Government spending on ICT is $5 billion

Media Release

GG 02/12
25 January 2012

Government spending on ICT is $5 billion

The Australian Government is a major consumer and producer of Information and Communications Technology (ICT), with annual expenditure of $5 billion, Special Minister of State Gary Gray said today.

He released a report outlining expenditure by government departments in 2008-09 and 2009-10.

"The report gives a very useful insight into the Government ICT market,” Mr Gray said. "The Government’s investment in ICT is improving the way it delivers services to the community and industry.”

Australia’s total ICT market is estimated to be worth nearly $100 billion.

The report shows that:

· The Australian Government is a major consumer and producer of ICT services, with annual expenditure of about $5 billion per year;

· ICT expenditure has increased marginally between the two years in real terms (i.e. after correcting for the effects of inflation), but decreased as a proportion of departmental operating costs;

· ICT accounted for about 5 per cent of agencies’ total operating costs in 2009-10;

· The Government is investing in enhancing and extending its ICT capability, with 30 per cent of its expenditure on new projects in 2009-10.

"The Government is investing in the largest ever infrastructure project undertaken in this country, the National Broadband Network, that will improve services in the education and health sectors and offer the potential for productivity improvement for businesses,” Mr Gray said.

Some of the major service improvement projects in progress enabled by ICT include:

· Service Delivery Reform (Department of Human Services) - transforming government service delivery by delivering more one-stop-shops, more self service options and more intensive support for those who need it; and

· Passport Redevelopment Program (Department of Foreign Affairs and Trade) - a new passport issuing system to help the Department achieve better client service including through improvements to the online passport application process.

"While this type of data has not been released previously, the release is consistent with the Government’s ongoing commitment to providing better access to government held information.”

The data has been sourced from agencies subject to the Financial Management and Accountability (FMA) Act 1997 through an annual ICT benchmarking data collection exercise conducted by the Department of Finance and Deregulation.

The objectives of the ICT benchmarking program are to measure progress in improving the efficiency and effectiveness of ICT services in the delivery of Government programs, and inform other whole-of-government ICT policy initiatives.

Data for the 2010-11 financial year is currently being analysed. It is anticipated that a report including this data will be released in the next couple of months.

The report is available online at www.finance.gov.au and www.data.gov.au.