Victorian Minister for Information and Communication Technology, Marsha Thomson also outlined plans for a levelling of insurance requirements for ICT contracts to better show the actual level of risk.

The proposed changes will ensure significant industry growth and is a step towards ensuring Australians are good producers of ICT, according to the Australian Information Industry Association (AIIA) CEO Rob Durie.

He said intellectual property is frequently one of the most contentious issues in negotiating contracts and the change to allow retention of IP by the contractor is expected to result in cheaper costs and more innovative offerings.

"International research of developed economies has revealed that even greater productivity is possible if IP is generated in the economy and can be commercialized," Durie said.

"The decision on IP, risk-based liability and insurance requirements should become the standard for all governments in Australia.