DEPARTMENT OF FINANCE — REFORM & MODERNISATION

A modern, sovereign, transparent financial system for Australia.

Strengthening national capability, reducing waste, modernising systems, and restoring public trust.

Reform Overview Tile

Reform Overview

Central to economic stability
Modernizing outdated frameworks
Strengthening sovereign capability
Improving transparency
Ensuring efficient, responsible public spending

The Department of Finance’s Major Problems

Fragmented Financial Systems Legacy systems, inconsistent processes, and siloed data across agencies.

Slow, Manual Budget Processes Outdated workflows that delay decision‑making and reduce agility.

Inefficient Procurement Complex, inconsistent, and high‑risk procurement practices.

Outdated ICT & Digital Finance Systems Ageing platforms, poor integration, and high maintenance costs.

Weak Cross‑Agency Integration Finance, Treasury, PM&C, and agencies operating without alignment.

Poor Transparency & Reporting Inconsistent reporting, limited visibility, and low public trust.

FINANCE REFORM PILLARS

Budget Transparency Reform Clear, accessible, real‑time financial reporting for all Australians.

Public Sector Efficiency & Waste Reduction Cutting duplication, modernizing systems, and improving value for money.

Sovereign Financial Capability Building national capability in finance, audit, and economic governance.

Tax System Modernization Fair, simple, efficient tax settings that support national growth.

Digital Finance & Payments Reform Modern, secure, cloud‑based financial systems across government.

Infrastructure & Resilience Funding Long‑term, transparent investment in national capability.

Budget Group — Policy Page Oversight of national budgeting, forecasting, and fiscal strategy.

Department of Finance

AMEND / REMOVE / CREATE

AMEND

Update PGPA Act
Modernise financial reporting
Strengthen procurement rules
Improve audit and oversight frameworks

REMOVE

Redundant programs
Duplicated oversight bodies
Legacy ICT systems
Inefficient shared‑services models

CREATE

Public Bank
National Insurance Office
Unified Finance Platform
National Financial Capability Centre

Current State Fragmented systems, outdated processes, low transparency.

2. Challenges Rising costs, capability gaps, digital risk, public mistrust.

3. Reform Actions Modernisation, integration, transparency, capability uplift.

4. Expected Outcomes Efficient, sovereign, trusted financial governance.

BUSINESS OPERATIONS CENTRE

What the BOC Does Centralized operational support for finance, procurement, audit, and reporting.

Why It Must Report to PM&C Ensures independence, whole‑of‑government alignment, and strategic oversight.

How It Integrates with Finance Provides capability uplift, shared standards, and operational consistency.

National Benefits Lower costs, reduced duplication, stronger national capability.

COMMUNITY IMPACT

Lower Costs & Less Waste Efficient spending that benefits every Australian.

Fairer Tax System Modern, equitable tax settings.

Stronger National Institutions Trusted, capable, transparent financial governance.

Transparent Spending Clear reporting and open data for the public.

Better Services Faster, more reliable government services.

CROSS‑PORTFOLIO INTEGRATION (4 Tiles)

Finance + Treasury Unified fiscal strategy and economic governance.

Finance + Home Affairs Secure, resilient financial systems and risk management.

Finance + Infrastructure Transparent, long‑term national investment planning.

Finance + Defence Sovereign capability, procurement integrity, and strategic funding.

BUDGET GROUP — POLICY PAGE

National budgeting, forecasting, fiscal strategy, and transparency.

Overview

The Budget Group ensures Australia’s finances are stable, transparent, and strategically aligned with national priorities.

Key Responsibilities (Tiles)

National Budget Framework Designing and delivering the Federal Budget.

Fiscal Strategy & Forecasting Long‑term modelling, economic outlooks, and fiscal sustainability.

Expenditure Management Ensuring spending aligns with national priorities and delivers value.

Budget Transparency Clear, accessible reporting for Parliament and the public.

Intergovernmental Budget Coordination Working with states and territories on shared funding.

Problems Identified

Slow, manual budget processes
Limited real‑time visibility
Fragmented data across agencies
Inconsistent reporting standards
Low public trust in spending transparency

Reform Actions

Introduce real‑time digital budget dashboards
Standardise reporting across all portfolios
Modernise forecasting tools
Improve public transparency
Strengthen fiscal discipline and long‑term planning

Outcomes

Faster, more accurate budgeting
Clearer public reporting
Stronger national financial stability

PROCUREMENT & CONTRACTING POLICY PAGE

Transparent, ethical, value‑for‑money procurement.

Overview

Reforming procurement to ensure fairness, integrity, and value for taxpayers.

Key Responsibilities (Tiles)

Commonwealth Procurement Rules (CPRs) Setting standards for ethical, transparent procurement.

Contract Management Ensuring contracts deliver outcomes and value.

Supplier Diversity Supporting SMEs, regional suppliers, and Indigenous businesses.

Risk & Compliance Managing procurement risk and ensuring accountability.

Open Contracting Publishing tenders, contracts, and spending data.

Problems Identified

Inconsistent procurement practices
Limited transparency
Weak contract oversight
High‑risk supplier arrangements
Poor value for money in major projects

Reform Actions

Strengthen CPRs and compliance
Introduce open‑contracting dashboards
Improve contract performance monitoring
Increase SME participation
Reduce reliance on major consulting firms

Outcomes

Fairer, more competitive procurement
Lower costs and reduced waste
Stronger public trust

INVESTMENT & ASSET MANAGEMENT POLICY PAGE

Responsible, risk‑aware management of public assets and investments.

Overview

Ensuring public investments are safe, transparent, and aligned with national interests.

Key Responsibilities (Tiles)

Public Asset Oversight Managing Commonwealth assets responsibly.

Investment Governance Ensuring investments meet risk, return, and integrity standards.

Superannuation & Retirement Systems Protecting Australians’ retirement savings.

Ratings, Audit & Assurance Strengthening independent oversight.

Market Integrity Preventing misconduct and protecting consumers.

Problems Identified

Trustee failures and poor oversight
High‑risk investment products
Weak ratings and audit integrity
Slow regulatory response
Consumer harm and retirement losses

Reform Actions

Strengthen trustee accountability
Reform MIS regulatory framework
Improve ratings agency standards
Enhance audit independence
Introduce national investment risk dashboards

Outcomes

Safer investments
Stronger consumer protection
Reduced systemic risk

TRANSPARENCY & ACCOUNTABILITY POLICY PAGE

Clear reporting, open data, and public trust.

Overview

Building a transparent, accountable financial system that Australians can trust.

Key Responsibilities (Tiles)

Transparency Portal Open access to financial data.

Public Reporting Standards Consistent, comparable reporting across government.

Integrity Systems Anti‑corruption, audit, and oversight mechanisms.

Open Data & Accessibility Making financial information easy to understand.

Public Trust & Engagement Clear communication and community confidence.

Problems Identified

Inconsistent reporting
Limited public visibility
Declining trust
Complex, inaccessible financial data
Weak integrity safeguards

Reform Actions

Standardise reporting across all agencies
Expand open‑data requirements
Strengthen integrity frameworks
Improve public communication
Introduce real‑time transparency tools

Outcomes

Higher public trust
Clearer financial information
Stronger accountability

Rebuilding Public Institutions

Restoring capability, trust, integrity, and performance across Australia’s public institutions.

Overview

Modernise outdated institutional frameworks
Strengthen integrity, transparency, and accountability
Rebuild capability, governance, and public trust
Reduce fragmentation, duplication, and systemic failures
Create institutions that are fair, effective, and citizen‑centred

Key Responsibilities

Institutional Governance — Clear roles, accountability, and performance standards
Public Trust & Transparency — Open data, clear reporting, and accessible information
Integrity Systems — Independent oversight, anti‑corruption, and ethical safeguards
Capability & Workforce Renewal — Skills, leadership, and modern operating models
Community‑Centred Service Delivery — Fair, consistent, responsive public services

Problems Identified

Declining public trust in government and institutions
Fragmented governance and inconsistent performance
Slow, outdated, manual processes
Weak integrity systems and oversight gaps
Poor cross‑agency coordination
Institutional unfairness and perceived bias

Reform Actions

Establish a Unified Institutional Governance Framework
Strengthen integrity, audit, and oversight systems
Modernise public sector capability and leadership
Introduce transparent, real‑time reporting across institutions
Build community‑centred service models
Improve cross‑portfolio coordination (Finance, PM&C, AGD, Social Services)

Outcomes

Stronger, more trusted public institutions
Clear accountability and transparent decision‑making
Faster, fairer, more reliable public services
Reduced duplication and systemic waste
A modern, capable, citizen‑focused public sector

GOVERNANCE & PUBLIC SECTOR PERFORMANCE POLICY PAGE

Strengthening accountability, capability, and institutional performance.

Overview

Ensuring the public sector is high‑performing, transparent, and aligned with national goals.

Key Responsibilities (Tiles)

Performance Frameworks Clear standards for agency performance.

Institutional Capability Building skills, leadership, and workforce strength.

Audit & Oversight Independent assurance and accountability.

Public Sector Reform Modernising structures, systems, and culture.

Cross‑Agency Coordination Aligning Finance, PM&C, Treasury, and agencies.

Problems Identified

Capability gaps
Weak performance measurement
Fragmented governance
Slow reform adoption
Low public trust

Reform Actions

Strengthen performance frameworks
Build national capability programs
Improve audit independence
Modernise governance structures
Enhance cross‑portfolio alignment

Outcomes

Stronger institutions
Better public services
Higher trust and accountability

Procurement & Contracting Policy

Commonwealth Procurement Rules (CPRs)
Ethical, efficient, effective procurement
Value for money principles

Transparency & Open Contracting

AusTender publication requirements
Contract notices & ATMs
Annual procurement plans

Risk, Audit & Compliance

ANAO audit lessons
Procurement risk frameworks
Contract management capability

Fair & Competitive Markets

Open and effective competition
Supplier diversity & SME access
Anti‑corruption safeguards

Sustainable & Ethical Procurement

Environmental & social responsibility
Industry benchmarks (e.g., INPEX)
Whole‑of‑life value

INVESTMENT & ASSET MANAGEMENT POLICY

Overview

Modernise investment and asset frameworks
Strengthen governance, transparency, and accountability
Protect retirement savings and public wealth
Reduce systemic risk and consumer harm
Replace outdated oversight models with modern, risk‑aware systems

Key Responsibilities

Public Asset Management — Responsible stewardship of Commonwealth assets
Investment Governance — Standards for risk, return, ethics, transparency
Superannuation Protection — Safeguarding retirement savings
Ratings, Audit & Assurance — Independent, high‑quality oversight
Market Integrity — Preventing misconduct and protecting consumers

Problems Identified

Legacy investment frameworks
Trustee and platform oversight failures
High‑risk, poorly governed investment schemes
Weak ratings and audit integrity
Fragmented regulatory oversight
Consumer harm and retirement losses

Reform Actions

Build a Unified Investment Governance Framework
Strengthen trustee accountability and penalties
Modernise MIS regulation
Improve ratings and audit independence
Create National Investment Risk Dashboards for real‑time oversight

Outcomes

Safer, more transparent investment systems
Stronger protection for retirement savings
Lower long‑term risk and fewer failures
Trusted public asset management
A more resilient national financial system

DIGITAL FINANCE & SHARED SERVICES POLICY PAGE

Overview

Replacing outdated systems with modern, cloud‑based, secure digital finance platforms.

Modern, secure, integrated digital finance systems.

Key Responsibilities (Tiles)

Digital Finance Platforms Modernising core financial systems.

Payments & Automation Faster, secure, automated transactions.

Data Integration Unified financial data across government.

Cybersecurity & Resilience Protecting financial systems from digital threats.

Shared Services Reform Ending failed centralised models and enabling fit‑for‑purpose systems.

Problems Identified

Legacy systems and high maintenance costs
Failed shared‑services programs
Poor integration across agencies
Digital security vulnerabilities
Slow, manual financial processes

Reform Actions

Build a Unified Finance Platform
Adopt cloud‑first, modular systems
Strengthen cybersecurity
Improve data sharing and interoperability
Replace failed shared‑services models

Outcomes

Faster, safer, more reliable finance systems
Lower long‑term costs
Stronger national resilience

Commonwealth Investment & Asset Management — Policy Page

Overview

Modernise investment and asset governance
Strengthen transparency, accountability, and oversight
Protect retirement savings and public wealth
Reduce systemic risk and consumer harm
Replace outdated frameworks with modern, risk‑aware systems

Key Responsibilities

Public Asset Management — Responsible stewardship of Commonwealth assets
Investment Governance — Standards for risk, return, ethics, transparency
Superannuation Protection — Safeguarding retirement savings
Ratings & Audit Assurance — Independent, high‑quality oversight
Market Integrity — Preventing misconduct and protecting consumers

Problems Identified

Outdated investment frameworks
Trustee and platform oversight failures
High‑risk, poorly governed investment schemes
Weak ratings and audit independence
Fragmented regulatory oversight
Consumer harm and retirement losses

Reform Actions

Build a Unified Investment Governance Framework
Strengthen trustee accountability and penalties
Modernise MIS regulation
Improve ratings and audit independence
Create National Investment Risk Dashboards

Outcomes

Safer, more transparent investment systems
Stronger protection for retirement savings
Lower long‑term risk and fewer failures
Trusted public asset management
A more resilient national financial system

Reform Pathway (4‑Step Model)

(Same structure as AGD)

1. Current State

Complex financial frameworks
Limited transparency
Inefficient procurement
Rising cost pressures

2. Challenges

Ageing digital systems
Fragmented oversight
Waste and duplication
Economic volatility

3. Reform Actions

Modernise legislation
Build sovereign institutions
Improve transparency
Streamline procurement
Strengthen financial resilience

4. Expected Outcomes

Lower waste
Stronger national capability
Transparent spending
Efficient public services
Fairer tax system

Finance Reform Priorities (Tile Set)

(Equivalent to AGD’s “Key Reform Areas” section)

1. National Budget Transparency Reform

Real‑time dashboards, open data, and simplified reporting.

2. Public Sector Efficiency & Waste Reduction

Whole‑of‑government audit and streamlined procurement.

3. Sovereign Financial Capability

Public bank, national insurance, and sovereign investment funds.

4. Tax System Modernisation

Fairer, simpler, family‑centred tax settings.

5. Digital Finance & Payments Reform

Unified digital payments, automated reporting, and secure systems.

6. Infrastructure & Resilience Funding Reform

Long‑term, stable funding for national energy, water, and transport grids.

Community Impact Tiles

(Mirroring AGD’s “What this means for Australians”)

Lower Costs & Less Waste

More efficient government means better value for taxpayers.

Fairer Tax System

Simpler, family‑centred tax settings.

Stronger National Institutions

Public bank, insurance, and sovereign funds.

Transparent Spending

Real‑time dashboards and open data.

Better Services

Faster procurement, modern systems, and reduced duplication.

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