The Queensland Treasury Corporation has dumped the core banking technology that was to have underpinned its Onlending and Investment Administration (OLIA) system project.
A spokeswoman for the Corporation told iTnews that the change in direction had occurred after a strategic review of the late-running project.
The OLIA project aimed to re-engineer the financial lending and borrowing system that the Corporation used to manage loans and investments for state government clients.
The Corporation selected Swiss vendor Temenos' T24 platform in July 2009, originally expecting the system to be live a year later.
At the time, Temenos described the Corporation as a "prestigious client" win in Australia.
The Corporation's decision to stop rolling out T24 comes after approximately $15 million in expenses incurred for the project - half in payments to Temenos and the other half in internal costs.
The project would continue without Temenos, a spokeswoman said.
"[Queensland Treasury Corporation] will now continue to develop their IT upgrade internally," she said.
"Much of the functionality developed during the project will continue to be implemented into QTC's existing IT platform."
A report by The Brisbane Times stated that the Corporation believed it could complete the project within the existing budget of $27 million.