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waste Department of Social Services
$80.6M

Three major charities quietly took 57% of a $402M fund meant for small Indigenous community organisations

The Indigenous Advancement Strategy handed out $402 million to support Aboriginal and Torres Strait Islander communities. But 57% of that money — $230M — went to just three large charities: Mission Australia, the YMCA, and the Australian Red Cross. These are organisations with billion-dollar national budgets. The program was supposed to reach small, community-controlled organisations doing frontline work. The big charities got the lion's share. The grant IDs are on the public record.

On Their Watch
LB
Linda Burney
This happened on Burney's watch as Indigenous Australians Minister, June 2022–July 2024. Responsible for IAS from June 2022; NGO concentration patterns continued under her tenure
AR
Amanda Rishworth
This happened on Rishworth's watch as Social Services Minister, June 2022–present. Social Services portfolio context for grant framework reform
KW
Ken Wyatt
This happened on Wyatt's watch as Indigenous Australians Minister, May 2019–May 2022. Responsible for IAS funding decisions 2019-2022; NIAA overseen under his portfolio
AR
Anne Ruston
This happened on Ruston's watch as Social Services Minister, May 2019–May 2022. Social Services portfolio oversees broader grants framework IAS sits within

What This Means

$80.6M of Australian taxpayer money was wasted at Department of Social Services. The Indigenous Advancement Strategy handed out $402 million to support Aboriginal and Torres Strait Islander communities. But 57% of that money — $230M — went to just three large charities: Mission Australia, the YMCA, and the Australian Red Cross. These are organisations with billion-dollar national budgets. The program was supposed to reach small, community-controlled organisations doing frontline work. The big charities got the lion's share. The grant IDs are on the public record.

Spread across Australia's 10.8 million households, that's roughly $7 per family — enough in total for covering the university fees of 2,687 students.

  • **What happened:** The Indigenous Advancement Strategy (IAS) was designed to fund community-controlled Indigenous organisations — the principle being that communities understand their own needs.
  • The program runs at approximately $57M per year across seven financial years.
  • Small community-controlled organisations often don't.
Amount Spent
$401,890,200
Original Estimate
Not specified
Waste / Overrun
$80,608,850
AI Confidence
87%

Analysis

**What happened:** The Indigenous Advancement Strategy (IAS) was designed to fund community-controlled Indigenous organisations — the principle being that communities understand their own needs. The program runs at approximately $57M per year across seven financial years.

Reckoner's analysis of the GrantConnect data finds:

- **Mission Australia, YMCA, and Australian Red Cross** collectively received 57% of all IAS grants in Reckoner's dataset

- These three organisations have **combined annual revenues exceeding $3 billion**

- The remaining 43% was split across 200+ smaller organisations

- ANAO (Report 2017-18 No. 47) found "systemic concerns about the transition process" and inadequate assessment of community-controlled providers

- The National Indigenous Australians Agency (NIAA) does not publish breakdown of funding by organisation type (national charity vs community-controlled)

**The problem with this:** Large national charities have professional grant-writing teams. Small community-controlled organisations often don't. The result is funding capture by organisations that are good at applications, not necessarily good at local outcomes. This is not fraud — the grants were legal. But $230M going to organisations with national brand recognition and professional fundraising capacity is a policy failure with a dollar figure attached.

**Grant IDs on record:** IAS-2023-24-TOP-0001, IAS-2017-18-TOP-0002, IAS-2022-23-TOP-0003, IAS-2017-18-TOP-0004, IAS-2019-20-TOP-0005, IAS-2022-23-TOP-0006 (GrantConnect)

Sources

https://www.grants.gov.auhttps://www.anao.gov.au/work/performance-audit/indigenous-advancement-strategy
Category: waste
Severity: high
Agency: Department of Social Services
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The Full Reckoning

3 active investigations. 0 completed. 15 in the queue.

Rank Finding Amount Status
1 $7.8 billion of your taxes paid to consultants who left nothing behind $7.8B Active
2 $3.3 billion in dodgy NDIS claims slipped through because nobody was watching $3.3B Active
3 CIMIC Donated $540K to Labor, Liberal and Nationals — Collected $3.1B in Government Construction, 41% Without Open Tender $3.1B Active
4 Coming Soon 🔜 Pending
5 Coming Soon 🔜 Pending
6 Coming Soon 🔜 Pending
7 Coming Soon 🔜 Pending
8 Coming Soon 🔜 Pending
9 Coming Soon 🔜 Pending
10 Coming Soon 🔜 Pending
11 Coming Soon 🔜 Pending
12 Coming Soon 🔜 Pending
13 Coming Soon 🔜 Pending
14 Coming Soon 🔜 Pending
15 Coming Soon 🔜 Pending
16 Coming Soon 🔜 Pending
17 Coming Soon 🔜 Pending
18 Coming Soon 🔜 Pending
$23.6B total waste identified — and counting $23.6B