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March 14, 2026
The Albanese government has killed off an annual audit that has exposed years-long delays affecting Defence's biggest projects following a push by the department to throw a secrecy net over weapons and equipment delivery schedules.
The Australian National Audit Office reported on Defence's major projects for the past 18 years, with its most recent audit showing $80bn in acquisitions running a cumulative 33 years late. The ANAO accused the government in the report of obscuring the true state of delays by refusing to disclose details on key projects, including the troubled Hunter-class frigates.
Now, the Joint Committee of Public Accounts and Audit, chaired by Labor's Josh Burns, says the annual report will no longer be produced.
Information on acquisitions had become "increasingly classified", the committee said, causing a "steady reduction in the number of projects that can bereported on publicly through the Major Projects Report".
"However, maintaining scrutiny of Defence acquisition governance and performance by the parliament remains impera tive," it said.
A "robust program of scrutiny" would require Defence to provide information to the committee, which would closely examine individual ANAO audits of Defence projects.
In opposition, Labor used the annual report to score political hits on the Morrison government, with the now-Defence Industry Minister Pat Conroy accusing the Coalition of "mismanaging bil lions of dollars of acquisitions that ADF personnel need to carry out their missions".
Opposition defence spokesman James Paterson said the $59bn portfolio was in desperate need of more scrutiny, not less.
He said the Coalition would use a new parliamentary defence committee to demand greater transparency on key projects.
"In a dangerous strategic environment and with hopefully increased defence spending to come, taxpayers have every right to know their money is being spent well in the national interest," Senator Paterson said.
"Given the Albanese government's refusal to be transparent though the major projects report process ... that task must now fall to the statutory defence committee. It must accept that responsibility and be as open as possible in doing so."
Defence analyst Marcus Hellyer said the decision to axe the report spelled "the end of transparency and accountability" for Defence.
"In opposition, Anthony Albanese and Richard Marles talked a good game on transparency and accountability. In government, however, they are even worse than their predecessors," Dr Hellyersaid.
"Australian taxpayers will be the losers, as they will have no way to know whether the military capabilities they are paying for are being delivered on time and budget or indeed whether they are being delivered atall."
Inthe last report in December, Defence refused to disclose schedule details of 19 of the 21 projects it examined, after 20 projects were slapped with non-disclosure orders.
In its 2021-22 audit the last covering the Morrison government details of just four projects were heldback.
The ANAO said the government had also reset project timelines under a 2024 change to its long-term investment program, which meant that delays for affected projects were "generally reset at zero".
"The impact of non-disclosure has reduced the level of transparency to the parliament and stakeholders," the report said.