MBIE spent $50.7 million on a biometric system before cancellation with no benefits. Health NZ spent $72 million on an IT programme facing delays. The Treasury released a new assurance framework on 30 October 2026 to impose earlier checks on such investments.
Past Failures Highlight Risks
High-risk digital projects have consumed substantial public funds without delivering results. MBIE's Biometric Capability Upgrade project ran for nearly seven years and ended with $50.7 million spent and $42 million written off. Health NZ's HSAAP programme incurred $72 million in contractor costs by September 2024.
Other examples include the Department of Internal Affairs civil registration replacement and Ministry of Justice audio-visual links programme, both receiving poor Gateway ratings.
New IDA System Starts 1 November
The Digital, Equipment and Change Assurance Framework (DECAF) introduces Investment Decision Assurance (IDA) reviews. It replaces the Gateway process and Infrastructure Priorities Programme from 1 November 2026.
IDA covers data, digital, specialist equipment and organisational change investments. High-risk proposals require all six review points.
Point 1, Strategic Assessment, confirms genuine need and alignment with government priorities. It provides an early Go/No go decision for Cabinet.
Review Costs and Process
Each IDA review costs the sponsoring agency $75,000 excluding GST. The process takes about eight weeks plus time for agencies to respond.
Reviews are booked 9-12 weeks in advance. Independent teams assess strategic alignment, value for money, deliverability and other areas.
Transition and Future Review
Gateway reviews started before November 2026 continue until December. New proposals use IDA.
The policy faces review in 2027. Agencies raised concerns during consultation about administrative burden and capacity.
Pipeline and Objectives
A $13 billion digital investment pipeline over five years shows 59 percent of core projects behind schedule and 85 percent rated high risk.
Since 2008 Gateway reviews covered projects worth about $45 billion. The new framework aims to reduce waste through earlier intervention and better information for Ministers.
Treasury Assurance Unit handles DECAF reviews with input from the Government Digital Delivery Agency. Te Waihanga manages infrastructure separately.
The changes support fiscal discipline by enforcing accountability on major Crown spending.
