"The purpose of the act is to encourage people to speak up about serious wrongdoing in the workplace and protect them from losing their jobs or being mistreated. We know, however, that the act is not working as well as it should," Hipkins said.
"It is seen as weak and confusing and this needs to change. The law needs to be strengthened, it needs to be fair and it needs to be easy to understand.
"Most importantly, citizens who speak up in the public interest need to have confidence the law will protect them from punishment and reprisal."
A summary produced by the State Services Commission of the consultation it held with a range of public and private sector organisations found key areas for reform.
Among them was consensus on the need for an independent oversight body which would provide advice, assess complaints to determine which body should handle them, set standards and monitor compliance and investigate complaints about the investigation process.
There was also an appetite for the introduction of a statutory duty for organisations to have simple, clear and user-friendly procedures for disclosures to encourage staff to "do the right thing and speak up".
The areas for reform identified during sector consultation align with the Government's own options, which include clarifying the act, ensuring organisations have good processes and reporting obligations, and establishing stronger oversight and a single port of call for advice to make it easier for people to report.
"These are options only, and nothing has been decided," Hipkins said.
The public has been asked for its input from now until December 7, with the State Services Commission expected to report back early next year.
Harrison, a ministry senior manager, stole $726,000 from the Ministry of Transport and was later convicted.
In the aftermath, State Services Commissioner Peter Hughes ordered an investigation which found the three ministry employees who raised concerns about her suffered disadvantage, including hurt and humiliation, because of their whistle-blowing.
It also found ministry workers were uncertain of the complaints process for whistle-blowers, and were fearful about the repercussions of speaking out.