Federal grants audit delayed for the third time

The report is expected to reveal how much the federal government spends on grants and was originally due to be published by the Australian National Audit Office (ANAO) in April this year.

The review will assess spending recorded on the GrantConnect system, which federal agencies are required to use.

The auditor has released a series of email updates this year simply noting, without explanation, that the publication date has moved, first to July, then October and then November.

The purpose of the audit is “to provide transparency of, and insights on, government grants expenses and Commonwealth entities’ self-reporting of grants on GrantConnect, for the past four years from 2021–22 to 2024–25”.

Commonwealth grants spending comprises about 30 per cent of the total estimated $125 billion annual distribution of grants in Australia, the most recent SmartyGrants analysis suggests.

The total value of federal grants distributed in 2023–24 was $38.5 billion.

While the ANAO did not respond to queries from Grants Management Intelligence about the status of the report, its 2025–26 annual report, published in September, blamed “external pressures, including rising costs and delays in activity by audited entities” for its failure to meet some performance targets.

The ANAO has also repeatedly delayed the findings of an audit of defence program grants.

The report on the Skilling Australia’s Defence Industry grants program was due in April. The auditor is now preparing the report, but the findings are not expected to be made available until December.

The report will assess whether the program has met Commonwealth rules, examine funding design and administration, and review whether applications were properly assessed, funding decisions were well-informed, and evaluations were properly performed.

MORE

Tap here to subscribe to updates on the status of the report on how much the federal government spends on grants.