The Australian Taxation Office will receive $70 million over two years to prepare to migrate from its existing data centre provider.
According to Budget 2019-20 papers, the investment is to occur from 2018-19 for preparatory work required so the ATO move to an "alternative data centre facility".
The funding will be used to identify the full cost of activities required to actually complete the migration.
"The Government will also provide $6.9 million over four years from 2019-20 to support additional analytical capabilities within the Treasury and other agencies," the report stated.
This follows the recent announcement of a new hosting strategy being carried out by the Digital Transformation Agency.
In order to reduce the risks, a new certification of facilities will be rolled out for data centre providers participating on whole-of-government panels, with the certification being based on the degree of sovereignty assurance they provide to government.
Two new certifications will be developed including Certified Sovereign Data Centre, which will represent the highest level of assurance and is only available to providers that allow the government to specify ownership and control conditions.
The next will be the Certified Assured Data Centre, which is designated to safeguard against risks of change of ownership or control through financial penalties or incentives.
Canberra Data Centres is the data centre provider behind four of the six businesses certified to store Protected data from government agencies, those being Vault Systems, SlicedTech, Dimension Data and Microsoft's Azure and Office 365 certified to store Protected data from government agencies.