Report reveals state’s ‘wasted’ Covid millions

By the Editorial Team · Saturday, October 24, 2026

Victoria’s Labor government spent nearly $40 billion on Covid-19 pandemic response efforts, but a Victorian Auditor-General’s report revealed significant mismanagement, including hundreds of millions in erroneous grant payments and millions in unused PPE written off. The findings have raised concerns about transparency and accountability, prompting calls from the opposition for improved public reporting and ongoing scrutiny of pandemic-related expenditures.

Victoria’s Labor government has come under scrutiny following a report by the Victorian Auditor-General’s Office (VAGO) that revealed nearly $40 billion was spent on the state’s response to the Covid-19 pandemic, with significant concerns raised about the management of these funds.

The report outlined that at least $12 billion was distributed in Covid-related grants, though up to $397 million of these payments were made to recipients deemed high-risk or potentially ineligible. Additionally, more than $77 million worth of unused personal protective equipment (PPE) was written off by the Department of Health between 2023 and 2025. The report also identified $252 million in Covid-related legal expenses incurred during this period.

Further investigations revealed that by June 2025, the Department of Jobs, Skills, Industries and Regions (DJSIR) had written off approximately $72.5 million in Covid grants after determining the funds had been disbursed in error to ineligible applicants and could not be recovered. An additional $75.4 million in combined Covid and flood relief grants were similarly paid in error and written off. The department estimated that as of 2025, around $249 million worth of grants required further eligibility review, although it believed that most of these were likely to be valid payments.

VAGO cautioned that the small sample size and potential bias in the audit limited the conclusiveness of these findings, and noted the department’s assessment that the administrative costs of conducting comprehensive audits on all payments may outweigh the financial recoveries.

The report also criticized the lack of transparent and consolidated financial reporting. While the Department of Treasury and Finance compiled Covid spending data from the 2019–20 fiscal year to 2021–22, this reporting was discontinued thereafter. VAGO estimated that an additional $3 billion was spent by the government by the end of the 2025–26 fiscal year, bringing total pandemic expenditure to $39.8 billion.

The findings sparked a response from Victorian Opposition Leader Jess Wilson, who accused the Labor government of mismanaging taxpayer funds during the pandemic. Wilson highlighted the absence of clear and ongoing reporting on Covid-related spending, describing it as a breach of public trust, and pledged that a Coalition government would introduce a public expenditure tracker to improve transparency.

The report referenced the tenure of Daniel Andrews, who served as premier through the pandemic before resigning from politics in 2023. He was succeeded by Jacinta Allan, who resigned earlier this year ahead of Bern Carroll’s current leadership.

The VAGO report underscores the ongoing challenges faced by Victoria in managing the financial fallout of its pandemic response, revealing gaps in oversight and accountability that may continue to affect state finances in coming years.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.