NSW racing grants program 'not effective', audit finds

The audit, tabled in Parliament on April 9, was conducted by Auditor-General Bola Oyetunji and assessed the Department of Creative Industries, Tourism, Hospitality and Sport's administration of the Racing for the Regions program, which funded upgrades to tracks, stables and grandstands at racecourses outside Greater Sydney.

Racing NSW – the statutory regulator for thoroughbred racing in NSW, established under the Thoroughbred Racing Act 1996 – received the grant as a single recipient and was responsible for delivering all 14 projects.

Among the findings:

• The funding deed was signed after three of the projects it covered had already been completed
• Project information in the deed was nearly two years out of date
• Fewer than half of governance meetings were documented
• No evaluation requirements were included, leaving Racing NSW under no obligation to report on whether the program's promised economic benefits were being delivered.

The audit recommended that by June 2026, the department should:

• actively monitor and fully document oversight of remaining projects, including any changes to delivery method, timelines or scope
• request that Racing NSW evaluate and report on achievement of the benefits outlined in its original business case.

It also recommended that the department develop and document a risk-based grants administration and assurance plan covering performance measures, risk identification, delivery timeframes, payment milestones and reporting arrangements.

Both the department and Racing NSW accepted the recommendations.

Read the full report