This audit would examine the effectiveness of the Australian Taxation Office’s (ATO’s) and the Department of Home Affairs’ compliance with model litigant obligations (MLOs), and the effectiveness of the assistance provided to Commonwealth entities by the Attorney-General’s Department (AGD) in maintaining compliance with the MLOs.

Pursuant to the Legal Services Directions 2017, issued by the Attorney-General under the Judiciary Act 1903, Commonwealth entities have an obligation to act honestly and fairly in handling claims and litigation. Entities must reduce costs and delays in the handling of litigation and must not commence legal proceedings unless satisfied that litigation is the most suitable method of dispute resolution.

The Office of Legal Services Coordination within AGD is responsible for assisting Commonwealth entities in complying with the MLOs.