The national audit office is mulling investigations into the Consumer Data Right, the digital identity scheme and the federal government’s oversight of new technologies, but an inquiry into the controversial PsiQuantum investment has fallen off its list.
The Australian National Audit Office (ANAO) tabled its annual work program for 2025-26, with a list of potential investigations for the coming financial year.
These include audits of the design and implementation of the long-running Consumer Data Right (CDR) scheme, the digital identity regime and the frameworks guiding the use of emerging technologies in the public service.
But a previously planned audit of the use of specialist investment vehicles, flagged last year in the wake of the controversial funding of PsiQuantum, has not been included in the potential audits for 2025-26.
There is a potential inquiry into the management of investments by the Australian governments for selected entities, but this does not specifically mention the type of investment vehicles used in the PsiQuantum deal.
An audit of the use of specialist investment vehicles was added to the ANAO’s 2024-25 work plan last year after then-shadow science minister Paul Fletcher wrote to the auditor-general raising “series questions” that were unanswered about the investment in PsiQuantum.
The federal government has pledged $470 million in equity and loans to PsiQuantum through Export Finance Australia, one of eight special investment vehicles used by the government to invest public funds.
In response, the auditor-general added a potential audit into the use of vehicles such as these by the federal government.
But this audit did not go ahead in the last financial year, and has not been listed as a potential audit in 2025-26.
A potential audit listed in the current financial year may cover this though, with the ANAO considering looking into the “management of investments by the Australian governments for selected entities”.
“The Australian government undertakes investments through a range of models, including private sector investments, to achieve policy and investment outcomes,” the ANAO work program said.
“This audit would assess the effectiveness of the management of a selection of investments to ensure value for money, transparency and return on investment is achieved.”
The design and implementation of the Consumer Data Right by the ACCC, Treasury, Office of the Australian Information Commissioner and the Attorney General’s Department is a potential target for the audit office this year.
The Consumer Data Right, which aims to give consumers control over the data that is collected on them, was launched in the banking sector in 2020. In 2023 the federal government paused the expansion of the scheme to the telecommunications, superannuation and insurance sectors, and last year flagged a “reset”.
If the audit goes ahead, the ANAO will assess the effectiveness of the design and implementation of the CDR.
The Digital Identity scheme may also be reviewed, which would cover the Attorney General’s Department, the Australian Taxation Office, the Department of Finance and Services Australia.
This audit would look at the progress of selected components of this program, including the effectiveness of the implementation, design and functionality, roles and responsibilities and allocation and expenditure of funding, including contract management.
Early last year, legislation was passed expanding the digital identity scheme to the whole economy, with the private sector to be invited to participate within two years.
The work program also lists an investigation into the frameworks developed by the Digital Transformation Agency for the use of emerging technologies in the public sector.
These frameworks include the Data and Digital Government Strategy and Implementation Plan, which is the first combined data and digital strategy of the government and acts as a blueprint through to 2030.
The Industry Department’s oversight of the use of new technologies, including policies, programs and stewardship to support the safe and responsible use, could also be scrutinised as part of an audit that would focus on artificial intelligence.
Other potential audits include into the government’s response to scams, Services Australia’s management of automated decision-making, the management of cybersecurity and data governance at the tax office.
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