Overview of the Tasmanian Digital Transformation Program
The Tasmanian government has faced significant scrutiny over a digital transformation program that was expected to modernise its human resources and payroll systems. However, the initiative, which began in 2020, has been marked by delays, financial mismanagement, and a lack of clear direction. According to an audit conducted by the auditor-general, Martin Thompson, the program failed to deliver any of its intended modules after four years, with costs reaching $47 million before being transferred to a new department.
Initial Stages and Expansion of the Program
Initially known as the Human Resource Information System (HRIS) program, the project aimed to upgrade the aging systems within the Tasmanian Health Department. By 2021, the scope of the program had expanded to include all government agencies, rebranding it as the Human Resource Transformation Program (HRTP). This shift was meant to create a more comprehensive solution for the state’s public sector.
However, the transition did not come without challenges. In 2024, following an external review, responsibility for the project was moved to the Department of Premier and Cabinet (DPAC), which took on the task of managing the HRTP. Despite this change, the program remained “at risk” due to unresolved issues from the previous phase.
Issues Identified in the Audit
Mr. Thompson highlighted several critical problems that contributed to the program’s shortcomings. One major issue was the lack of a finalized business case and other essential documentation. The project evolved into an IT-focused initiative rather than an organisational change program, which led to misalignment with its original goals.
Additionally, the Health Department was found to have inadequate communication strategies, leaving both the public and stakeholders in the dark about the program’s progress. There was also a failure to provide sufficient briefings to Ministers, which resulted in Parliament not being adequately informed about the challenges and decisions made regarding the program.
Current Status and Financial Implications
Since taking over the program, DPAC has improved governance and planning for the HRTP. However, Mr. Thompson noted that the program still faces significant risks because many of the issues left unresolved by the Health Department remain unaddressed. He pointed out that the business case for the HRTP had not been finalised by March of this year, making it difficult to assess the program’s likelihood of success.
To date, DPAC has spent $19.7 million on the program and anticipates requiring an additional $53.1 million to complete it. This brings the total expected cost to $119.8 million. The auditor-general issued three key recommendations to address these concerns:
- The Health Department must ensure approved business cases are developed before starting substantive work on any IT projects.
- DPAC should finalise its business case before proceeding with the HRTP.
- DPAC must use well-defined project gates to resolve key design issues.
Reactions from Government Officials
Premier Jeremy Rockliff expressed disagreement with some of the findings, calling them “incomplete” and “potentially misleading.” He argued that the report did not accurately represent the context of the program or the complexity involved in such a large-scale reform. Similarly, Katherine Morgan-Wicks, DPAC secretary, disputed the report’s conclusions, stating that the HRIS/HRTP program should be viewed as a single initiative rather than two separate stages.
Despite these criticisms, both departments accepted the auditor-general’s recommendations and claimed they had already been implemented. The HRTP business case was approved this month, marking a step forward in addressing the program’s challenges.
Public Concerns and Calls for Accountability
Independent MP Peter George raised concerns about the waste of taxpayer funds, highlighting the importance of the auditor-general’s role in holding the government accountable. He praised Mr. Thompson’s efforts in ensuring transparency and preventing further misuse of public resources.
As the program continues, the focus remains on resolving the outstanding issues and ensuring that future initiatives are better planned and managed. The lessons learned from this experience will be crucial in guiding the state’s approach to digital transformation and public sector reforms.
