The federal government’s audit of grants allocated by the Coalition has identified millions of dollars across more than 100 community development projects that could be axed in the October budget.
Guardian Australia understands there are about 120 projects under the Community Development Grants program that are in Labor’s sights. They were committed by the former government but not yet contracted.
The Albanese government had pledged to go through the budget “line by line” to identify savings. About 60 of the projects were Coalition election commitments and had funding allocated in the pre-election fiscal outlook with $116m allocated in 2022-23 alone.
Among the projects uncovered by the audit is a $25m grant to a resources company, Iron Road, that is more than 70% owned by a Cayman Island-based investment fund. The government is also looking at repealing a $1.3m grant for the Noosa Golf Club car park expansion – a private club that charges a $1,500 joining fee and a yearly fee of $1,242.50.
The audit has revealed that six projects had no proponent, with “no clear organisation identified as having asked for the money”, while seven projects had not been advised that their funding application had been successful.
In addition, more than $18m worth of grants had no fixed locations.
Former prime minister Scott Morrison is understood to have approved funding of projects, despite no mention in the grant program’s guidelines that this would happen. Previous prime ministers Tony Abbott and Malcolm Turnbull were also decision-makers from the start of the program in 2013.
Doubts have been raised about commitments made during the election campaign by former deputy prime minister Barnaby Joyce who wrote to the treasurer shortly after the election about two projects that he said were pledged under the Community Development Grants program.
This included$600,000 for the Armidale Rams Rugby League Club and $3m for the Guyra Early Learning Centre.
However, while the projects were announced by press release during the campaign, it is understood the decision was never communicated to the department, and the department had “no record of a decision of government being made”.
A spokesperson for the minister for infrastructure, transport and regional development, Catherine King, confirmed the Community Development Grants program was under review, and said the government was committed to a “better process”.
“The Albanese government is committed to transparency and integrity in the spending of public funds,” she said.
“The government wants taxpayers’ money to go to projects that represent good value and benefit communities, including in regional Australia.
“The upcoming budget will propose a range of changes to strengthen integrity and transparency of grants and to ensure they are fairer than they have been under the previous government.”
The Community Development Grants program was established by the Coalition in 2013 to fund their election commitments.
The closed, non-competitive fund had total funding of just over $3.2bn as of March 2022, with 1,366 projects contracted, 300 under way and 102 not yet commenced.
