Transport for NSW released $334M in Regional Roads Fund grants without completed business cases, above-policy contingency approvals, and non-compliance with the Grants Administration Guide. Councils received funding ahead of standard assurance stages. The audit found no documented outcomes and inadequate oversight of council-led projects.
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$334.0M of Australian taxpayer money was wasted at Transport for NSW. Transport for NSW released $334M in Regional Roads Fund grants without completed business cases, above-policy contingency approvals, and non-compliance with the Grants Administration Guide. Councils received funding ahead of standard assurance stages. The audit found no documented outcomes and inadequate oversight of council-led projects.
Spread across Australia's 10.8 million households, that's roughly $31 per family — enough in total for funding 223 fully equipped school classrooms.
NSW Auditor-General Report #422 (6 May 2026) — "Regional Roads Fund" — audited $334M in election-commitment funding ($215M TfNSW-led, $105.4M council grants). Findings: funding was approved without completed business cases; TfNSW did not comply with the mandatory Grants Administration Guide when issuing funding agreements to councils; funding was released early in project lifecycle, increasing budget risk; councils lacked required grant compliance documentation; above-policy contingency funding was approved without documented justification; and TfNSW provided inadequate oversight of council-led projects. No documented outcomes assessment mechanism exists for the program. Audit recommendations are in progress.
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