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The ANAO could assess the Department of Defence’s (Defence) procurement of the MC-55A Peregrine aircraft through a United States Foreign Military Sales arrangement. The project, AIR555 Phase 1, is a first-of-type acquisition to deliver airborne intelligence, surveillance, reconnaissance and electronic warfare (ISREW) capability, based on a modified Gulfstream G550 aircraft. Second pass approval occurred in September 2017 for $1.9 billion to deliver four aircraft and supporting IT and training systems. The project’s approved budget was $2.4 billion as at 30 June 2025. AIR555 has been reported in the ANAO’s Major Projects Report since 2021–22 and was elevated to a ‘project of interest’ in September 2023 due to schedule delays. The ANAO could provide independent assurance to Parliament on Defence’s acquisition and project management of AIR555, including Defence’s management of cost, schedule, scope and integration risks.
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Airservices Australia delivers safety-critical air navigation services and aviation rescue firefighting across the national network, functions that depend on a highly specialised workforce operating under multiple industrial agreements and certification regimes. Shortfalls or mismatches in skills, numbers, locations, or rostering of this workforce can materially affect the service continuity, cost efficiency, and safety assurance of air transportation. The ANAO could examine workforce management in Airservices Australia, including whether its workforce is strategically planned, sustainably resourced, and effectively deployed.
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The ANAO could assess Services Australia’s framework for identifying and supporting vulnerable customers. Services Australia is responsible for delivering services and payments on behalf of government, including for social security, child support, emergency and health programs. Services Australia’s vision is ‘to make government services simple so people can get on with their lives’. Australians often require access to government support during periods of crisis. Services Australia must cater to customers with diverse needs, experiences, and abilities that significantly influence their interaction with the agency. Many individuals with complex needs or in vulnerable circumstances — including those experiencing financial hardship, disability, domestic violence, or crisis events — face significant barriers to engaging via online, phone, or in-person channels. As of 30 June 2024, Services Australia employed 642 social workers across 211 locations to support these high-risk cohorts. In July 2025 Services Australia launched a ‘2030 Strategy’, in which it reaffirmed its commitment to a customer-centric approach to delivering services and incorporating the needs of vulnerable people into policy and process design.
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The ANAO could examine Services Australia’s management and recovery of debt. Services Australia provides a range of payments on behalf of nine Australian Government entities. Where overpayments are made Services Australia must raise and recover debt in accordance with relevant legislation. Services Australia identifies debt through a range of activities including tip-offs and the payment assurance program. There are a range of payment options available to customers with debt, including pausing debt recovery where customers are experiencing hardship or vulnerability. For customers who received social security payments, in 2024–25, Services Australia raised 1,400,365 debts with a value of $2.4 billion and recovered $1.6 billion. For Child Support, in 2024–25 57.6 per cent of active paying parents with a debt that is under a payment arrangement. In response to the Royal Commission into the Robodebt Scheme Services Australia has developed a new debt management program in 2024–25, which it plans to review annually. A series of audits would examine the management of one or more type of debt, the aging and recoverability of debts, quality assurance programs, methods of detection, use of recovery agents, compliance and enforcement programs, performance measurement and monitoring, workforce capability and capacity and/or other matters relating to the management and recovery of debt.
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The ANAO could assess the governance arrangements in selected entities for monitoring and implementing agreed parliamentary committee and ANAO performance audit recommendations. Parliamentary committee and Auditor-General reports identify areas where administration can be improved and make recommendations to improve the delivery of outcomes. Once entities have agreed to implement performance audit recommendations, or in the case of parliamentary committee reports, the Australian Government has committed to the implementation of recommendations, timely implementation in line with the intended outcome of the recommendation is important in achieving the full benefit of the recommendation.
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