Agriculture minister Murray Watt slams former government for department's woes

The agency has implemented cost-cutting measures including restrictions on all non-essential travel and training, putting on hold non-critical projects and reducing contractors as its funds run low.

Mr Watt said the agency was having to "live within its means" because of the former government's financial management.

"Under a series of National Party ministers, consultancy and contractor fees blew out by hundreds of millions of dollars, and they ignored report after report that called for biosecurity fees and charges to be reviewed to meet the department's budgetary challenges," Mr Watt said.

"The result of this inaction is that the Department of Agriculture is now having to tighten its belt."

But former agriculture minister David Littleproud said he was surprised by how the situation had deteriorated.

"When we were in government, we made sure they had the financial means to undertake all their primary functions, so it's important that they have the resources to be able to do that," he said.

Mr Littleproud has called for the Australian National Audit Office to scrutinise the situation.

"The department also has a responsibility to make sure that they're managing Australian taxpayers money effectively," he said.

"That's where I think the audit office should be involved in making sure, and understanding where the shortfalls emerge from."

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The incoming government brief for the department, released through a freedom of information request in August last year, showed that funding is supplied through the federal budget and the department's own cost-recovery activities.

For the 2022-23 financial year, the department said it would receive $1.16 billion from the federal budget, and estimated its own revenue would amount to $509.3 million.

The department expected an operating loss of $31.2 million for this financial year, which it said had been approved by the finance minister.

Mr Watt said he takes the department's financial issues very seriously.

"The department is now taking responsible action to ensure we can continue to protect our biosecurity and maintain our status as a trading nation, while living within our means," he said.