4. Procurement

Since our 2021 report, departments have improved guidance for emergency procurement. 

Victoria has now put in place a clear, whole-of-government policy for procuring and managing PPE. This reduces the risk that the issues we identified in our 2021 report – such as poor coordination, elevated prices and departments competing for scarce stock – will reoccur in future. 

3. Managing grants

DJSIR managed most COVID-19 related grants. It informed the government that, of the $6.2 billion paid for its 3 main grant programs, up to $397.0 million was paid to high-risk, and potentially ineligible recipients. 

By 30 June 2025, DJSIR had written off $72.5 million of grant payments it made incorrectly and deemed as unrecoverable. Additional payments, approximately $6.4 million, may also be written off in future years. 

1. Our key findings

What we examined

Our review followed 3 lines of inquiry:

1. Have departments implemented their action plans from our 2021 report Management of Spending in Response to COVID-19?

2. Has the Department of Jobs, Skills, Industry and Regions (DJSIR) addressed recommendation 7 from our Auditor-General's Report on the Annual Financial Report of the State of Victoria: 2022–23 report, related to its management of grants?

5. Fleet replacement

Fire authorities collectively need around $1.5 billion from 2024–25 to 2033–34 to make sure their fire trucks are fit for purpose, reliable and safe. But they only have around $390.4 million identified in current funding and future grants. 

As part of the state Budget process, FRV and CFA have reduced the scope of their funding proposals and prioritised fleet replacement according to the highest service risks. 

DEECA has sought only a small share of the funding it needs to replace its fire trucks, despite longstanding defects and safety risks.