Effective investment in digital technologies and data is essential for enhancing public service delivery and institutional performance. As government spending on digital and Information and Communication Technology (ICT) is projected to grow, ensuring these investments deliver value and avoid inefficiencies is increasingly critical. This demands agile investment strategies, a balance between in-house capabilities and strategic partnerships, and budgeting approaches that align with modern digital needs. 

Australia’s response to this challenge is embodied in the Digital and ICT Investment Oversight Framework (IOF) which underpins the Digital Transformation Agency’s support for whole-of-government investment management. Introduced in 2022, the IOF provides a comprehensive, end-to-end approach across the digital investment lifecycle – from early planning to benefit realisation – aligned with the Data and Digital Government Strategy 2023–2030.

This report reviews the IOF’s progress three years post-launch, benchmarking it against OECD best practice. It identifies strengths, challenges and opportunities to ensure the IOF remains fit for purpose and continues to advance Australia’s digital government ambitions. Based on the assessment, the report provides policy recommendations for the Australian government.