The Australian government will spend A$13.8 million ($8.8 million) on deploying Cisco Telepresence over the next four years.
The system will be installed in more than 20 government offices across Australia, Finance and Deregulation Minister Lindsay Tannersaid.
He said the deployment would eliminate travel for hundreds of meetings each year and "deliver a significant reduction in travel costs, improve productivity and lower the impact of carbon emissions."
Telstra and Cisco will begin installing the systems at federal government offices in Melbourne in the coming months, and then in Parliament House in Canberra later this year.
"TelePresence offers big screens, with high definition sound making the option of actually choosing to hold a meeting using this technology a real and cost-effective alternative to getting on a plane," Tanner said.