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abuse Department of Infrastructure
$1.2B

Ministers overruled their own experts to hand $1.2 billion to whoever they wanted

Ministers intervened to change grant outcomes in nearly a quarter of assessed applications — overriding the recommendations of the public servants they employ. $1.2 billion in grants were approved without completed assessments. No published reasons. 41% of assessment panels didn't declare conflicts of interest.

On Their Watch
KG
Katy Gallagher
This happened on Gallagher's watch as Finance Minister, June 2022–present. Responsible for Commonwealth grants administration guidelines
SB
Simon Birmingham
This happened on Birmingham's watch as Finance Minister, Aug 2018–May 2022. Grants overrides occurred predominantly 2019–2022

What This Means

$1.2B of Australian taxpayer money was misused at Department of Infrastructure. Ministers intervened to change grant outcomes in nearly a quarter of assessed applications — overriding the recommendations of the public servants they employ. $1.2 billion in grants were approved without completed assessments. No published reasons. 41% of assessment panels didn't declare conflicts of interest.

Spread across Australia's 10.8 million households, that's roughly $111 per family — enough in total for funding roughly 10 public hospitals for a full year.

  • $1.2 billion in grants were approved without completed assessments against the published eligibility and selection criteria.
  • Only 34% of grants had milestone reporting in place, and conflict of interest declarations were missing for 41% of assessment panel members.
  • This represents a systemic breakdown of the merit-based grants framework.
Amount Spent
$4,800,000,000
Original Estimate
$4,800,000,000
Waste / Overrun
$1,200,000,000
Cost Overrun
0%

Analysis

The ANAO audit of grants administration found that ministerial offices intervened to change funding outcomes in nearly a quarter of assessed applications, overriding the merit-based assessments conducted by the department. $1.2 billion in grants were approved without completed assessments against the published eligibility and selection criteria. Only 34% of grants had milestone reporting in place, and conflict of interest declarations were missing for 41% of assessment panel members. This represents a systemic breakdown of the merit-based grants framework.

Sources

https://www.anao.gov.au/work/performance-audit/administration-grants
Category: abuse
Severity: high
Agency: Department of Infrastructure

What Needs to Change

Action Required

End the practice of ministers overriding merit-based grant assessments with no accountability.

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Impact Scorecard

Updated 30 Apr 2026

Tracking the pressure trail — from publication to policy change. Empty boxes show what's left to do.

📄 Finding published Published 2026-04-30
🔗 Shared 289 times
📰 Media coverage 3 articles
🏛️ MP contacted / responded 5 MPs contacted
Parliamentary question raised
⚖️ Policy change initiated
💰 Estimated annual savings if fixed $400.0M/year if fixed
Complete In progress Not yet
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The Full Reckoning

3 active investigations. 15 completed. 0 in the queue.

Rank Finding Amount Status
1 $7.8 billion of your taxes paid to consultants who left nothing behind $7.8B Active
2 $3.3 billion in dodgy NDIS claims slipped through because nobody was watching $3.3B Active
3 CIMIC Donated $540K to Labor, Liberal and Nationals — Collected $3.1B in Government Construction, 41% Without Open Tender $3.1B Active
4 Thales Australia Donated $195K to Labor and Liberal — Landed $2.2B in Defence Contracts Through Restricted Tender $2.2B Investigated
5 $2.1 billion in government contracts handed out without competition — no bids, no questions $2.1B Investigated
6 Defence blew $1.8 billion over budget on IT projects — and they still don't work properly $1.8B Investigated
7 Ministers overruled their own experts to hand $1.2 billion to whoever they wanted $1.2B Investigated
8 The aged care regulator spent $890 million and can't show it made a single nursing home safer $890.0M Investigated
9 PwC Donated $270K to Labor and Liberal — Then Bagged $700M in Advisory Contracts, Including Confidential Tax Reform Work $697.4M Investigated
10 $719M in community grants flowed to coalition marginal seats at more than double the rate of safe seats $290.0M Investigated
11 Three major charities quietly took 57% of a $402M fund meant for small Indigenous community organisations $80.6M Investigated
12 Services Australia's IT modernisation with Accenture blew $75 million over budget $75.5M Investigated
13 The Australian National University got $175M from a research grants program that chose recipients without competitive bids $29.8M Investigated
14 Home Affairs' IT contractor bill blew up 135% — $18 million became $42 million, no rebid $24.3M Investigated
15 PricewaterhouseCoopers charged Defence $54 million for HR consulting — $22 million more than agreed, no rebid $22.2M Investigated
16 The Bureau of Meteorology's AWS migration cost $22 million more than planned — and nobody shopped around $22.0M Investigated
17 Deloitte built a public service analytics tool for $12.7 million — three times the budget, zero competition $7.9M Investigated
18 Ernst & Young charged double to evaluate an Indigenous health program — hired directly, no competition $4.7M Investigated
$23.6B total waste identified — and counting $23.6B