On 2 February 2023 the NSW Auditor-General released a report critical of the the administration of the first round of Bushfire Recovery grants in 2020. The total Bushfire Local Recovery Grant (BLER) scheme program amounted to $541.8 million, co-funded by the Commonwealth and NSW governments and administered by the NSW Department of Regional NSW.
The Auditor-General found that:
“The Department of Regional NSW did not effectively administer the Fast-Tracked stream of the BLER.
The administration process lacked integrity, given it did not have sufficiently detailed guidelines and the assessment process for projects lacked transparency and consistency.
At the request of the Deputy Premier’s office, a $1 million threshold was applied, below which projects were not approved for funding. The department advises that some of the projects excluded were subsequently funded from other programs.
This threshold resulted in a number of shortlisted projects in areas highly impacted by the bushfires being excluded, including all shortlisted projects located in Labor Party-held electorates.”
Some of the fire-impacted areas that missed out in the first round received grants in the second round, some nine months later.
The report received widespread media and political coverage and comment. Both the government and opposition have responded with promises to improve processes so the ‘pork-barrelling’ of community grants cannot happen again.

IBG comment
- Its disturbing that grants to traumatised and struggling communities could be politicised, but sadly unsurprising.
- All grant programs should be transparent and honest, with the Auditor General’s recommendations adopted in full.
- The NSW Audit Office plays an essential role in keeping the government honest. It is hoped other areas of bushfire expenditure will be examined to ensure the best outcomes are being achieved.
- It is noted that Resilience NSW was involved in setting up the BLER program. That agency is now abolished and the new Reconstruction Authority does not replace all functions. The IBG asserts that NSW needs an Inspector General of Emergency Management to provide independent oversight of emergency management and recovery, as in Victoria and Queensland.
- IBG issued a media release commenting on these issues, and has submitted a proposal for an Inspector General of Emergency Management to a range of government, opposition and cross-bench politicians, which can be found here.