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Request for audit
Major and Local Community Infrastructure Program
Response provided
Responded: Thursday 15 October 2026
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The Auditor-General responded on 15 October 2026 to correspondence from Senator Steph Hodgins-May dated 10 September 2026, requesting that the Auditor-General conduct an investigation on the decision-making process of the Major and Local Community Infrastructure Program.
Auditor-General's response
15 October 2026
Senator Steph Hodgins-May
Deputy Leader of the Australian Greens
Senator for Victoria
Parliament House
CANBERRA ACT 2600
By email: senator.hodgins-may@aph.gov.au
Dear Senator
Request for performance audit: Major and Local Community Infrastructure Program
Thank you for your correspondence dated 10 September 2026 requesting that the Australian National Audit Office (ANAO) undertake a performance audit of the Commonwealth Major and Local Community Infrastructure Program (MLCIP).
I recently added a potential audit of the Award of funding under the MLCIP to my Annual Audit Work Program (AAWP) for 2026–27. I have also provided a submission to the ongoing parliamentary inquiry into the Major and Local Community Infrastructure Program, in which I shared lessons from our past audits of grants programs, particularly grants programs used to fund the delivery of election commitments.
I will take into account the work of the Committee’s inquiry as I determine whether, and if so, when to commence a potential audit of the program. Should this potential topic proceed, I will have regard to the matters raised in your request during planning and conduct of the audit, and details of the audit scope will be provided on the ANAO’s Performance audits in progress webpage.
Yours sincerely
Dr Caralee McLiesh PSM
Auditor-General
Correspondence from Senator Steph Hodgins-May
Transcript of letter from Senator Steph Hodgins-May
10 September 2026
Dr Caralee McLiesh PSM
Auditor-General for Australia
Australian National Audit Office
GPO Box 707
Canberra ACT 2601
Via email: ag1@anao.gov.au
Dear Dr McLiesh,
URGENT: Major and Local Community Infrastructure Program
I refer to recent analysis by the Centre for Public Integrity and subsequent media reports in relation to the allocation of funding under the Major and Local Community Infrastructure Program.
The analysis raises concerns that a significant proportion of funding under the program was allocated to predominantly Labor-held electorates, while a large number of electorates were excluded from the program altogether. It also appears that funding was allocated through an invite-only process, rather than through an open, merit-based grants process.
These reports raise serious questions about the decision-making process used to determine which electorates and organisations were invited to participate, and the basis on which funding decisions were made.
We are particularly concerned about whether appropriate safeguards were in place to ensure that political or electoral considerations did not influence the allocation of public funds, and whether the program was administered in accordance with the principles of transparency, accountability and proper use of public resources.
These concerns are particularly significant given reports that funding was allocated to a golf club in the Prime Minister's electorate, where the Prime Minister reportedly holds an honorary membership.
We therefore add our voice to those asking that you please investigate the decision-making process under this program, including the criteria and processes used to determine eligible electorates and recipients, and the conduct of any relevant parties in relation to this matter.
Given the serious questions raised about the allocation of public funds, we would appreciate your advice as a matter of urgency on whether the Australian National Audit Office will investigate these matters.
Kind regards,
Steph Hodgins-May
Senator for Victoria
Australian Greens spokesperson for democracy