The Australian Taxation Office has re-negotiated its agreement with Accenture in order to continue working on its distressed Change Program, terminating its present bond with the IT services Company and establishing a new agreement.

ATO Second Commissioner, David Butler said that it has announced the name of the interim commissioner, as the Accenture agreement is due to be completed on June 30 2010.

“We are saying that we have negotiated with Accenture a completion to the current contract, and any further work we do with Accenture will be on the basis of the new contract”, he added.

In an earlier statement, ATO had said that it has already spent an amount worth $435 million on its agreement with Accenture as the changed program was noted in 2004 via a fixed price settlement.

Nonetheless, the Australian IT has noted that there are some additional contracts shared between the pair, which is ranging into the millions.

Last week, Butler told that the total Change Program cost till 30 June, will amount to $820 million.

However, none out of the ATO or Accenture have responded, as of now. Butler said that by the end of July 2011, the old system will be totally dissolved.