The Albanese government's economic mismanagement and inability to keep Australians safe and secure have been exposed in the first Senate Estimates hearings of 2026.
Labor's out of control spending, which is driving up inflation and interest rates, was laid bare exposing the Albanese government's false narrative on the economy.
Leader of Opposition in the Senate, Senator Michaelia Cash said: "Labor's addiction to spending tax-payers money continues unabated and we were able to expose this once again at estimates."
"We exposed there has been a $54 billion blowout in the medium-term budget bottom line since the election and MYEFO shows there will now be no budget surpluses for a decade,'' Senator Cash said.
"This is why living standards have declined and Australians are hurting under Labor,'' she said.
Deputy Leader of the Opposition in the Senate, Senator Anne Ruston said: "Senate Estimates has once again demonstrated the wasteful spending and lack of transparency from the Albanese Government, while families face rising costs and declining access to essential services."
"Australians deserve responsible and transparent economic management that puts Australians first, but sadly that is the opposite of what has been revealed," Senator Ruston said.
Treasury forced to reveal $54 billion budget blowout
Treasury officials have been forced to admit the Albanese Government's budget bottom line has deteriorated by $54 billion over the medium term a figure they tried to keep hidden from the public.
Officials initially refused to provide the dollar figure, arguing it was "not helpful" and preferring to hide behind complex GDP percentages. However, after sustained questioning from Senator Paterson it was argued that there is no valid grounds to withhold the information, Treasury finally capitulated, confirming the massive $54 billion deterioration.
Crucially, this admission debunked Treasurer Jim Chalmers' claim that the budget worsening was primarily due to falling revenue. Officials confirmed that over the medium term, increased government payments not revenue write downs will be the majority driver of the deficit, exposing the Treasurer's spin as misleading.
PBO says Labor's spending driving a decade of deficits
The Parliamentary Budget Office (PBO) has confirmed that the Albanese Government's reckless spending is the primary driver of worsening budget deficits, which are now forecast to continue for the next ten years.
PBO officials admitted that budget deficits have deteriorated in every single year of the medium term compared to previous forecasts. Crucially, the PBO debunked the Treasurer's spin that this was solely due to falling revenue. Officials confirmed that 60 per cent of the deficit variation is driven by increased government payments.
This admission exposes the reality of Labor's economic mismanagement, leaving Australian households to pay the price for a structural deficit that shows no sign of delivering a surplus for a decade.
CLIP: https://youtu.be/M6UoswkSEHQ
Minister admits no plan to fix historic economic slump
The Albanese Government has admitted it has no new plan to save the economy after the Reserve Bank of Australia (RBA) forecasted the lowest economic growth in its history.
Finance Minister Katy Gallagher refused to even acknowledge concerns over the RBA's latest figures. Instead of offering a strategy to reverse the decline, the Minister deflected with vague references to "data and digital work" and "energy," while inexplicably trying to blame the Opposition for an economy her party has been managing for four years.
With growth forecast to hit rock bottom, Labor's refusal to take responsibility confirms they are out of ideas and out of time, leaving Australian households to pay the price for a government that has given up on managing the economy.
CLIP: https://youtu.be/bYOuD-ssSjA
Gallagher twists reallocated spending as savings
Finance Minister Katy Gallagher has been caught trying to rebrand $114 billion of new spending as "savings" in a bizarre exchange during Senate Estimates.
Senator Paterson said the Government has increased spending by $142 billion, showing that there is no net saving at all. Minister Gallagher refused to acknowledge this basic math. Instead, she claimed credit for "finding savings" while simultaneously admitting that every single dollar "saved" was immediately spent elsewhere, plus billions more.
This creative accounting confirms that Labor has no plan to restrain spending, with the Minister unable to name a single net saving that has actually improved the budget bottom line.
CLIP: https://www.youtube.com/watch?v=pzy3KBXlw3U
Gallagher admits no plan to reach NDIS savings target
Finance Minister Katy Gallagher has been forced to admit the Albanese Government has no plan to deliver on its promised NDIS savings, despite publicly announcing a new lower growth target.
The Minister conceded that while the Government has announced a goal to reduce NDIS growth to 5-6%, they have done zero work to cost this or identify how it will be achieved. In a embarrassing exchange, neither the Minister nor her officials could even say how much money the current 8% growth target is supposed to save taxpayers.
This lack of detail exposes the Government's economic announcements as hollow spin, setting "targets" for the media without the policy decisions or budget work required to actually deliver them.
CLIP: https://youtu.be/Eiz9KCRKbUs
Antisemitism Royal Commission consultation mystery
Mystery surrounds the consultation or lack of such a process undertaken by the Albanese Government on the terms of reference for the Antisemitism Royal Commission. Senator Penny Wong, representing the Prime Minister, and Department of Prime Minister and Cabinet officials were unable to name who was consulted about the final terms of reference for the Royal Commission.
While being questioned by the Leader of the Opposition in the Senate, Senator Michaelia Cash both Senator Wong and officials took on notice questions about who was consulted and when. "Prime Minister Albanese has clearly failed to ensure that there was adequate consultation on the terms of reference on the Royal Commission into antisemitism. Australians deserve to know which Jewish groups, if any, were consulted on the Royal Commission's final terms of reference,'' Senator Cash said.
Take it on notice
Senator Wong and Department of PM&C took on the notice who experts were that the PM said advised against holding a Royal Commission into Antisemitism.
Senator Cash: "The Prime Minister stood up and stated in answer to a question that actual experts and experts had advised him not at that stage to establish a royal commission. He's been asked on several occasions since who those experts are, and he has not yet named them or said where they're from. So this is now our opportunity to find out where they're from.
Senator Wong: "Well, I'd have to take that on notice.''
Bureaucratic silence on Bondi
The Department of Home Affairs refused to be drawn (even as the key government department responsible for national security, intelligence and law enforcement) on whether there were any failures or gaps in its performance in the lead-up to the Bondi terrorist attack.
Its senior officials also did not answer the fundamental question of whether radical Islam was the main driver of the attack - instead saying that this was a matter for police to determine.
Segal: action should have come sooner
Anthony Albanese's handpicked combatting-antisemitism envoy Jillian Segal has conceded she wished that her plan to counter Jewish hatred had been implemented "faster" in the months before the Bondi terror attack.
Seven months to the day since her recommendations were publicly presented to the Government, Ms Segal acknowledged it was the "pace" of action she would have liked to have seen accelerated, particularly in the face of so many warning signs and a rising tide of antisemitism prior to the massacre.
Limited training on growing threat
Seven months after the release of Special Envoy Jillian Segal's Plan to combat antisemitism in Australia, only 0.8% of all staff at the very Department most entrusted with the task of eradicating anti-Jewish hatred have participated in training recommended by her.
The training, which is designed to help public servants know how to best deal with antisemitism, has so far involved just 129 staff from the total of 15,750 in the Department of Home Affairs, and has not proceeded beyond a "pilot" stage. Senior officials from the Department also appeared to disclose that none of the training had been delivered prior to the Bondi massacre, and that - even if and when it is 'fully' completed - only around 200 officers might ever receive it.
Home care wait list continues to skyrocket
Under questioning from Senator Ruston, Department officials revealed that the home care wait list has skyrocketed once more to 131,366 older Australians as at 31 December - an increase of more than 24,000 in just two months. The average wait time has also blown out to 9 months - but for many older Australians this just to receive 60% of the package and it is then an additional 17 week wait for the full level of support they have been assessed as needing. This new data shows Labor has made no progress in fixing the aged care crisis it has created, which is leaving thousands of older Australians stranded in hospital beds because support is not available to them at home.
Aged care star rating system a failure
Labor's aged care star rating system has been exposed as broken, with officials confirming that the Northgate Aged Care Home in South Australia has retained 5 stars for compliance despite the unlawful use of restraints on residents. At the same time, the Department has cut funding per resident to aged care homes who are struggling to meet Labor's onerous staffing requirements due to ongoing workforce shortages. Senator Ruston highlighted how the system is clearly failing residents and families if facilities struggling with workforce shortages are being penalised while homes with serious compliance failures are being rewarded. Older Australians deserve choice and control, not more red tape that doesn't deliver better outcomes.
Health ministers meeting fails to prioritise aged care
Despite the scale of the Albanese Government's aged care crisis and ongoing warnings from States and Territories about its contribution to hospital bed block, officials confirmed the issue was not placed on the agenda for Friday's Health Ministers Meeting. The Health Department Secretary acknowledged the Commonwealth failed to include it, with States forced to raise it later under 'Other Business'. This demonstrates that addressing its own aged care crisis is not a priority for the Albanese Government, which continues to shirk its responsibility while hospitals are left to manage the consequences.
Migration pressures probed
Senator Scarr highlighted systemic pressures and weaknesses in Australia's migration and visa system, focusing on escalating backlogs and the lack of medium term and long term planning.
He drew attention to the extraordinary surge in study‑visa appeals, noting that student‑visa matters had grown from 3% to more than 39% of the Administrative Review Tribunal caseload (over 50,000 active appeals) and the continuing growth in the number of people onshore who were unsuccessful in their application for a protection visa.
Under Senator Scarr's questioning, it emerged that the Department of Home Affairs had not invited submissions from the public in relation to the Permanent Migration Programme for the year ending 30 June 2026. This was a departure from the previous year. There has been no explanation. There is no commitment to undertake consultation for the next year. This underlines the lack of transparency and long-term planning in relation to immigration policy under the Labor Government.
Pezzullo wasn't told and neither are other Australians
Continuing a long-entrenched pattern from senior Labor figures, Minister Murray Watt dodged Opposition questions about the reasons for the dubious removal of key agencies from the Home Affairs portfolio during the first term of the Albanese Government.
Only days after former Departmental Secretary Mike Pezzullo revealed that he wasn't even consulted on the approach (including by saying "I don't know what their actual logic was … because it was never explained to me"), Senator Watt did not specifically outline why Labor shifted the AFP, ASIO and the ACIC out of Home Affairs in its first term. He chose this approach even in the face of mounting public concern and criticism that these changes significantly compromised whole-of-government effectiveness in dealing, in particular, with the rising tide of antisemitism across Australia.
NZYQ crisis still uncontained
Home Affairs officials revealed that two more murderers and three more sex offenders from the notorious NZYQ cohort have now been released into the community on Bridging Visa R arrangements. Among the 335 NZYQ individuals now released, there are, in total, 15 convicted of murder or attempted murder and 98 convicted sex offenders.
Meanwhile, more than two years after the High Court's bombshell NZYQ decision, just six of the group have been relocated to Nauru. Despite repeated assurances to the contrary, Labor's response on this issue is still clearly failing to stem the numerous problems caused by this dangerous cohort.
Black market report blacked out?
The Government's Illicit Tobacco and E-cigarette Commissioner was unable to dispel the suggestion that the content of at least one taxpayer-funded report written for her had since become the subject of a non-disclosure agreement.
The report on the 'nicotine black market' authored by Deakin University's Dr James Martin is rumoured to have contained a range of information that is compromising for the Albanese Government. Yet the ITEC Commissioner, Amber Shuhyta, was unable to clarify whether and where the report would be published and if anyone was required to sign a confidentiality agreement in relation to the work.
Labor's ISIS brides stance unchanged
Labor conceded that its position on the return of 'ISIS Brides' to Australia remains unchanged - even after the ISIS-motivated Bondi massacre.
It was revealed last year that the Albanese Government had allowed six of this group of people (with direct family links to ISIS) to arrive in Australia during 2025, and that more of them were expected in the future. This approach was reinforced by the release in December of notes of previously secretive discussions between Home Affairs Minister, Tony Burke, and NGO campaigners.
Yet, notwithstanding that police allege that the Bondi terrorists displayed an Islamic State flag on their car and filmed an ISIS-inspired video ahead of their attack, Minister Murray Watt said that the Government had chosen not to change anything about its position on the repatriation of the ISIS Brides.
I'd be speculating
Staggeringly, Home Affairs Secretary Stephanie Foster repeatedly refused to clarify her own handwritten notes from a meeting with Minister Burke and Save the Children about ISIS brides, claiming she would only be "speculating" about what they meant.
Ms Foster declined multiple opportunities to explain what the notes portrayed about Ministerial comments or commitments, even though they were her own record of an important discussion on a major national security issue.
To make matters even worse, when she was asked by Senator Duniam to explain - in these circumstances - why she had retained the notes at all (given they later formed part of an official response to a Question on Notice), the Secretary again said she "would be speculating" about decisions that she made around 18 months ago.
Inexplicable DFAT decision on poisoning case
DFAT officials made the inexplicable decision not to inform the families of Laos poisoning victims Bianca Jones and Holly Morton-Bowles of the outcome of a case involving people charged over the incident despite being in court for the verdicts.
Under questioning by Shadow Minister for Foreign Affairs Senator Michaelia Cash, DFAT officials revealed they maintained regular contact with the families in January updating them several times on the status of the case. But the department admitted a deliberate decision was taken not to inform the families of the outcome of the case until they had analysed what the verdicts meant in relation to upcoming cases directly related to Bianca and Holly's deaths.
When asked by Senator Cash why DFAT had not told the families of the outcome and informed them they were analysing what it meant for the cases directly linked to their daughters DFAT secretary Jan Adams said: "I can only say that I wish they had."
PBO confirms hidden plan to cut 28,000 public servants
The Parliamentary Budget Office (PBO) has confirmed that the Albanese Government's budget relies on a hidden plan to slash the public service or significantly blow out its spending forecasts.
PBO officials admitted that the Government's own figures imply a massive reduction in Average Staffing Levels (ASL). While earlier estimates suggested a cut of 22,000 staff, officials conceded that this figure is now 28,000 following the mid-year budget update.
This admission leaves the Government with only two options: proceed with the mass firing of 28,000 public servants to balance their books or admit their budget numbers are a fiction and force Australian taxpayers to foot the bill.
$2.2 million blowout for Greens party room
Department of Parliamentary Services (DPS) officials have admitted that the cost to renovate the Greens' new party room has ballooned to over $2.2 million, a five time increase from its first projected cost.
DPS officials defended extraordinary expenses, including $50,000 for custom-made carpet and $153,000 for joinery and attempted to explain the expanded costs as two separate projects despite both "projects" taking place in the same part of the building. Senate President Sue Lines admitted she approved the project based on a $764,000 estimate and was never informed of the cost blowout, yet insisted the work proceed to ensure the room was ready for the new Parliament. Senator Lines refused to say if she thought the $2.2 million final expense for the project was a good use of taxpayer funds or not.
Wong and PM&C refuse to budge on budget cuts letter
Minister Penny Wong has refused to answer basic questions about a letter sent by the Acting Prime Minister ordering government departments to find savings in the lowest 5% priority spending, in what seems to be a secretive cost-cutting exercise across government ahead of the next budget.
Minister Wong and PM&C officials repeatedly took questions "on notice," refusing to confirm the nature of the letter and whether it was sent to national security agencies like ASIO and the AFP.
Despite Labor's promise of transparency, Minister Wong hid has hid behind cabinet and ERC processes to avoid admitting whether the Government forced intelligence agencies and the wider Australian public service to look for these cuts.
Labor splurges $400k on fancy retreats
In the middle of a cost-of-living crisis, the Albanese Government has been caught spending over $400,000 on "leadership retreats" for senior public since mid-2024.
Australian Public Service Commission (APSC) officials defended the lavish spending, arguing that taking executives away to such luxury locations as the Peppers Craigieburn in Bowral is "essential" for their development. When pressed on the true cost to taxpayers, officials admitted their figures only included the APSC's portion of the bill, conveniently excluding flights, travel allowances, and other expenses paid for by individual departments.
This partial accounting means the real cost to taxpayers is likely far higher than the $400,000 admitted. Despite claims of transparency, the Minister refused to commit to providing a full breakdown of the total cost, leaving Australians in the dark about exactly how much of their money is being funnelled into these high-end getaways.
Security agencies will be forced to find budget cuts
Finance Minister Katy Gallagher has admitted that the Albanese Government's directive for 5% spending cuts applied to frontline national security agencies, including ASIO and the Australian Federal Police (AFP).
The Minister confirmed that "no agency was exempt" from the order to identify their "lowest 5% priority spending for the upcoming 2026-27 budget. This is despite Gallagher acknowledging she received a letter from the AFP Association warning of "chronic and worsening shortages", specifically in counter-terrorism teams a warning she dismissed as just another union asking for more staff, something as a Labor Minister, she is very familiar with This comes in contrast to Minister Wong, who, the day prior, refused to say if national security agencies had been asked to divert resources to look into potential bottom 5% cost cuts.
Alleged Medicare fraudsters given visas and bailed
Under the Albanese Government, individuals allegedly responsible for an $8 million Medicare fraud scheme while inside an immigration detention centre have been released on bail and granted visas to live in the community.
In a shocking admission during Senate Estimates, Services Australia officials confirmed that despite facing serious charges, the accused fraudsters are no longer in detention, nor in the prison system. Instead, they have been released into the Victorian community, raising serious questions about community safety.
Services Australia bosses hid legal breaches
Services Australia executives have admitted to failing to inform their own Minister for months that the agency was operating unlawfully, despite a damning Ombudsman's report titled "Following the Law is not Optional."
CEO David Hazelhurst conceded that the agency knew it was in breach of legislation but failed to provide a detailed brief to Minister Katy Gallagher until months after the issues were identified.
Despite the Minister claiming she expects to be notified "immediately" of any legal breaches, she was kept in the dark for an extended period. This breakdown in communication and accountability raises serious questions about the professionalism and processes of Services Australia.
No progress on environment approvals
Serious doubts have been raised about Labor's much-touted productivity improvements. Following last year's government roundtable, the Prime Minister promised fast-tracked environmental approvals, claiming new laws would cut timeframes from years to months and months to weeks.
Yet, when asked how many businesses would switch to the new streamlined approval pathways, the government could not identify a single applicant intending to do so. Similarly, while bilateral approval deals with the states were promoted as another productivity boost, no clear timeframe for their delivery could be provided.
Labor's environment funding uncertainty
Questions have been left unanswered about environmental spending and outcomes. Minister Watt was unable to say how many koalas had been saved by the more than $70 million in funding that now faces a looming cliff. The government could not confirm how much federal funding had been delivered in response to the South Australian algal bloom, nor how much had been allocated to measures such as dinner vouchers - nearly three years on from when scientists first raised concerns.
After four years of promises and headlines, there remains a dark cloud over delivery, transparency and timeframes. Australians deserve to know what they are getting for their money and they deserve better from this government.
Indigenous corporations fail on timely annual reports
ORIC has confirmed that 2,061 Indigenous corporations failed to lodge their 2024-2025 annual reports by the 31 December deadline.
ORIC has advised that around 74 per cent of these entities are classified as small corporations, meaning they are not required to submit full annual reports. However, the remaining corporations are still subject to reporting obligations designed to ensure transparency and accountability.
These are organisations funded by taxpayers to deliver better services, outcomes and opportunities for Indigenous Australians. Failing to meet even the most basic governance and reporting requirements undermines confidence that public money is being used as intended.
Garma Festival spending explodes to $800,000
The Albanese Government has spent nearly $800,000 of taxpayer money on the 2025 Garma Festival at a time when Closing the Gap outcomes for Indigenous Australians continue to go backwards. This level of expenditure raises serious questions about Labor's priorities and its commitment to delivering practical improvements in people's lives.
In total, funding included a $484,000 grant to the festival, $198,332 on tickets, $54,320 on flights, $21,555 on accommodation and $18,555 on 'general expenses'.
This scale of spending, using funds intended to improve outcomes for Indigenous Australians, would rightly frustrate and anger both Indigenous communities and taxpayers. Once again, it reflects an Albanese Government more focused on symbolism and showcase events than on practical action that delivers real results on the ground.
Superannuation overpayment farce
For six consecutive years, Indigenous Business Australia overpaid $120,824 in superannuation to key management personnel.
Indigenous Business Australia CEO David Knights has now confirmed that the decision on whether to recover these taxpayer funds rests with the very board that oversaw the failure.
That board is considering whether it is cost-effective to spend more taxpayer money to fix the error, or whether the overpayments should simply be written off.
Wong goes quiet on entitlements
Under questioning from Senator James McGrath Minister Wong fell silent when questioned about her colleagues and their use of taxpayer money.
When asked about how Minister Wells and Minister Butler "observed due economy" when flying their families to the snow and the Australian Open, Minister Wong fell silent and stumbled upon the few words delivered in her justification.
What we've uncovered in the last few months, is a government that has treated taxpayer funds as a personal expense account and has failed to acknowledge this. It is a far cry from being the "most transparent government ever".
Government struggles to explain $7.5 million review
Senator McGrath's questions to Special Minister of State Don Farrell about the Government's $7.5 million review of the 'parliamentary ecosystem' were met with an especially obscure answer - even for a government that has made a habit of hiding from scrutiny. When asked about the review and what could be considered the parliamentary ecosystem, the Minister responded in his own words, "ecosystem is the system of the eco", leaving the committee baffled as to what the Albanese Government has planned for the review.
Labor spends $153,000 of taxpayer money on plant hire
In a cost of living crisis, the majority of Australians would expect their government to be ensuring taxpayer funds are used appropriately and scarcely. However, Senator James McGrath this week found the Albanese Labor Government has done nothing to scrutinise spiralling bills for department expenses.
In the Environment and Communications Committee hearing, both department officials and the Minister failed to justify a $153,000 bill for indoor and outdoor plant hire for their offices.
Perhaps even more concerning, the Secretary told the committee "to be honest, I have no recollection of even seeing a plant in that building".
4.7 million reasons to hide
The Albanese Government is refusing to release the data behind their claims that 4.7 million social media accounts of young people were deactivated on December 10 last year.
Despite a promo tour spruiking the success of the ban, and even a photoshoot riding bicycles, the Prime Minister, the Minister for Communications and the eSafety Commissioner remain tight lipped about exactly where those 4.7 million accounts came from and exactly how many under 16's are actually off social media.
