. The minimum policy requirements are adjusted based on project tier, but all projects must focus on securing benefits in addition to preventing cost and schedule overruns. 

The DTA oversees the realisation of benefits and identifies emerging risks across digital projects. We also focus on providing advice, support and training to improve public service capabilities. Investment in this area aims to ensure that digital projects deliver anticipated benefits to the government and Australians.

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