Business · Companies · 1 hr ago
IBAC finds $257m in COVID grants went to ineligible Victorian businesses
An investigation by Victoria’s anti-corruption commission found that about $257 million in COVID grants went to more than 9,000 ineligible businesses.
The grants supported businesses affected by lockdowns in Victoria, including Melbourne, during the pandemic.
Businesses needed to be registered for GST, but some were able to qualify by backdating their registrations.
IBAC said officials identified a possible loss of $285 million in 2021, while about $257 million was paid out.
Senior public servants withheld information about the problem from ministers and other officials, and misleading information was circulated.
The commission said this left the government unable to respond quickly, while whistleblowers helped bring the conduct to light.
IBAC found no evidence of political pressure to withhold the information, but said the conduct failed public-sector standards.
IBAC found that about $257 million in COVID-19 support grants went to more than 9,000 ineligible Victorian businesses.
The grants were part of a program for businesses affected by pandemic lockdowns.
The businesses qualified by backdating their GST registrations, although GST registration was required to receive support.
IBAC found that public servants withheld information about the suspected loss from ministers and other officials.
The report said there was no evidence of political pressure to withhold the information.
- Who
- More than 9,000 Victorian businesses received grants they were not eligible for. IBAC investigated the handling of the scheme by public servants.
- What
- IBAC found that about $257 million in COVID-19 grants went to ineligible businesses, and that officials withheld information about the suspected loss.
- When
- The grants were made during the COVID-19 pandemic. The report was released on October 15, 2026.
- Where
- Victoria, Australia.
- Why
- Businesses backdated their GST registrations to qualify for grants. IBAC said officials withheld information about the suspected loss.
IBAC
Martin Pakula
Explanation for withheld information
IBAC
IBAC said information was withheld in circumstances where officials may have expected it to anger the minister or reflect poorly on the department.
Martin Pakula
Pakula cautioned against giving credence to the suggestion that presumed ministerial displeasure explained the failure to provide full and truthful information.
The Business Costs Assistance Program supported businesses affected by pandemic lockdowns.
The department identified that more than 9,000 ineligible businesses had claimed grants by backdating GST registrations.
Public servants suspected that $285 million may have gone to businesses that had backdated their GST registrations.
IBAC released its report on the grants and officials’ handling of the suspected loss.
- Grants found ineligible
- About $257 million
- Ineligible businesses
- More than 9,000
- Suspected loss identified by officials
- $285 million
- Program
- $4.5 billion Business Costs Assistance Program
- Report released
- October 15, 2026
2 sources
What people are saying
Frank and fearless advice is essential to safeguarding limited public funds against fraud and corruption
While officers within the department spoke up, their leaders failed to act, meaning the government was left uninformed and unable to move quickly to address this suspected significant loss of public funds
In my view, it is dangerous for IBAC to provide such a signal, either to the public service or indeed to Ministers.
the report was more evidence that Labor mismanaged taxpayer money during the pandemic.