The aims of this white paper are to independently evaluate the openness and competitiveness of the Australian Commonwealth grant program, and to provide a descriptive analysis of the characteristics of businesses that use these grants. Through a detailed exploration and analysis of the grant funding process, and using data made available by the Australian Government via GrantConnect, the authors put a spotlight on how taxpayer funding is being utilised by the Commonwealth government.

In a democracy such as Australia’s, where the government draws its legitimacy from citizens through the election process, taxpayers should have a vital interest in how government allocates funds to different grant programs — not least because the allocation of grant funds can affect the level of funding available for other types of government services. In addition, we are experiencing a very perilous time where people's belief in government is being tested sorely and the level of disengagement and cynicism is perhaps unique in its scale.

Hence, one of the primary underlying objectives of the paper is to address this decreasing trust in government via the four recommendations outlined in the executive summary and to ensure that government cares deeply about taxpayers' money. So, the independent scrutiny that is being brought about via this paper report should not only assist taxpayers in determining whether their taxes are being spent appropriately but should also enhance belief and trust in government and in our democratic institutions.

Recommendations

1. Enhance transparency by publicly identifying all applicants for competitive grants, both successful and unsuccessful.
2. Full and prompt disclosure should be required when government ministers overrule public service or expert committee recommendations on awarding of grants.
3. Toughen disclosure requirements for ad-hoc grants awarded by government ministers.
4. Require government agencies to provide more information about grants and their purposes.