The Racing for the Regions program signed a $61.8M funding deed with Racing NSW 21 months after the business case. Three projects had already been completed before government announced the funding. Timelines in the deed were 17+ months out of date. No evaluation requirements existed for a program exceeding $50M. The NSW Auditor-General found systemic governance failures.
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$61.8M of Australian taxpayer money was wasted at Department of Creative Industries, Tourism, Hospitality and Sport. The Racing for the Regions program signed a $61.8M funding deed with Racing NSW 21 months after the business case. Three projects had already been completed before government announced the funding. Timelines in the deed were 17+ months out of date. No evaluation requirements existed for a program exceeding $50M. The NSW Auditor-General found systemic governance failures.
Spread across Australia's 10.8 million households, that's roughly $6 per family — enough in total for covering the university fees of 2,060 students.
NSW Auditor-General Report #420 (9 April 2026) — "Administration of grants to non-public sector entities: Racing for the Regions" — examined a $61.8M grant to Racing NSW. Key failures: the funding deed was signed 21 months after the business case; project timelines in the deed were already 17+ months out of date at signing; three projects had been completed before government announced the funding (creating a compliance fiction); $800K (Tamworth) and $142K (Sapphire Coast) payments withheld for non-compliance with final reporting; no evaluation requirements were built into a program exceeding $50M (contrary to NSW policy); governance meetings were undocumented; no risk assessment was conducted before deed execution. Department accepting recommendations and developing an evaluation plan for 2026-27.
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