Australians will be offered a single "digital identity" to access all government services.
The identity will replace the tangle of usernames, passwords and processes that Australians use to log on to dozens of government agencies and departments online.
Communications Minister Malcolm Turnbull will oversee the change, which will be driven by a new Digital Transformation Office in his department.
The DTO will recruit developers, designers, researchers and content specialists working across government to improve digital services.
Mr Turnbull said it would operate more like a tech start-up than a traditional government agency.
"Interacting with government should be as easy as internet banking or ordering a taxi through an app," he said.
The minister said security and privacy of personal information would be protected.
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