Taxpayers won't receive a cent after group collapses following $130,000 grant

Taxpayers won't receive a cent back from a $130,000 state government grant that the Charlestown Caring Group received before its collapse in late 2024.

The former aged care and disability support provider was approved to receive the money on September 28, 2023, under the Local Small Commitments Allocation (LSCA) program.

The grant was assessed by an independent panel for merit, value for money and deliverability.

The funds were used to purchase a 22-seat bus that was used to transport the group's 200-plus clients to various services.

However, the group ceased operation on December 31, 2024, resulting in all of its assets being liquidated.

Charlestown MP Jodie Harrison was photographed with members of the group and their new bus on October 4, 2024.

"They [Charlestown Caring Group] were delighted to show me their incredible new bus, purchased with funds from the Minns Labor Government Local Small Commitment Allocation Program," she wrote in a social media post.

Special Minister of State John Graham said there were no indications the Charlestown Caring Group was going into administration at the time of the grant decision in 2023.

Despite being listed as a creditor in February 2025, the government has received nothing back on behalf of taxpayers.

"The final report to creditors from the liquidator of Charlestown Caring Group has been received by the grant program office and indicated that there are no funds available to enable a distribution to the company's creditors," the government's response to a Coalition question tabled during a recent budget estimates hearing said.

"Grants were managed in accordance with the grants administration guide, which is publicly available."

The fate of the bus remains unknown.

Liquidator Darren Vardy told the Newcastle Herald in September 2025 that section 486 of the Corporations Act prevented him from commenting about the organisation's affairs and records.

"I am unable to provide any such information or records pertaining to the subject matter without a court order," he said.

Attempts to contact the Charlestown Caring Group have been unsuccessful.

Ms Harrison said the closure came as a surprise and was disappointing.

"Charlestown Caring Group was a well-regarded local provider of NDIS and aged care services with more than 200 clients," she said.

"Many of these clients and their carers relied on Charlestown Caring Group for respite, social interaction and outings. The provision of the 22-seater bus would have enabled more clients to be included in activities organised by the group's staff."

Shadow treasurer Scott Farlow said a multi-party parliamentary committee found that the LSCA program was "an attempt to influence voters for electoral gain rather than legitimate public purpose".

"Unfortunately the people of Charlestown will be missing out on this key grant with their local benefit going to receivers rather than the community," he said.

"The Coalition have been pursuing this issue for years to hold the government to account and ensure that the people of Charlestown and across the Hunter get their fair share, rather than just the dregs of a program that was labelled by the committee a "publicly funded Labor Party election slush fund". "

Greens MP Abigail Boyd said the government's selection and screen process was deeply flawed.

'They're going out and handpicking the recipients and then retrospectively trying to fit them into grants guidelines. That's opposed to how we would expect public money to be spent through open, transparent processes, where hopefully you would know if an institution is financially stable and isn't going to close down soon after giving it money," she said.

Ms Boyd said successive governments had systematically stripped money away from community services and replaced it with selective grant programs that were strategically designed to win votes.

"When it comes to election time they go around trying to win votes by promising to put small injections into these services," she said.

"This is not how governments are supposed to spend their money, and it's not how democracy is supposed to function."