‘A watchdog without resources is not a watchdog’: Labor accused of letting key accountability body languish | David Pocock
Labor has been accused of underfunding one of the central agencies that protect public administration, with transparency advocates and independent David Pocock criticizing commitments to the Australian National Audit Office (ANAO) in this week’s budget.
Parliament’s Joint Committee on Public Accounts and Audit had previously warned the Albanian government that the auditor-general’s finances were unsustainable and of “serious concern”, even though the number of government institutions and functions subject to audit had increased significantly.
Tuesday night’s budget included $99.8 million in new annual funding for the ANAO; This was a below-inflation increase from the 2025-26 budget appropriation of $98.2 million.
Budget documents show the ANAO’s average staffing level fell from 435 in 2025-26 to 421 in 2026-27.
The funding comes amid warnings that the ANAO will struggle to meet its targets for audit reviews of the work of government departments and major spending programmes. The agency is mandated to promote accountability and transparency through independent reporting to parliament.
In October last year, auditor general Caralee McLiesh told the Senate hearings that the ANAO had been running a continuous deficit for the last eight years and that this was no longer sustainable.
The ANAO’s annual report showed it recorded a loss of $5.3 million in 2024-25, with accumulated cash reserves required to cover the funding gap. The remaining reserves are necessary to finance obligations to ANAO staff.
The ANAO’s audit target has been reduced from 48 reports to 38-42 reports in 2025-2026, but even the lower target may not be achieved due to ongoing budget challenges. Automation, streamlined business processes and risk strategies are used to increase efficiency.
Catherine Williams, director general of the Center for Public Integrity, said key oversight bodies, including the ANAO, should be subject to separate parliamentary funding and an independent funding panel should be established to advise on appropriate levels of funding.
He warned that the budget allocation announced this week was grossly inadequate.
“A watchdog without resources is not a watchdog,” Williams said. “This is a warning sign that the government is not taking accountability seriously.
“Recent work from the Center for Public Integrity shows that key integrity bodies, including the auditor general, must be designed to withstand political pressure, including independent funding and appointment processes and robust oversight mechanisms.”
ACT independent senator Pocock said the ANAO had exposed serious failings by both the Coalition and Labor governments, including issues with grants and defense procurement.
“The auditor general is now being forced to reduce the number of performance audits the office undertakes and to discontinue the Major Projects Report, which tracks the cost and schedule of major defense acquisitions,” he said.
“This is a report that takes into account projects that are notorious for going over budget and running over time.
“This is short-sighted on every level. A well-funded ANAO pays for itself many times over by finding waste that no one else can. I will continue to press for the funding it needs to do its job.”
Pocock welcomed a small budget increase for the state ombudsman of $6.2 million over the four-year forward estimates period.
Shadow defense secretary James Paterson has previously highlighted the breakdown in the defense portfolio around the Major Projects Report, arguing that independent review and parliamentary scrutiny of spending and procurement is “more important than ever in today’s dangerous world”.
