The OECD review
Australia's digital investment approach just earned international recognition. The Organisation for Economic Co-operation and Development has released a comprehensive three-year review of Australia's Digital and ICT Investment Oversight Framework .
The review assessed the framework against international best practices across 33 OECD member countries and five partner nations and called Australia's whole-of-government model a "strong example" that other countries can learn from.
The review also flagged three key areas that need improvement to get the most out of the system. The findings are relevant for all government agencies running digital projects. Australia has built a strong foundation, but the next step is better integration across the IOF's six states, stronger competitive processes and improved benefits tracking.
Here's what the OECD discovered and what agencies should do next.
OECD review backs Australia's digital investment approach
The OECD's assessment positions Australia's Digital and ICT Investment Oversight Framework as a standout model in global digital government. Introduced by the Digital Transformation Agency in 2022, the IOF covers the complete investment lifecycle from early planning through to benefit realisation.
The framework aligns with Australia's Data and Digital Government Strategy and operates across six interconnected states: Strategic Planning, Prioritisation, Contestability, Assurance, Sourcing and Operations. This comprehensive approach caught the OECD's attention as a practical example of whole-of-government coordination.
The review found the IOF's strength lies in its end-to-end governance model. Unlike fragmented approaches in other countries, Australia's system provides consistent processes, policies and tools that support agencies throughout the entire digital investment process. The DTA's position within the Finance portfolio also enables closer integration with central agency decision-making.
The timing of this three-year assessment is significant. With global government spending on digital and ICT projected to grow annually by between 2024-2027, the OECD review validates Australia's approach at a critical moment for digital transformation globally.
Why Australia's digital investment framework works
The IOF's success stems from three core design principles that address common failures in government digital projects. First, it covers the complete investment lifecycle without gaps. Most frameworks focus on either planning or delivery, but Australia's approach spans from initial strategic planning through to measuring actual benefits after implementation.
Second, the DTA's central coordination role eliminates the silos that typically plague government digital investments. The agency works directly with Portfolio Ministers during the annual budget process, ensuring digital and ICT proposals receive proper assessment before reaching the Cabinet's Expenditure Review Committee. This integration means digital considerations aren't an afterthought.
Third, the framework provides practical tools rather than just policy statements. The IOF includes everything from investment planning templates to assurance frameworks. Agencies get step-by-step guidance tailored to different investment sizes and risk levels.
The Benefits Management Policy ties it all together by requiring agencies to demonstrate how their digital investments will deliver intended outcomes. This shifts focus from spending on technology to achieving measurable results for citizens and government operations.
The three critical gaps holding back digital delivery
While the OECD review praised Australia's framework, the review identified specific areas where improvements could unlock greater value from digital investments.
Disconnected IOF states need better integration
The six IOF states currently operate with limited data flows between them. Agencies often need to resubmit information as proposals move from Strategic Planning through to Operations. The OECD found this creates inefficiencies and reduces the user experience for government agencies navigating the system.
The DTA is developing an Integrated Data Platform (IDP) to address this issue. The platform will track investments end-to-end as cases in the system, minimising duplicate data entry and providing a single view of each agency's investment history.
Contestability processes lack competitive rigour
The Contestability state (one of the six interconnected states in the Data and Digital Government Strategy ) handles approval and funding decisions for digital projects across government. However, the OECD noted that current processes don't always ensure the best value outcomes or encourage innovation in how digital challenges get solved.
The review suggested looking at international models like Norway's StartOff , which uses competitive challenges to drive better solutions for government problems.
Benefits tracking falls short of potential
While Australia has a Benefits Management , the OECD found gaps in how effectively benefits are measured and realised after project completion. Many investments lack robust tracking mechanisms to demonstrate whether they achieved their intended outcomes.
This matters particularly as digital government spending continues to and agencies face pressure to demonstrate return on investment.
What government agencies should do next?
Government agencies should start preparing for the IOF improvements now, even as the DTA works on systemic changes. The most immediate step is better documentation of investment outcomes and benefits tracking. Agencies that can demonstrate clear value from their digital projects will be better positioned when contestability processes become more competitive.
The OECD timeline suggests these changes will roll out over the next two to three years. The Integrated Data Platform is already being developed iteratively, with the Assurance state already onboarded and other states following progressively.
For current digital projects, agencies should align with the Australian Government to ensure compatibility with future integration requirements. This includes using consistent data standards and following the domain and capability models already established.
The review also highlighted opportunities for agencies to engage more genuinely with the framework rather than treating it as a compliance exercise. Agencies that work collaboratively with the DTA often achieve better outcomes and can influence how the IOF evolves to meet their needs.
Salsa’s Digital take
Government digital investment frameworks are only as effective as their implementation. The OECD's review highlights a familiar pattern across government digital transformation: strong policy frameworks that struggle with practical execution and integration challenges.
The OECD identified three gaps that reflect common challenges in government digital delivery: disconnected processes, insufficient competitive rigour and inadequate benefits measurement. These issues mirror the implementation challenges agencies face when translating strategic frameworks into operational reality.
The IOF improvements present an opportunity for agencies to rethink how they approach digital projects. The shift toward better integration and data flows aligns with what we've seen work effectively in platforms like , where shared infrastructure and standardised approaches reduce complexity for individual agencies.
Agencies that approach these IOF improvements as practical enablers rather than compliance requirements will achieve better outcomes for their digital investments.