The ANAO could assess reporting on Closing the Gap in Australian Government entities’ annual performance statements. The objective of the National Agreement on Closing the Gap (Closing the Gap Agreement) is to overcome the entrenched inequality faced by too many Aboriginal and Torres Strait Islander people so that their life outcomes are equal to all Australians. The Closing the Gap Agreement includes four priority reforms and 17 socio-economic outcome areas with 19 targets.

Australian Government departments of state are responsible for leading the Commonwealth’s actions to progress achievement of priority reforms, outcomes and targets relevant to their respective portfolios. Section 5 of the Public Governance, Performance and Accountability Act 2013 sets out the objects of the Act, which include requiring Commonwealth entities to provide meaningful performance information to the Parliament and the public. Annual performance statements are an important way of showing the Parliament and the public how effectively Commonwealth entities have used public resources to achieve desired outcomes.