Finance secretary David Tune is retiring after 38 years as a public servant.
Finance Minister Mathias Cormann said Mr Tune has served governments of both persuasions with great distinction.
"He has made an enormous contribution to public policy and government administration in Australia, in particular across social and economic portfolio areas," Senator Cormann said in a statement on Friday.
Senator Cormann thanked Mr Tune for the great support and wise counsel he provided to the coalition government since the election and the preparation of the recently released 2014/15 budget.
Senator Penny Wong, who worked closely with Mr Tune for three years as finance minister under the previous Labor government, said he brought "commitment, professionalism and humanity" to his work.
"His sustained contribution to public policy making has been profound," Senator Wong said in a statement.
"The Australian Public Service is poorer for his leaving."
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