Department of Finance

Strengthening Australia’s Fiscal Sustainability, Public Value & Government Performance

The Department of Finance ensures the responsible management of public funds, supports effective government operations, and strengthens the long‑term financial sustainability of the Commonwealth. It oversees budgeting, expenditure, governance, procurement, and whole‑of‑government performance frameworks that keep Australia’s public sector accountable, efficient, and future‑ready.

Finance is central to national stability — ensuring taxpayer money is used wisely, major projects deliver value, and government services operate effectively across all portfolios.

 

National Financial Management

What They Do

  • Develop and manage the Federal Budget

  • Oversee government expenditure, savings, and fiscal strategy

  • Manage Commonwealth assets, liabilities, and investment funds

  • Provide governance, performance, and accountability frameworks

Why It Matters

  • Ensures responsible use of taxpayer money

  • Supports stable economic conditions

  • Strengthens trust in government operations

  • Enables long‑term national planning and resilience

Key Outputs

  • Federal Budget Papers

  • Mid‑Year Economic & Fiscal Outlook (MYEFO)

  • Government performance reports

  • Whole‑of‑government financial frameworks

sub departments of the Finance department

🔷 Budget Group

National Budget & Fiscal Strategy

  • Prepare the Federal Budget

  • Manage revenue and expenditure frameworks

  • Provide economic and fiscal analysis

  • Coordinate whole‑of‑government budget processes

🔷 Governance & Public Sector Performance Division

Accountability, Transparency & Public Value

  • Oversee the Public Governance, Performance and Accountability Act

  • Strengthen performance reporting across all agencies

  • Improve transparency and public sector capability

  • Support ministerial and parliamentary accountability

🔷 Procurement & Investment Division

Government Procurement & Major Projects

  • Manage Commonwealth procurement rules

  • Oversee major project assurance

  • Support value‑for‑money contracting

  • Strengthen supplier and industry engagement

🔷 Commonwealth Investment & Asset Management

Managing National Assets & Funds

  • Oversee sovereign investment funds

  • Manage Commonwealth property and leases

  • Support infrastructure and capital investment decisions

  • Provide financial risk and asset management frameworks

🔷 Shared Services & Digital Transformation (Finance Functions)

Efficient Government Operations

  • Deliver shared services to agencies

  • Support digital capability uplift

  • Improve administrative efficiency

  • Strengthen whole‑of‑government systems

Finance Portfolio Agencies

  • Future Fund Management Agency

  • Australian Electoral Commission (AEC)

  • Digital Transformation Agency (DTA)

  • Independent Parliamentary Expenses Authority (IPEA)

  • Commonwealth Superannuation Corporation (CSC)

Support to Government & Parliament

  • Parliamentary budgeting support

  • Ministerial and Cabinet financial advice

  • Transparency and reporting frameworks

  • Public sector capability development

 

Key Problems in Finance

Australia faces rising fiscal pressures, structural budget deficits, and increasing demand for public services. Major project overruns, procurement inefficiencies, and outdated systems have strained government performance. The Department of Finance plays a critical role in restoring fiscal discipline, improving transparency, and ensuring every dollar delivers maximum public value.

 

DEPARTMENT OF FINANCE — AI & SYSTEM MODERNISATION PLAN

Implementation Plan + Costing Model Aligned with Australians Unified – Government Administration & Finance Portfolio

 

1. PROBLEM DIAGNOSIS (Based on Finance’s typical issues)

Structural Problems

  • Fragmented financial systems across agencies

  • Manual, spreadsheet‑driven modelling

  • Slow budget development cycles

  • Limited real‑time visibility of spending

  • Outdated procurement and contract management tools

Operational Problems

  • High administrative burden

  • Slow approvals and workflow bottlenecks

  • Limited forecasting accuracy

  • Inconsistent data quality

  • Workforce fatigue and skill shortages

Governance Problems

  • Poor cross‑agency integration

  • Limited transparency for ministers and the public

  • Inconsistent reporting standards

  • Slow response to emerging fiscal risks

 

2. KEY SOLUTIONS (AI‑Enabled + System Modernisation)

Solution 1 — Unified Financial Management Platform

A single whole‑of‑government system replacing fragmented tools.

Features

  • Real‑time budget tracking

  • Automated reporting

  • Integrated procurement, contracts, grants, and payments

  • Standardised data across all agencies

 

Solution 2 — AI‑Driven Budget Modelling & Forecasting

AI replaces manual spreadsheets and scenario modelling.

Features

  • Predictive forecasting

  • Automated scenario analysis

  • Risk detection (overspend, underspend, anomalies)

  • Faster budget updates

 

Solution 3 — AI‑Enabled Procurement & Contract Intelligence

AI reviews contracts, identifies risks, and automates compliance.

Features

  • Contract summarisation

  • Risk scoring

  • Duplicate vendor detection

  • Fraud and anomaly alerts

 

Solution 4 — Automated Workflow & Approvals Engine

Cuts delays and manual handling.

Features

  • Auto‑routing of approvals

  • Digital signatures

  • SLA tracking

  • Ministerial briefing automation

 

Solution 5 — Workforce Augmentation Tools

AI copilots for Finance staff.

Features

  • Automated briefing generation

  • Data extraction from PDFs

  • Policy summarisation

  • Natural‑language queries over financial data

 

3. IMPLEMENTATION PLAN (4‑Phase Roadmap)

Mirrors your Defence/AGD/FWO/SWA/JSA structure.

 

PHASE 1 — FOUNDATION (Years 1–2)

Stabilise & Prepare

  • Audit all Finance systems

  • Build unified data architecture

  • Deploy workflow automation

  • Begin AI pilots for modelling and procurement

  • Staff training and capability uplift

Outcome: Faster, more consistent financial operations.

 

PHASE 2 — ACCELERATION (Years 2–4)

Modernise & Integrate

  • Launch unified financial management platform

  • Deploy AI forecasting across all divisions

  • Integrate procurement and contract intelligence

  • Expand automation to grants and payments

  • Establish cross‑agency data standards

Outcome: Modern, integrated financial systems.

 

PHASE 3 — EXPANSION (Years 4–6)

Grow Sovereign Capability

  • Whole‑of‑government adoption

  • Real‑time fiscal dashboard for ministers

  • National procurement intelligence network

  • Workforce augmentation tools for all staff

  • AI‑enabled risk and compliance engine

Outcome: Stronger sovereign financial capability.

 

PHASE 4 — FUTURE‑READY (Years 6–10)

Transform & Optimise

  • Fully automated budget cycles

  • Predictive fiscal risk management

  • AI‑enabled policy modelling

  • Continuous system optimisation

  • Climate‑resilient financial planning

Outcome: A modern, resilient, future‑ready Finance system.

 

4. COSTING MODEL — AI & SYSTEM MODERNISATION

Structured identically to your FWC/FWO/SWA/JSA costing models.

 

BASELINE FUNDING (CURRENT)

Department of Finance operational envelope (approx.): $0.52B per year

 

NEW SYSTEM + AI UPLIFT COSTING

PHASE 1 — FOUNDATION (Years 1–2)

Annual Uplift: $0.38B – $0.52B Breakdown:

  • System audit & architecture: $0.10B

  • Workflow automation: $0.08B

  • AI pilots: $0.10B

  • Data standards & governance: $0.06B

  • Workforce capability uplift: $0.04B

2‑Year Total: $0.76B – $1.04B

 

PHASE 2 — ACCELERATION (Years 2–4)

Annual Uplift: $0.52B – $0.70B Breakdown:

  • Unified financial platform build: $0.20B

  • AI forecasting deployment: $0.14B

  • Procurement intelligence: $0.10B

  • Grants/payments automation: $0.08B

  • Cross‑agency integration: $0.06B

3‑Year Total: $1.56B – $2.10B

 

PHASE 3 — EXPANSION (Years 4–6)

Annual Uplift: $0.70B – $0.90B Breakdown:

  • Whole‑of‑government rollout: $0.22B

  • Ministerial fiscal dashboard: $0.12B

  • National procurement intelligence: $0.16B

  • Workforce augmentation tools: $0.14B

  • Risk & compliance engine: $0.06B

2‑Year Total: $1.40B – $1.80B

 

PHASE 4 — FUTURE‑READY (Years 6–10)

Annual Uplift: $0.90B – $1.20B Breakdown:

  • Fully automated budget cycles: $0.30B

  • Predictive fiscal risk management: $0.24B

  • AI policy modelling: $0.22B

  • System optimisation: $0.20B

  • Climate‑resilient planning: $0.14B

4‑Year Total: $3.60B – $4.80B

 

TOTAL INVESTMENT SUMMARY

6‑YEAR TOTAL

  • Uplift: $3.72B – $4.94B

  • Baseline: $3.12B

TOTAL: $6.84B – $8.06B

 

10‑YEAR TOTAL

  • Uplift: $6.32B – $8.74B

  • Baseline: $5.20B

TOTAL: $11.52B – $13.94B

 

OUTCOME TILE

THE FUTURE‑READY DEPARTMENT OF FINANCE

✔ Faster, automated financial operations ✔ AI‑driven forecasting and modelling ✔ Modern procurement and contract intelligence ✔ Real‑time fiscal transparency ✔ Stronger sovereign financial capability ✔ A resilient, future‑ready financial system