E-government is set to receive a security upgrade with the Government committing $14.8 million to developing a system for secure online transactions.
Funding for specific IT projects was otherwise thin on the ground in this year's Budget. While a portion of the $212 million over four yearsbound for research, science and technology will no doubt feed tech projects and research and development, the authentication project is the only targeted IT allocation.
The "New Economy Research Fund" received an extra $21 million in funding over four years, bringing the total to $70 million for 2004-05.
There was no money specifically set aside for the Next Generation internet project which is intended to provide high-speed data links between the country's educational institutes.
However, the Minister of Research, Science and Technology, Pete Hodgson, is expected to make an announcement on that project next week.
The State Services Commission's e-government unit and the Department of Internal Affairs will develop a Government-wide system for exchanging information with the Government via the Internet.
Key to the system is authentication - ensuring information is shared with the intended recipients.
A number of methods, from passwords and digital certificates to encryption, can be employed as part of authentication systems.
State Services Minister Trevor Mallard said: "It is one of the key elements of e-government and will become increasingly important as agencies extend the range of their online services." The amount set aside in the Budget includes capital funding of $240,000.
The Government had ruled out the use of a universal ID card as a basis for authentication and would liaise with the Privacy Commissioner in developing the system.
The funding follows public discussion of the issue last year. The Government claims the threat of "identity theft" is great enough to risk the progress of e-government without authentication in place.
