The Auditor-General responded on 19 June 2026 to correspondence from Julian Leeser MP dated 29 May 2026, requesting that the Auditor-General conduct an investigation to examine the effectiveness of the National Indigenous Australians Agency in its oversight of Commonwealth expenditure related to town camps and remote Indigenous communities.

Auditor-General's response

19 June 2026

Julian Leeser MP
Shadow Minister for Education
Shadow Minister for Indigenous Australians
Member for Berowra
Parliament House CANBERRA ACT 2600

By email: julian.leeser.mp@aph.gov.au

Dear Mr Leeser

Request for a performance audit on oversight of Commonwealth expenditure related to town camps and remote Indigenous communities

Thank you for your correspondence dated 29 May 2026 requesting a performance audit of the effectiveness of the National Indigenous Australians Agency in its oversight of Commonwealth expenditure related to town camps and remote Indigenous communities.

I am currently finalising the Australian National Audit Office’s (ANAO’s) Annual Audit Work Program (AAWP) for 2026–27. The AAWP reflects the ANAO’s audit strategy and informs the Parliament, government entities and the public of the planned audit coverage for the Australian Government sector. The 2026–27 AAWP is expected to be published on the ANAO website in early July 2026. The draft 2026–27 currently contains a potential audit topic Delivery of the Central Australia Plan.

I have considered the request made in your letter and plan to reposition this potential audit topic on the draft 2026–27 AAWP to examine administration of Australian Government grants funding aimed at improving living conditions, such as security and health, in town camps throughout the Northern Territory. The potential audit would focus on principles 4 (outcomes orientation) and 6 (achieving value with relevant money) of the Commonwealth Grants Rules and Principles.

If I choose to commence this potential audit in the implementation of the AAWP, details will be provided on the ANAO’s Performance audits in progress webpage.

Yours sincerely

Dr Caralee McLiesh PSM
Auditor-General

Correspondence from Julian Leeser MP

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Transcript of letter from Julian Leeser MP

Dr Caralee McLiesh PSM 
Auditor-General 
By email: External.Relations@anao.gov.au

29 May 2026

Dear Auditor-General,

I write in my capacity as Shadow Minister for Indigenous Australians to ask that you undertake an urgent audit of the effectiveness of the National Indigenous Australians Agency in its oversight of Commonwealth expenditure related to Town Camps and remote Indigenous communities.

The urgency of the issue is self-evident. The recent death of Kumanjayi Little Baby has highlighted the unsafe living conditions for children in Town Camps and some remote Indigenous communities—and in particular the Old Timers Camp in Alice Springs from where Kumanjayi Little Baby was taken.

The risks to children are obvious. Children are being raised in homes which in some cases appear not to have working showers or cooktops, where there are no locks on the doors, and where they are exposed to alcohol, crime and violence. These risks should not be tolerated for any Australian child for one minute more.

Nevertheless, significant Commonwealth funding for groups which are responsible for these Town Camps and remote communities—and related services and programs—has not resulted in a safe environment for children. Funding to the Tangentyere Council Aboriginal Corporation, for example, which is associated with the Old Timers Town Camp in Alice Springs, is a case in point. In Estimates on 26 May 2026, NIAA officials were questioned about $70m in Commonwealth spending directed towards Tangentyere Council from that agency. Officials specifically noted as follows:

I would also say that we are not the only funder of Tangentyere. So we are one of many.

Subsequent investigations suggest Tangentyere is in fact in direct receipt of around $81.6m in Commonwealth funding across at least 38 different grant or contractual agreements from at least 7 different agencies. A list is attached. This list does not include arrangements over recent years which have now concluded, or arrangements that are currently on foot where Tangentyere Council has been the recipient of funding indirectly—such as the $3.2m project for a Community Justice Centre referred to by officials from the Attorney-General’s Department in Estimates on 25 May 2026, in relation to which Tangentyere is a consortium partner but not the funded entity.

It is worth noting that this spending coincides with a near-doubling of executive pay by Tangentyere Council, as was acknowledged by officials in Senate Estimates on 26 May 2026.

Plainly, this spending from across the Commonwealth has not been effective in creating a safe environment for children. What is particularly concerning, however, is that there appears to be no coordination or central oversight, nor any work to map the net effect of Commonwealth expenditure to material improvements in conditions on the ground. There is no holistic view.

Rather, the clear impression is that funding arrangements are siloed. Instead of looking at the overall impact of Commonwealth expenditure across the board, each official or agency appears to be focused on whether compliance and reporting targets were met within the specific framework of the grant arrangements that they administer. This approach was exemplified in response to questions to the NIAA from Senator Nampijinpa Price in Estimates on 26 May 2026:

Senator Nampijinpa Price: So you’re comfortable, then, with outcomes as you see them?

Witness: For the services that we fund Tangentyere for – yes.

Further questioning also highlighted the lack of central coordination or a holistic approach:

Senator Nampijinpa Price: How much money has been directed to Tangentyere Council in total from across the Commonwealth since May 2022?

Witness: I’m sorry Senator, I wouldn’t have that figure. I could only speak for the NIAA funding.

This lack of coordination and failure to advance a holistic whole-of-government approach runs counter to the function of the NIAA as set out in the Executive Order by which it was established. That order specifies that its functions are, among other things:

i. to lead and coordinate Commonwealth … implementation and service delivery for Aboriginal and Torres Strait Islander people; […]

vi. to …coordinate the delivery of community development employment projects; […]

viii. to coordinate Indigenous portfolio agencies and advance a whole-of-government approach to improving the lives of Aboriginal and Torres Strait Islander people;

Moreover, there is presently an oversight gap at the Parliamentary level: in the absence of cross-portfolio Estimates hearings dedicated to the Indigenous Australians portfolio, the Parliament has no single forum to examine the net impact of Commonwealth programs on Indigenous Australians.

The need for greater accountability for expenditure on these matters is recognised to at least some degree across party lines. On 8 May 2026, for instance, the Member for Lingiari, told ABC radio that:

…the Commonwealth does need to take more of a lead and show more leadership in terms of where does the money go, why are we still seeing these issues, why are we still seeing kids falling through the gap and dying…

I ask that you establish an audit of the effectiveness of the National Indigenous Australians Agency in its oversight of Commonwealth expenditure related to Town Camps and remote Indigenous communities as soon as practicable, in the interests of ensuring that Commonwealth expenditure is effective in ensuring the safety of children.

Yours sincerely,

Julian Leeser MP

Attachment: List of current grants and contractual arrangements with Tangentyere