The Claim
“Paid $1.5 billion for the East West Link far earlier than necessary, so that it would fall into Labor's financial year, to make them look worse.”
Original Sources Provided
✅ FACTUAL VERIFICATION
The core facts of this claim are verified by the Australian National Audit Office (ANAO) and multiple authoritative sources. The Abbott government did indeed pay $1.5 billion to Victoria for the East West Link project on June 30, 2014—the last day of the 2013-14 financial year—despite clear departmental advice that this timing was unnecessary [1].
According to the ANAO audit report published in December 2015, the Commonwealth gave the former Napthine government $1.5 billion for the toll road's eastern section in June 2014, with Tony Abbott personally approving the payment in May 2014 [1]. The audit explicitly states: "The decision to provide $1.5 billion in advance provided budget presentation benefits to the government by bringing forward the payments which resulted in a larger budget deficit for 2013-14" [1].
The audit also found that the decision cost the Commonwealth $49 million in lost interest payments because the money sat in Victoria's account earning interest for the state rather than the federal government [1]. Departmental advice had recommended paying the money in instalments aligned with project milestones rather than a lump sum, but this was ignored [1].
Furthermore, the project had not been properly assessed by Infrastructure Australia before the payment was made. The audit found that "Neither stage of the East West Link project had proceeded fully through the processes that have been established to assess the merits of nationally significant infrastructure investments" [1]. The full business case was not provided to Infrastructure Australia until July 2014—after the $1.5 billion had already been paid [2].
Missing Context
The claim, while factually accurate, omits several important contextual elements:
The project had extremely poor cost-benefit metrics. Infrastructure Australia assessed the East West Link with a benefit-cost ratio of just 0.45 using their preferred methodology—meaning it returned only 45 cents in benefits for every dollar spent [3]. This suggests the payment was problematic not just for its timing but for its fundamental economic merit.
The $1.5 billion was part of a broader pattern of budget timing maneuvers. The Abbott government also directed $8.8 billion to the Reserve Bank within weeks of taking office, which similarly inflated the 2013-14 deficit figure [4]. The combined effect of these early payments contributed significantly to the deficit blowing out from a forecast $18 billion to $48.5 billion [4].
The early payment was made before contracts were signed. The East West Link contract was not actually signed until September 2014—three months after the $1.5 billion payment—indicating the money was indeed transferred well ahead of any project expenditure needs [2].
The Victorian Auditor-General also criticized both governments. A separate Victorian Auditor-General's report found that while the former Napthine government signed contracts prematurely for political reasons (before the 2014 state election), the Andrews Labor government also accepted limited advice when it subsequently tore up those contracts [1]. This suggests accountability for the waste was bipartisan.
Source Credibility Assessment
The original source provided (The Age article) is a mainstream Australian newspaper with no significant partisan alignment. The claims made in the article are substantiated by the ANAO audit report, which is an independent, authoritative government audit body.
The ANAO report (Audit Report No. 20 2015-16: Approval and Administration of Commonwealth Funding for the East West Link Project) provides primary source verification from an independent auditor with statutory independence from the government. This is the gold standard for verifying claims about government financial decisions.
Labor Comparison
Did Labor do something similar?
Search conducted: "Labor government advance payment timing budget political advantage" and "Labor government infrastructure payment timing"
Finding: While specific instances of Labor governments making advance payments for the explicit purpose of distorting budget figures were not identified in available sources, both major parties have historically engaged in budget timing maneuvers and accounting treatments that present fiscal outcomes in favorable ways.
The broader pattern of manipulating budget presentation is not unique to the Coalition. For instance, the Reserve Bank dividend manipulation—where the Abbott government booked half of the Reserve Bank's 2013-14 dividend ($1.235 billion) into the 2014-15 budget and held half over to boost the 2015-16 budget—is a technique available to and used by governments of all stripes [4].
Additionally, Infrastructure Australia assessments have found problematic business cases under both parties. For example, various major projects have proceeded with poor cost-benefit ratios under both Coalition and Labor state and federal governments [3].
However, the specific combination of: (a) paying $1.5 billion before financial assessment was complete, (b) ignoring departmental advice about proper timing, and (c) the explicit budget timing benefit acknowledged by the ANAO, does appear to represent an unusually egregious case of budget manipulation.
Balanced Perspective
While the ANAO audit substantiates the claim that the payment timing was politically motivated to inflate Labor's final deficit, there are contextual factors to consider:
Legitimate political considerations: The Abbott government had campaigned strongly on the East West Link during the 2013 federal election, with Tony Abbott describing the subsequent Victorian state election as "a referendum on the East West Link" [4]. The funding commitment fulfilled an election promise, albeit through rushed execution.
Budget accounting context: While the early payment was clearly designed to make the 2013-14 deficit appear larger, it's worth noting that the 2013-14 budget outcome was already deteriorating significantly due to commodity price collapses (iron ore fell from $US124 to $US93) [4]. The payment exacerbated an already worsening position rather than creating a phantom deficit.
Victoria's role: The Victorian Auditor-General found that the Napthine (Coalition) state government also acted politically by signing contracts before the 2014 state election to lock in the project [1]. This was not solely a federal maneuver—state-level political considerations also drove the rushed timeline.
The project was eventually cancelled: The Andrews Labor government abandoned the East West Link after winning the November 2014 Victorian election, meaning much of the $1.5 billion ultimately sat unused in state accounts [1]. However, the Turnbull government (Coalition) subsequently allowed Victoria to keep the money for other infrastructure projects rather than demanding its return as Abbott had insisted [1].
Comparative context: While the specific maneuver was unusual in its scale and transparency (being explicitly criticized by the ANAO), governments of both parties have historically used timing of payments, reclassifications, and accounting treatments to manage budget presentation. The ANAO's explicit finding that the decision was taken for "budget presentation benefits" is, however, an unusually direct confirmation of political motivation.
TRUE
8.0
out of 10
The claim is factually accurate and supported by the independent Australian National Audit Office. The ANAO explicitly found that the Abbott government paid $1.5 billion to Victoria on June 30, 2014, despite departmental advice that this timing was unnecessary, and that this decision "provided budget presentation benefits to the government by bringing forward the payments which resulted in a larger budget deficit for 2013-14." The audit confirmed Tony Abbott personally approved the payment after receiving clear advice that the project had not been properly assessed and that instalment payments aligned with milestones would be more appropriate.
Final Score
8.0
OUT OF 10
TRUE
The claim is factually accurate and supported by the independent Australian National Audit Office. The ANAO explicitly found that the Abbott government paid $1.5 billion to Victoria on June 30, 2014, despite departmental advice that this timing was unnecessary, and that this decision "provided budget presentation benefits to the government by bringing forward the payments which resulted in a larger budget deficit for 2013-14." The audit confirmed Tony Abbott personally approved the payment after receiving clear advice that the project had not been properly assessed and that instalment payments aligned with milestones would be more appropriate.
📚 SOURCES & CITATIONS (5)
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1
East West Link: Tony Abbott 'ignored advice' over Victorian road project, auditor-general says
Former prime minister Tony Abbott ignored advice not to hand Victoria $1.5 billion for the ill-fated East West Link project, an audit finds.
Abc Net -
2
Tony Abbott slammed for political timing of East West Link road cash
Tony Abbott rushed to promise $3 billion of East West Link cash despite "clear advice" from the public service that the project hadn't been justified and wasn't ready.
The Age -
3
Analysis: Why the East West Link proved such a hard sell
The former government clearly went to extraordinary lengths to make the East West Link appear like it stacked up.
The Sydney Morning Herald -
4
How the East West Link cooked Abbott's budget numbers
Tony Abbott thinks we're mugs. Deflecting attention from a budget that left Australia's second biggest state with only a fraction of Austr...
Petermartin Com -
5
Audit Report No. 20 2015-16: Approval and Administration of Commonwealth Funding for the East West Link Project
Anao Gov
Rating Scale Methodology
1-3: FALSE
Factually incorrect or malicious fabrication.
4-6: PARTIAL
Some truth but context is missing or skewed.
7-9: MOSTLY TRUE
Minor technicalities or phrasing issues.
10: ACCURATE
Perfectly verified and contextually fair.
Methodology: Ratings are determined through cross-referencing official government records, independent fact-checking organizations, and primary source documents.