Anthony Albanese has admitted a $6 million grant to a golf club in his electorate was not designed to fund sewage works, after department officials contradicted his earlier defence of the funding.
The grant to Marrickville Golf Club in the prime minister's seat of Grayndler became the centre of debate over the federal government's invitation-only Major and Local Community Infrastructure Program. Albanese had argued the money was for urgent repairs, including long-standing sewerage concerns that threatened to contaminate the adjacent Cooks River.
On Monday evening, department officials told Senate estimates that sewerage works were "not in the scope of this grant". Assistant secretary for community infrastructure and major projects, Jacinta McDonald, said the refurbishment instead focused on a stormwater harvesting system, an electrical capacity upgrade and the creation of a botanical garden.
Opposition manager of business Dan Tehan seized on the revelations in question time on Tuesday, demanding the prime minister admit he was wrong. Albanese responded that the NSW government had stepped in to fund the sewerage-related upgrades in September 2025.
"I have said that was not correct," Albanese said. "It was not correct. The state government has moved in and are funding the [sewage] project."
The prime minister added: "After we made the commitment to the club, which included fixing this issue, which has been an issue since 1947, the state government has stepped in. That is a good thing."
The program has faced growing scrutiny. An analysis by the Centre for Public Integrity found nearly three-quarters of grants from the $560.9 million program went to notionally Labor-held or competitive seats. The Marrickville Golf Club had already received five federal grants totalling almost $58,000 before the $6 million commitment during the 2025 election campaign. One leading constitutional expert described the program as "grey corruption". Last week, the acting head of the National Anti-Corruption Commission said her interest had been "piqued" by aspects of the program, including changes to its structure after it was found to be unconstitutional.
A separate dispute emerged on Tuesday over the urban Precincts and Partnerships Program. Liberal Senator James McGrath said evidence from the department showed 23 of 25 grants went to Labor-held seats and two to independents, with none to the Coalition.
"More than a dozen Coalition electorates were eligible for funding under this program and out of 25, zero received funding," McGrath said. "Labor has been caught out again funnelling money into their seats, in a clear case of pork-barrelling."