NSW Digital Licence Initiative Criticized for Escalating Expenses and Significant Hold-ups
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Quick Overview: Essential Insights from the Licence NSW Program Difficulties
- The Licence NSW digital platform has encountered significant delays and budget overruns, with only a small portion of its planned services operational.
- Initially estimated at $166.5 million in 2021, the total expenditure now surpasses $300 million, with an extra $133 million needed.
- The platform was intended to unify over 130 licensing programs from 30 government entities by 2025, which has now shifted to 2029.
- Currently, just 52 licence categories are operational, falling well short of the initial goal.
- Older systems like OneGov GLS are still partially functional, with decommissioning delayed until 2026.
- Challenges in customising Calytera’s Amanda software have resulted in prolonged development schedules.
- Restructuring within the Government Technology Platforms division has added further complications to the delivery process.
- The estimated economic advantage has increased to $850 million over a decade — contingent upon the program’s successful completion.
Significant Digital Transformation Encounters Obstacles
Introduced in 2021, the Licence NSW Program was promoted as a substantial upgrade in digital government services. Aimed at centralising and digitising over 130 distinct industry and occupational licences from 30 departments, the goal was to replace the outdated Siebel-based OneGov Government Licensing System (GLS).
Funded by $166.5 million from the Digital Restart Fund, the Department of Customer Service (DCS) chose Calytera’s Amanda platform for the overhaul. The Amanda software is utilized worldwide for licensing and regulatory compliance solutions, providing ready-to-use functionality. However, the expectation of quick deployment has not been realised.
Targets Missed and Confusing Progress Updates
Although the DCS initially slated the migration for completion by the end of 2025, that timeline has now slipped to the fiscal year 2029. Internal documents and official reports indicate discrepancies in progress tracking. Some reports suggest only eight licensing programs have been moved, while others indicate 16. Most recently, Minister for Customer Service and Digital Government Jihad Dib noted that 52 licence types were active — a stark contrast to the more than 130 initially promised.
Why Amanda Wasn’t the Perfect Fit
The Amanda platform was selected for its adaptability and modular features. However, NSW regulators required tailored workflows and data structures, leading to significant customisation needs. Initially, the DCS anticipated that 64% of Amanda’s core functionality could be reused across all programs. In reality, this belief proved overly ambitious, as regulators sought unique features that considerably delayed the rollout.
Rising Costs and Budgetary Challenges
The financial burden has been increasing. A $10 million emergency allocation was approved in November 2023 just to keep operations afloat. In June 2024, another $62.5 million was designated in the state budget to assist in migrating the remaining 80 licence types. Currently, the DCS is preparing to seek an additional $133 million for “parameter and technical adjustment” funding, alongside $196 million in new policy proposal funding to support Government Technology Platforms (GTP), the division overseeing this initiative.
Economic Expectations Versus Realities
Initial projections estimated that the Licence NSW program would yield $600 million in economic advantages over ten years. However, this figure has since been revised to $850 million, according to statements made during the 2024 Budget Estimates. Nevertheless, with the project’s slow progress and escalating costs, it remains uncertain whether these anticipated benefits will materialise.
Staffing Changes Exacerbate Delivery Challenges
Amid these difficulties, the GTP division underwent a substantial restructuring. The Public Service Association (PSA) reported that 112 permanent employees were left without ongoing positions, with many roles transitioned to temporary contracts. This restructuring likely disrupted continuity and hampered delivery for a project already facing technical and organizational obstacles.
What Lies Ahead?
Key migrations — including the high-risk work schemes and licences for NSW Police and real estate agents — are now scheduled for between mid-2024 and late 2026. However, internal documents characterize these schedules as “tentative.” Meanwhile, the GLS platform, which was meant to be decommissioned, will remain operational until at least 2026.
Conclusion
The Licence NSW program serves as a cautionary example of digital transformation efforts. Ambitious in scope, it has encountered escalating technical, financial, and organizational issues. With the timeline now extended to 2029 and over $300 million already spent or committed, the NSW Government faces considerable pressure to fulfil its commitment to streamlined and effective licensing services. Whether the state’s residents and businesses will reap the full rewards remains an unresolved issue.
Q: What does the Licence NSW program entail?
A:
Licence NSW is a governmental initiative aimed at consolidating and digitising over 130 occupational and industry licences into a cohesive digital platform. It seeks to simplify the application and renewal process through 30 agencies in NSW using the Amanda software from Calytera.
Q: What is causing the program’s delays?
A:
Delays are primarily due to underestimating the complexity involved in migrating a variety of licensing schemes, the requirement for extensive software customisation, and changes in staffing. The Amanda platform necessitated more adaptation than initially projected to satisfy diverse agency demands.
Q: How much has already been invested in the project?
A:
As of mid-2024, funding for the project has totaled over $240 million. The Department of Customer Service is looking for an additional $133 million to complete the project by 2029, in addition to $196 million for ongoing operational support.
Q: Which licences have already been processed?
A:
Licences for activities such as asbestos demolition, conveyancing, individual security officers, recreational fishing, paintballing, commercial agents, and specific plant items have been transitioned. Currently, 52 licence types are reportedly active, although this number is contested.
Q: What are the anticipated economic advantages of this initiative?
A:
The NSW Government predicts the program will yield $850 million in economic benefits over the next decade. These include lower administrative costs, enhanced compliance, and improved service for licence holders.
Q: When is the project expected to wrap up?
A:
The original completion date was set for 2025, but the program has now been extended to the 2028–29 fiscal year. Key deadline milestones are still seen as tentative, and the project could experience further delays.
Q: What role does Calytera’s Amanda platform play?
A:
Amanda serves as the primary software platform for managing licences digitally. It facilitates regulatory processes such as applications, renewals, inspections, and compliance. However, its standardised nature necessitated extensive modifications for context-specific use in NSW.
Q: How has the restructuring of Government Technology Platforms impacted progress?
A:
The restructure resulted in the displacement of over 100 permanent staff, many of whom transitioned to temporary roles. This likely disrupted project continuity and contributed to delays and delivery obstacles.
