Services Australia has launched a 10-year transformation of its IT architecture to modernise legacy systems and enhance service delivery. 

A taskforce has been formed to develop a comprehensive ICT architecture strategy, with a finalised plan due by June 2025.  

A capability review (PDF) released this week commended the agency’s modernisation strategy, describing it as a crucial step in ensuring reliable, adaptable digital infrastructure. 

While Services Australia is meeting key performance targets for system availability and self-service options, the review identified widespread dissatisfaction with outdated IT systems and called for progressive upgrades rather than sweeping overhauls.

 The report advised that a gradual uplift would allow the agency to maintain operations while introducing new technologies, ensuring it “maintains agility to keep pace with emerging technology.”  

The review revealed that both employees and external stakeholders view the agency’s IT systems as a major obstacle. 

Staff surveyed ranked ICT improvement as the highest priority, with the report noting, “This was the most selected of the 27 options for this question in the survey”.

The report stated that legacy systems, while long-serving, “are now increasingly impeding the agency and its staff from moving forward to find further efficiencies and innovations.” Staff expressed frustration at having to navigate multiple systems to perform routine tasks, while external stakeholders described the infrastructure as “clunky,” “monolithic,” and held together with “lots of sticky tape.” 

One internal stakeholder highlighted “disaggregated systems that don’t talk to one another and a number of implementations where intended benefits were not realised.”  

The capability review identified several macro trends shaping the agency’s future, including rapid advancements in artificial intelligence, increasing cybersecurity threats, and shifting public expectations regarding government service delivery. 

The agency says it will also need to address workforce challenges, including attracting and retaining skilled IT professionals in a competitive labour market.  

The report emphasised that Services Australia’s IT transformation must be carried out “hand-in-hand” with other government agencies that depend on its shared-services infrastructure. 

It also noted that sustained funding would be essential to support the agency’s digital transition.  

The review further highlighted the importance of proactive digital engagement, recommending that Services Australia harness emerging technologies such as AI to improve automation and data processing. 

It also advised the agency to adopt a “one Services Australia” approach, strengthening internal collaboration and external partnerships to better respond to crises and evolving social needs.  

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