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.