Labor’s below‑inflation ANAO funding sparks watchdog concerns

The 2026‑27 budget gives the Australian National Audit Office $99.8 million, a below‑inflation increase that will reduce staff numbers.

Labor faces criticism for allegedly underfunding a key integrity body. The Joint Committee of Public Accounts and Audit has previously flagged the auditor general’s finances as unsustainable, even as oversight responsibilities grow.

The budget papers show ANAO’s average staff level falling from 435 in 2025‑26 to 421 in 2026‑27. Funding rises only slightly from the prior year’s $98.2 million, staying beneath inflation.

Centre for Public Integrity executive director Catherine Williams said, “A watchdog without resources is not a watchdog. It is a warning sign that government does not take accountability seriously.” She urged separate parliamentary appropriations and an independent funding panel.

With fewer staff, the office may struggle to meet its audit targets, which were already trimmed from 48 to 38‑42 reports. Automation and streamlined processes are being used to offset the shortfall.

The funding gap raises questions about the ANAO’s ability to scrutinise expanding government programs and major defence projects. Observers note that any further cuts could affect the Major Projects Report, which tracks cost and schedule overruns.

Watch for the next Senate estimates hearing and any parliamentary committee response to the staffing and funding outlook.