Albanese admits ‘sewage’ claim for $6 million grant was wrong

Anthony Albanese has admitted a $6 million grant for a golf club in his electorate was not designed to fund sewerage works, after bureaucrats contradicted the prime minister’s previous claims by revealing the money was earmarked for other upgrades.

The prime minister came under fire last month after it was revealed Labor-held electorates received the vast majority of grants in an invitation-only program, described by one leading constitutional expert as “grey corruption”.

At the time, Albanese defended the decision, arguing the money was for urgent repairs, including longstanding sewage concerns that threatened to contaminate the adjacent Cooks River. The prime minister was repeatedly attacked over the grant given he held an honorary membership to the inner-Sydney club and owned property nearby.

But 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 the installation of a stormwater harvesting system, electrical capacity upgrade and the creation of a botanical garden.

The opposition seized on the revelations in question time on Tuesday, with manager of opposition business Dan Tehan demanding the prime minister admit he was wrong.

During question time, Albanese said the NSW government stepped in to fund the sewerage-related upgrades in September 2025, five months after the federal government’s commitment.

“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 also said: “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.”

Nearly three-quarters of grants awarded from the Albanese government’s $560.9 million Major and Local Community Infrastructure Program were allocated to notionally Labor-held or competitive seats, according to an analysis by the Centre for Public Integrity.

The Marrickville Golf Club, in Albanese’s electorate of Grayndler, became the centre of the grants program debate, as it had already received five federal grants totalling almost $58,000 before Albanese promised it an extra $6 million during the 2025 election campaign.

Last week, the acting head of the National Anti-Corruption Commission said her interest had been “piqued” by a number of aspects of the program, including early changes to its structure after it was found to be unconstitutional.

Another government scheme came into the spotlight on Monday, when Liberal senator James McGrath separately accused Labor of pork-barrelling through its urban development grants program, given the Coalition received none of the available funding.

The opposition urban infrastructure spokesman said evidence from the department revealed during Senate estimates on Monday night showed 23 out of 25 grants went to Labor-held seats, with independents receiving the remaining two.

The urban Precincts and Partnerships Program invests in metropolitan areas, in which Labor holds the majority of seats.

“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.”

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