This audit would assess the effectiveness of the Treasury in supporting value for money from the National Partnership Agreement on Asset Recycling.

The intended objective of the asset recycling initiative was to unlock funds from existing state and territory–owned assets to invest in additional infrastructure that would support economic growth and enhance productivity. A Senate inquiry in 2014 noted strong concerns about the ‘significant’ risks associated with the initiative, and effectively recommended that it not proceed in its current form. The agreement is due to expire on 30 June 2019.

An audit could consider how the Treasury managed risks to achieving value for money for the Commonwealth, including whether the overall objective of enhancing productivity was met. The audit would include consideration of program design, through Treasury’s advice to government, and whether better outcomes could have been achieved via an alternative funding mechanism.