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Media Releases
December 4, 2025
The Federal Opposition today said the revelation of $2.3 billion in unlawful payments in breach of section 83 of the Constitution is no simple error — it is a blank cheque culture inside a Government that has lost control of spending, debt and basic financial discipline.
For months, Australians were kept in the dark about two separate and serious financial law breaches: a defective legal instrument and a misapplied spending authority. Both failures allowed billions in taxpayer funds to be paid out illegally, without the proper approvals required by the Constitution.
Worse, it has emerged through Senate Estimates that the Finance Minister wasn’t told and only uncovered via media reports, the Department of Finance wasn’t properly briefed, the Prime Minister’s department wasn’t consulted, the Secretary of the Treasury wasn’t informed for months, and the Parliament only learned the truth after questions were asked and the media exposed it.
Crucially, the Australian National Audit Office confirmed in evidence that every breach of Australia’s public finance law is “serious” — underscoring just how grave these repeated unlawful payments are and why Australians should expect much more from their Government.
“If $2.3 billion can simply walk out the door without anyone checking the law, what else is this Government hiding? This is not transparency, it is a cover-up culture, and Australians are paying for it,” said Mr O’Brien.
The Opposition said the scandal exposes something far larger than a single program: it is the symptom of a Government addicted to spending, unable to enforce guardrails, and presiding over a public service that failed to protect the nation’s finances when it mattered most.
“This wasn’t one mistake, it was a system failure the Government tried to keep quiet. While the Trillion- dollar Treasurer goes on yet another spending spree, debt keeps climbing and inflation is being pushed higher by their own decisions. Labor’s answer was to sign off billions behind closed doors and hope no one noticed,” said Mr O’Brien.
At a time when:
• Gross debt is climbing towards $1 trillion,
• Spending as a share of GDP is stuck at near-record highs, and
• Inflation is being pushed higher by government-driven demand,
Australians deserve confidence that every dollar is lawful, authorised and accountable. Instead, the departments responsible for enforcing the rules were missing in action, and the Government concealed key facts until forced to reveal them.
Adding to the concern, the Australian Public Service Commission (APSC) has refused to answer basic integrity and accountability questions, even when those questions relate directly to whether public servants met their obligations to safeguard taxpayer funds.
The APSC’s refusal to provide answers that are clearly in the public interest only deepens the sense that the system is closing ranks instead of coming clean.
“The public service has a duty to safeguard taxpayers’ money, yet key departments were silent until the media forced their hand. The Government promised accountability, but what we got was secrecy, spin and $2.3 billion in illegal payments,” said Senator Paterson.
The Opposition is calling for:
• A strengthened escalation regime, so financial law breaches cannot be quietly buried until months later.
• Clear consequences for repeated breaches of constitutional spending law.
“Australians are doing it tough. They play by the rules. The least they deserve is a Government that tells the truth and follows the law, not one that hides breaches until they are exposed,” said Senator Paterson.
This Government promised discipline. Instead, it delivered a $2.3 billion in illegal payments and a public service that failed to uphold the most basic principles of financial stewardship.
This is not just an error. This is a warning.
The Opposition will continue to pursue full transparency and accountability on behalf of Australian taxpayers.
ENDS