'Shady' Labor election grants under inquiry spotlight

A parliamentary probe into Labor's $560 million funding pot will examine the allocation of grants to marginal seats and Labor-held seats.

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A parliamentary probe into Labor's $560 million funding pot will examine the allocation of grants to marginal seats and Labor-held seats. The Major and Local Community Infrastructure Program, which funded a series of Labor's 2025 election promises around the country, will be under the microscope.

The Centre for Public Integrity sounded the alarm on the non-competitive grant round in September in a report titled "public money, political advantage". Analysis shows that funding was tilted towards marginal seats and Labor-held seats.

The government defends the scheme as an above-board mechanism to deliver on its promises, but good governance groups believe it is unmeritorious spending. Constitutional lawyer Anne Twomey has called the spending "grey corruption".

Greens deputy leader Steph Hodgins-May, who launched the probe, said the central question was who made the calls to allow projects to access the funds. In its submission to the committee, the infrastructure department said it had "no role identifying, selecting or recommending" projects.

Senator Hodgins-May said, "If the department had no role in identifying or selecting applicants, or advising those who did, we're left with the obvious question: who made these decisions?" The evidence is pointing towards an extraordinary level of ministerial and party discretion to hand out millions of dollars through a closed-off and shady grants process.

While Infrastructure Minister Catherine King and other Labor figures will not appear before the committee, Inner West Council Mayor Darcy Byrne will do so on Wednesday.