David Tune announced his retirement on Friday, after 38 years in the public service.
Finance Minister Mathias Cormann released a statement, describing him as an “outstanding public servant”.
"He has made an enormous contribution to public policy and government administration in Australia, in particular across social and economic portfolio areas," he said.
Mr Cormann also thanked Mr Tune for his work in preparing the federal budget, handed down earlier this month.
The announcement of his retirement follows the dismissal of Treasury secretary Martin Parkinson, who will on in his job until after the November G20 leaders' meeting.
Mr Parkinson made headlines earlier this week when he was spotted dining with Palmer United Party leader Clive Palmer and Communications Minister Malcolm Turnbull in Canberra.
He was one of four senior public servants dismissed when the Abbott Government was elected in September.
While his tenure was extended, those of three department heads - Andrew Metcalfe at Agriculture, Don Russell at the Industry Department and Blair Comley at Resources, Energy and Tourism - were not.
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