An alarming internal survey has revealed that nearly one in five employees at the small federal agency responsible for managing Australia's government debt say they have witnessed corrupt conduct.
Survey Reveals Disturbing Trend
The findings from the Australian Office of Financial Management's 2025 staff census were presented during a Senate estimates hearing in December. Of the 45 staff who participated, 18 per cent reported observing an official engage in corrupt behaviour. A further 9 per cent said they were unsure or preferred not to answer.
This marks a significant and concerning increase, with reported instances of corrupt conduct within the AOFM reportedly doubling since the 2024 survey. The figure sits well above the averages for other extra-small agencies and the Australian Public Service overall.
Leadership Perplexed by Results
Chief Executive Anna Hughes expressed bewilderment at the census outcome, telling the committee she was actively trying to understand the data. "We're still trying to work out why that score looked the way it did," Ms Hughes said.
She noted the agency, which sits within the Treasury portfolio, had introduced anonymous reporting channels and provided public interest disclosure training to additional officers. "There's constant communication around who you can actually talk to and nobody's come forward with anything," she stated.
When questioned on why the agency's official action plan responding to the census did not mention corruption as an area for improvement, Ms Hughes said the focus was on enhancing communication channels.
Staff Turnover and Leadership Changes
The agency's recent annual report separately disclosed an unexpected spike in staff departures. Employee expenses were $800,000 higher than forecast for the 2024-25 financial year, attributed to higher-than-anticipated termination and redundancy costs.
The AOFM did not specify how many staff had been terminated, but a spokesperson said internal changes were fostering a "more agile, contemporary organisation."
Ms Hughes, who earns an annual salary of approximately $400,000, detailed a recent leadership restructure—the first major change since the early 2000s. Previously the sole Senior Executive Service (SES) employee, she is now supported by two additional SES appointees: a deputy CEO and a chief operating officer.
Since the May census, the agency's headcount has grown from 48 to 53 employees.
Transparency Concerns and Internal Measures
How staff perceive the agency's leadership remains unclear, as all census responses related to SES managers were redacted from the publicly released report. Ms Hughes said this was done on advice from the Australian Public Service Commission for privacy reasons, as the results pertained only to her.
Liberal Senator Dave Sharma challenged this lack of transparency, arguing that in an organisation with only one senior leader, perceptions of that leadership should be public. Senator Sharma requested Ms Hughes to revisit the issue with the APSC and respond formally.
Despite the census results, the agency's annual report stated it had "minimal appetite for fraud and corruption" and had taken comprehensive preventative steps. These included adhering to a fraud control plan and providing mandatory annual training to all staff. The report identified no instances of fraud or suspected fraud in 2024-25.
An AOFM spokesperson reaffirmed the agency takes integrity seriously, encouraging employees to report any concerns through official disclosure channels.
