Allan government rejects integrity agency’s budget bid

A bid for extra funding by a Victorian integrity agency has been rejected by the Allan Labor government in a blow that threatens to put pressure on its ability to investigate corruption.

Victorian Premier Jacinta Allan. Picture: NewsWire / Nadir Kinani

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A bid for extra funding by one of Victoria’s integrity agencies has been rejected by the cash-strapped Allan Labor government in a blow that threatens to put more pressure on its ability to investigate corruption and misconduct in the state.

The Victorian Ombudsman – responsible for investigating and resolving complaints about the ­actions of state government agencies – said it had to “be realistic” about its service delivery after it revealed in its 2025-26 annual plan that Victorian Labor largely re­jected its bid for increased base funding.

“The budget bid was to increase our base funding to enable us to fulfil our mandate to improve public administration and to address critical business risks,” the report read.

“Our budget bid was largely unsuccessful and while we remain committed to our new strategic plan 2025-29, with increasing costs and wages we have had to be realistic in terms of what we can deliver.

“In the short term, we will work to find efficiencies, but for the longer term we will need to continue advocating for adequate and sustainable funding.”

“Inadequate sustainable funding to deliver on our legislative mandate and key strategic initiatives” was listed as a strategic challenge in the annual plan, alongside a “possible likelihood” ranking.

The report did not detail the quantum of the agency’s budget bid but confirmed it had received funding of $22.71m for 2025-26, up from $21.9m in 2024-25.

The report comes after the Victorian Ombudsman, Marlo Baragwanath, told the Victorian parliament’s integrity and oversight committee in November last year that the agency’s funding was inadequate.

“We have picked up a number of functions over the last few years – particularly conciliation, the prevention and education function and complaints-handling reviews – with very little in the way of additional funding,” Ms Baragwanath said.

She told the committee that since 2019, the agency had been forced to rely on Treasurer’s advances to top up its funding.

Ms Baragwanath said this made it “very difficult to plan going forward and to adequately perform functions such as prevention” and called for more transparency with the budget bid process.

The integrity and oversight committee chair, Tim Read, told The Australian the funding of state integrity agencies was of ­concern.

“The committee is concerned about integrity agency funding and in our recent report we recommended the government have another look at a system that would remove the conflict of interest where the government decides the funding for the agencies which scrutinise it,” Dr Read said.

“Integrity agencies, such as the ombudsman, are so important for exposing and deterring mal­administration and corruption and I always think governments should take a long-term view and strengthen integrity agencies while they have the chance.

“They might regret not doing so in the future.”

A Victorian government spokesperson defended Labor’s funding of the Victorian Ombudsman.

“We have almost doubled funding for the Victorian Ombudsman since we came into ­government [in 2014] – providing the office with the funding and ­resources they need to focus on improving public administration and ensuring fairness for Vic­torians in their dealings with the public sector,” the spokesperson said.

The Victorian Ombudsman was contacted for comment.