Vic services must go digital to save $$

Victoria could reduce costs by hundreds of millions of dollars by putting simple government transactions online, a parliamentary committee has been told.

Less than one per cent of simple transactions, such as applying for a permit, are available online, leaving Victorians frustrated at having to navigate a complex system involving hundreds of websites and phone hotlines, the committee heard on Thursday.

The estimates hearing was told simple, high-volume transactions such as applying for licenses are costing the state $461 million to process.

Committee chair Labor MP Danny Pearson said Victorians were "overwhelmed and frustrated" by complicated, government-centric information and inefficient processes.

He said 55 million simple, high-volume transactions are completed each year, and if the government doesn't streamline and take Victoria Services into the digital world, cost of delivery will blow out to $700 million.

"Sixty-five per cent of Victorians would prefer to complete transactions online," Mr Pearson said.

While around 35 per cent of transactions are partly online, less than one per cent are fully digital, he said.

Department of Premier and Cabinet acting deputy secretary Ryan Phillips said the government was going to look around the different departments and agencies and try to work with already existing systems rather than buy a new one.

"This would help manage the risk to buying a new system, and also minimise the cost for government," Mr Phillips said.

If the government was to buy a system "off the shelf", it would make sure that the system would fit several departments and agencies.