After months of speculation, Mr Hockey has confirmed that John Fraser will take on the role.
Mr Fraser is former global asset management chairman of Swiss banking giant UBS.
“Mr Fraser brings deep experience in both the public sector and, most recently, in the private sector,” Mr Hockey said in a statement. “He is well placed to guide the Treasury into a new era.
“As part of undertaking the new role, Mr Fraser will be asked to conduct a thorough review of the Treasury’s resources and capabilities.”
Mr Hockey also thanked Dr Parkinson for his “outstanding contribution to the public service since being appointed to the Treasury in 1981”
UBS group chief executive officer Sergio Ermotti also congratulated Mr Fraser on the appointment.
"I'd like to congratulate John and wish him every success as he takes on this new challenge," Mr Ermotti said. "I'd also like to thank him for the lasting contribution he has made to UBS as a leader, an executive board member and a colleague over the last two decades."