Prime Minister Tony Abbott has bolstered Malcolm Turnbull's ministerial duties, handing him greater responsibility for e-government in a push to expand the use of a single digital identity for Australians.

Mr Turnbull and Mr Abbott on Friday announced the creation of a new Digital Transformation Office, made up of developers, designers, researchers and content makers. It will work like a start-up and look to expand the use of the MyGov site across federal, state and local governments and potentially deliver big savings for the budget bottom line.

Tony Abbott and Malcolm Turnbull (pictured) have announced the creation of a new Digital Transformation Office within government. Credit:Rob Homer

The establishment of the new digital office is designed to resolve the messy division of responsibilities between several departments, including Finance and Mr Turnbull's Communications Department, for e-government services.

In an interview with Fairfax Media, Mr Turnbull said he was keen to establish a digital mailbox or platform that could be used by people to interact with every level of government.