The Australian Financial Review reports that Deloitte Australia will offer the Australian government a partial refund for a report that was littered with AI-hallucinated quotes and references to nonexistent research.

Deloitte's "Targeted Compliance Framework Assurance Review" was finalized in July and published by Australia's Department of Employment and Workplace Relations (DEWR) in August (Internet Archive version of the original). The report, which cost Australian taxpayers nearly $440,000 AUD (about $290,000 USD), focuses on the technical framework the government uses to automate penalties under the country's welfare system.

Shortly after the report was published, though, Sydney University Deputy Director of Health Law Chris Rudge noticed citations to multiple papers and publications that did not exist. That included multiple references to nonexistent reports by Lisa Burton Crawford, a real professor at the University of Sydney law school.