Victoria’s integrity agencies renew call for transparent, independent funding

Victoria’s three core integrity agencies – the Victorian Ombudsman (VO), Independent Broad-based Anti-corruption Commission (IBAC) and Victorian Auditor-General’s Office (VAGO) – have called for urgent reform to how the integrity sector is funded, to increase transparency and enable them to effectively hold the Victorian Government to account.

A new joint paper published by the agencies today recommends practical reforms to strengthen transparency and independence. These include providing clear reasons for funding decisions, enabling parliamentary committees to meaningfully scrutinise budget bids, and introducing public protocols that set out the principles and process for determining funding.

Under the current model, integrity agencies’ budgets are decided by the government they oversee, without consultation with the parliamentary committees that oversight the agencies nor the requirement for government to explain its funding decisions to the agencies, Parliament or the public. This lack of transparency risks undermining public trust.

“The current funding processes are opaque and shrouded in secrecy,” said Victorian Ombudsman Marlo Baragwanath. “The reforms we propose will help Victoria’s core integrity agencies perform the important oversight role the community expects of us.”

The agencies’ 2022 paper recommended establishing a structurally independent funding model such as a commission or tribunal. That recommendation remains undelivered and increasingly relevant.

“Even the perception of corruption can undermine public trust – so it is essential that budget processes are transparent and independent,” said IBAC Commissioner Victoria Elliott. “Reforming the current budget process will help ensure Victorians can trust that integrity agencies are frank and fearless in their oversight.”

The paper outlines 12 practical reforms across three key areas:

• Improving information access: by providing written explanations of funding outcomes, improving visibility of the advice that informs decisions, and conducting post budget briefings to explain outcomes.
• Strengthening parliamentary oversight: by allowing integrity agencies to brief oversight committees on their budget needs before decisions are made, giving committees access to the rationale behind decisions, and ensuring the process is subject to proper scrutiny.
• Introducing clear administrative safeguards: including exempting core integrity agencies from efficiency dividends, providing more flexibility in how unspent funds are used, and establishing a dedicated contingency reserve, a public protocol setting out funding principles and timelines, and specialised liaison support within Treasury.

Together, these measures aim to make the budget process more transparent, predictable and fair, while preserving Cabinet’s role as the final decision maker.

“The practical reforms we are recommending would meaningfully improve transparency and act as an important step towards the long-term budget independence needed to safeguard institutional integrity and maintain public trust,” said Victorian Auditor-General Andrew Greaves.

Victoria is not alone in confronting these challenges. In New South Wales, recent reforms have introduced a ‘charter of Independence’ for integrity agencies; providing written reasons for decisions, allowing visibility of Treasury advice; excluding agencies from efficiency dividends; and establishing a specialist Treasury unit.

The agencies will continue to work with government to progress these important reforms.

Read the full paper, including the 12 reform proposals, here: Advancing budget transparency for Victoria’s core integrity agencies, February 2026.

Read the case study: Funding fairness in Victoria

For interview requests or further information:

Peter Davies – Manager, Strategic Communications
Phone 0409 936 235
Email vomedia@ombudsman.vic.gov.au