Audit office calls for clearer reporting from industry development program
The Queensland Audit Office has revealed its findings after examining the effectiveness of a key State Development, Infrastructure and Planning Department’s program.
An audit of the State Development, Infrastructure and Planning Department’s Industry Partnership Program (IPP) that has run from June 2021 to June 2025 and included $330 million of grants has led to eight new recommendations for change.
The Queensland Audit Office report stated the IPP was effectively administered and supported key industries, but its overall effectiveness was not clearly demonstrated.
Overall, QAO made eight recommendations to the department, asking for clearer grant processes and risk assessments, and the improvement of result measuring, goal setting, success indicators and economic analysis.
All recommendations were agreed to by the Department of State Development, Infrastructure and Planning.
The QAO report the program was well designed to support government strategies, clearly outlined predicted outcomes and attracted strong industry interest.
But, the audit found a few high-value projects did not follow standard assessment and endorsement processes, reducing available funds for competitive applicants.
There was also some confusion when the department updated its assessment criteria in 2023 without providing proper guidance to assessors. The department also failed to adapt detailed compliance checks according to different project risks, causing unnecessary burdens on grantees.
QAO found the department did not apply customised risk assessments, creating potential for some applicants to be unnecessarily rejected.
It also found:
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- The department did not set program-level targets for job creation, private investment, which negatively impacted progress measurement.
- The program relied on self-reported information in place of evaluation frameworks, which negatively impacted the assessment of industry-wide benefits.
- The program did not conduct economic modelling to assess the overall impact of the program.
Funding agreements with confidentiality clauses encouraged participation but reduced transparency and limited reporting.
IPP’s goal was to create jobs, strengthen supply chains and attract private investment with a focus on medical technology, critical minerals and battery technology industries.
The department approved $204.5 million for 30 projects, with some funds remaining uncommitted.
