Government IT Contract Blowouts
When government IT contracts go wrong. These contracts started at one price and ballooned to multiples of the original value — sometimes through dozens of amendments, sometimes with little public explanation.
12
Contracts Tracked
$8.1B
Total Cost Overrun
262%
Avg % of Original Value
| Department | Vendor | Original Value | Final Value | % Overrun | Source |
|---|---|---|---|---|---|
| Department of Defence | IBM / SAP | $1.5B | $3.5B | +133% | ANAO / Senate Estimates. ERP system due 2025, now 2030. IBM bill alone $575M. |
| Australian Taxation Office | DXC Technology(69 amendments) | $738M | $2.5B | +239% | iTnews |
| Whole-of-Government | IBM | $1.0B | $2.0B | +100% | Senate Estimates |
| Public Transport Victoria | Kamco / NTT Data | $494M | $1.5B | +204% | IEEE Spectrum / The Age. Myki original system. Delivery quadrupled from 2 to 9+ years. Lifecycle: $2.8B. |
| Queensland Health | IBM | $98M | $1.3B | +1176% | Commission of Inquiry. Payroll system. 78,000 staff received wrong pay. IBM banned for 12 years. |
| NSW Education | SAP | $386M | $755M | +96% | LMBR program across 2,208 schools. 12 years to deliver. Cost nearly doubled. |
| WA Government | Oracle / CSC | $82M | $444M | +441% | Shared Services. Scrapped 2011. Additional $370M to unwind. Agencies said legacy was better. |
| Services Australia | SAP (various integrators) | $340M | $340M | +0% | GovERP. Total write-off after 5 years. Zero usable output from 30 capabilities developed. |
| Aged Care Quality & Safety Commission | Accenture | $260M | $592M | +128% | AusTender / Senate Estimates |
| Bureau of Meteorology | Accenture | $4M | $96M | +2300% | Greens / Senate Estimates. Website failed during storms. BOM gave Accenture another $16M in Mar 2026. |
| Bureau of Meteorology | Deloitte | $11M | $35M | +218% | AusTender |
| Transport for NSW | Wipro | $113M | $158M | +40% | NSW eTendering |
Data compiled from AusTender, Senate Estimates hearings, NSW eTendering, and media reports at dates reported. “Final value” reflects the most recently reported contract value including all amendments and variations.