Victoria's $39bn Covid spending blowout exposed by auditor

Summarised from 2 outlets · Updated 22 Oct, 09:50 · Archive

Victoria's Auditor-General found the state spent at least $39bn on its Covid response, with hundreds of millions paid to ineligible recipients or written off.

Victoria's Auditor-General has released a report finding that the Andrews government spent at least $39bn on its Covid response, with hundreds of millions lost to waste or ineligible recipients.

The audit found at least $12bn was spent on Covid grants, with up to $397m paid to high-risk or potentially ineligible recipients. The Department of Health wrote off more than $771m of unused PPE equipment between 2023 and 2025. A further $252m was spent on Covid-related legal expenses. The Department of Jobs, Skills, Industry and Regions wrote off $72.5m in grants determined to have been paid to ineligible applicants, and another $75.4m in Covid and flood grants paid in error.

In 2025, the department identified a further $249m in grants needing eligibility investigation, though it assessed these as having a high probability of being eligible after corroborating data with other agencies. The Auditor-General found the sample size small and potentially biased. The department stated that the administrative cost of case-by-case audits would be unlikely to be matched by recovered funds.

The report highlighted the absence of clear information about the ongoing financial impact of the pandemic on Victoria's finances. Daniel Andrews, who was premier during the pandemic, resigned from politics in 2023. He was succeeded by Jacinta Allan, who resigned earlier this year. Ben Carroll is the current premier.

How it is being reported

• Victoria’s $39bn Covid response exposed as auditor reveals hundreds of millions in wasteA damning new audit has exposed one Aussie state’s eye-watering Covid spending blowout - with the true cost to taxpayers still unknown.The West Australian · 22 Oct, 09:20
• Victoria’s $39bn Covid response exposed as auditor reveals hundreds of millions in wasteA damning new audit has exposed one Aussie state’s eye-watering Covid spending blowout - with the true cost to taxpayers still unknown.Perth Now · 22 Oct, 09:20

In this story: Victoria · Daniel Andrews · Jacinta Allan · Ben Carroll · Victoria's Auditor-General's Office · Department of Health · Department of Jobs, Skills, Industry and Regions

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