Treasurer Koutsantonis has had to cancel a critical component of a Treasury IT project to try and limit the blowout to $32 million.
Treasurer Koutsantonis was forced to admit today in Budget Estimates that the critical Stage 3 of the RISTEC project in his Department had now been cancelled. This Stage 3 of the project covered stamp duties, First Home Owner Grants and other areas.
“This means what was intended to be a comprehensive IT solution for all revenue collections will now only cover payroll tax, land tax and ESL,” said Shadow Treasurer Rob Lucas.
“This is a major embarrassment for Treasurer Koutsantonis and is a further sad indication of the financial mismanagement and waste of this Labor Government over the past 12 years.
“It is particularly embarrassing when it is Treasurer Koutsantonis’s own department that is guilty of the financial mismanagement and gross wastage of taxpayer dollars.
“This project has had a sorry history, first being approved back in 2002 at a total cost of $22.6 million. The latest estimate is now $54 million, a blowout of $32 million.”
The RISTEC project was originally described by the Government as “a replacement taxation collection system…necessary to ensure that the Government and taxpayers have a sustainable and effective revenue collection system”.
“The latest estimated completion date now just for Stages 1 and 2 is June 2015 – 13 years after originally announced and $32 million more expensive,” said Mr Lucas.
“However, it is now apparent that the blowout was going to be even greater, which has led to this decision now to cancel the critical Stage 3 component.
“Treasurer Koutsantonis and his Labor Government stand condemned for their financial mismanagement and incompetence in managing this project and taxpayer dollars.”