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Can A Government Organisation Migrate Workloads To Azure Cloud?

Yes. Microsoft is fully compliant with the Data Sovereignty clause of any organisation, not just government. The customer has the choice to retain data in Australia or anywhere in the world. All most every Azure service have a location tag attached to the service. The customer has the option to select location during actual deployment of any Azure resources. Microsoft Azure has 54 regions in 140 countries. Microsoft is also adding more regions regularly to its cloud portfolio.

Azure Australia has four regions namely Australia East, Australia Southeast, Australia Central 1 and Australia Central 2. Australia Central 1 and Australia Central 2 have been a protected data centre status for protected information of the Federal Government, State Government, Local Government and defence contractors. All validated certification can be retrieved from Microsoft Website at this URL.