ATO Change Program performance audit due this week

ANAO's audit into over-budget and over-time ATO ICT change program will be tabled in parliament this week

A performance audit of the Australian Taxation Office (ATO) Change Program will be tabled in Parliament by the end of this week.

The audit, undertaken by the Australian National Audit Office (ANAO), will provide a "strategic review" of the ATO's progress on implementing the program, which aims to migrate the agency away from legacy and paper-based systems to a single, integrated core IT system.

The Change Program commenced in December 2004 at an estimated cost of $350-$450 million and was set to be completed by the end of 2007. However, the budget has blown out to double the original figure, now hitting close to $750 million.

Last week the ATO submitted its report to the Federal Parliament's Public Accounts and Audit Committee. In it ATO commissioner, Michael D'Ascenzo said there was "extraordinary pressure" on the agency's ICT expenditure and transformational change program.

"The change program is largely self-funded and underpins future service initiatives for taxpayers and provides a platform for ongoing productivity initiatives. Some delays have been experienced in finalising this program largely as a consequence of integrating new legislative requirements including significant reforms to the Superannuation system," the report read. "This has required us to maintain legacy systems for longer than anticipated. The sourcing program is putting to tender the ICT infrastructure services for the office providing telecommunications, end user computing and central computing services into the future. While every effort is being made to find savings we expect to be under pressure to operate within our budget for the next few years until these programs are finalised."

In September, the ATO's Change Program Steering Committee approved plans for the agency to commence processing income tax returns on the new system from 1 February, next year. The old system, the National Taxpayer System (NTS), will no longer be used, ending over 30 years of usage.

The latest date for completion for the project is July 2010 with business activity statements (BAS) excise and other remaining tax products to be "deployed onto the integrated core processing platform". A new portal for businesses, tax agents and BAS service providers will also be launched at this time.

"We are currently testing for the Income Tax Release which is our most complex release to-date," the report to the Public Accounts and Audit Committee read. "A pilot for the Income Tax Release commenced in September 2009 and will continue until the end of 2009. This and subsequent releases remain high risk."

Services provider, Accenture is jointly responsible for the implementation of the Change Program.

Sign up for Computerworld's newsletters to stay up to date.

Got more on this story?Email Computerworld or follow @computerworldau on Twitter and let us know.

More about: Accenture, ANAO, Australian National Audit Office, Australian Taxation Office, National Audit Office
References show all

Comments

1

Anonymous

Mon 26/10/2009 - 13:04

A debacle with Accenture reaping rewards, not the Tax Payer.

What does "largely self funded" mean ?

I'm sick of hearing the fudging when it is surely the Tax Payer's money, not as we hear constanly, "Government money" or in this case, self funded - what rubbish !

2

Anonymous

Fri 30/10/2009 - 17:59

Readers should have a look at the full Audit Report now released - go to

www.anao.gov.au

and it is the most recently released report.

Chapter 3 - FBT tax return begs a few investigative questions.....how could this possible happen in a professional organisation, with Accenture and CapGemini also watching on?

What is this really costing the taxpayer when FULL costs are factored in?

Who has been held accountable in the ATO so far, and either been dismissed or had performance pay refused? You can guess the answer to that question...

This is a disgrace which requires a lot of questions at Senate Estimates one the ANAO report is properly read.

3

Anonymous

Fri 30/10/2009 - 17:59

Readers should have a look at the full Audit Report now released - go to

www.anao.gov.au

and it is the most recently released report.

Chapter 3 - FBT tax return begs a few investigative questions.....how could this possible happen in a professional organisation, with Accenture and CapGemini also watching on?

What is this really costing the taxpayer when FULL costs are factored in?

Who has been held accountable in the ATO so far, and either been dismissed or had performance pay refused? You can guess the answer to that question...

This is a disgrace which requires a lot of questions at Senate Estimates one the ANAO report is properly read.

4

Anonymous

Fri 30/10/2009 - 19:55

Forget about the ATO Transformation/Change Program practices passing an audit check. How about passing a lie detector test. The ATO has been lying to the Australian public for the past 5 years, claiming tax payer savings, improved efficiency and productivity. Time to kill this failed project and make all ATO executives that have been actively involved in this disgrace of an IT project directly accountable.

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the Computerworld comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: federal government, Australian National Audit Office (ANAO), ATO, accenture
Whitepapers
All whitepapers
Sign up now to get free exclusive access to reports, research and invitation only events.
Featured Download
/downloads/product/205/divx-plus/

DivX Plus

Divx Plus 8 provides you with a Web Player which allows you to watch DivX, AVI and MKV videos in your web brower; you can ...

Computerworld newsletter

Join the most dedicated community for IT managers, leaders and professionals in Australia