Coordinated Australian digital ID, infrastructure strategy could deliver major savings

Digital ID could generate massive savings for Australia’s taxpayers, according to a former state government minister, but delivering on digital projects has proven difficult for the country so far. This is in part because digital transformation has been approached as a series of disconnected projects, a think tank in the country says, when a strategic approach to digital infrastructure is more suitable. And infrastructure modernization could deliver savings even before the benefits of digital identity are priced in, an advisory firm suggests.

Microsoft report says digitizing govt with cloud could save $8.9B

The Australian government could save up to 1.4 billion Australian dollars a year by accelerating the adoption of cloud technology and making IT labor and infrastructure more efficient. Aside from the savings, which could reach AU$13.5 billion (US$8.9 billion) by 2035, introducing the cloud would also boost cybersecurity and improve the delivery of digital government services, according to a new report commissioned by Microsoft.

The research, produced by economics advisory firm Mandala, advocates for a “coordinated approach” for driving the adoption of cloud technology and improving the delivery of government services. The report relies on Microsoft’s tools to estimate potential savings.

According to the analysis, over 70 percent of government agencies still rely on legacy IT systems, which not only inhibit innovation but also come with cybersecurity vulnerabilities. The country has faced several high-profile breaches over the past years, including at companies like Medibank, Optus and Latitude.

Microsoft and Mandala cite the examples of the U.S. Technology Modernization Fund, the UK’s Government Digital Service, as well as the New South Wales (NSW) Government’s deal with the U.S. tech firm as models of a way forward for Australia.

Digital infrastructure should be a strategic goal: ASPI

Although the report comes from a commercial entity that stands to gain from Australia’s adoption of cloud technology, its message is resonating among some experts.

The government should not treat digital transformation as an afterthought to national security, notes Jason Van der Schyff, a fellow at the Australian Strategic Policy Institute (ASPI).

Over the past years, Australia has been discussing how to shape its digital systems and critical infrastructure, such as digital identity. The country passed its Digital ID Bill, which will govern its planned national ID system.

“Australia has made progress, but too often we approach digital delivery as a series of disconnected IT projects,” he says. “The result is patchwork progress and a growing strategic gap.”

Efficient digital delivery of public services has been on Australia’s agenda for a decade. But as InnovationAus points out, after ten years of assuring the public they will be able to “tell us once” who they are, Services Australia is now pivoting to a new service model it calls Customer 360. “Tell us once” was identified as a “potential quick win” by Treasurer Jim Chalmers at the conclusion of the government’s Economic Reform Roundtable in August.

In the meanwhile, if national digital ID systems and services such as MyGov or Medicare are compromised, the whole economy could face disruption, Van der Schyff writes in a blog post.

“When government treats something as strategic, it mobilises leadership, resources and public attention,”he says. “Digital government deserves to be elevated to that level, central to sovereignty, resilience and preparedness.”

Digital ID could save up to $21.3B: Victor Dominello

Victor Dominello, former NSW digital government minister and current CEO of the Future Government Institute, says that digital IDs and a national data-sharing platform could save between AU$19 and AU$32 billion ($12.6 to $21.3 billion) thanks to boosts in productivity.

The figures were generated by Donello’s government services advisory ServiceGen alongside Ember Advisors and Amazon Web Services. The majority of the benefit would accrue to businesses and citizens, rather than the government, according to its estimate.

Known for his role in steering the NSW Digital ID project earlier in the decade, Dominello advocated for a national data-sharing platform; improvements in digital identity credentials and responsible use of AI during the Economic Reform Roundtable.

“All they’ve done is to create a number of super-highways to transport it, provided consent is authorised,” he told the Australian Financial Review. “You create a gated community: not everyone can jump in there, like foreign or malicious actors.”

In January, Australia started piloting the Trust Exchange (TEx) using digital medical credentials housed in the myGov app.

Article Topics

digital government  |  digital ID infrastructure  |  digital identity  |  government services  |  Microsoft