DESPITE breaking a commitment to foreign aid spending, Australia has been praised by its developed-country peers in a new review of overseas assistance.
The OECD's Development Assistance Committee engaged assessors from Canada and the EU to compile a report into the nation's aid program, which totalled $US5.44 billion in 2012, making it the world's eighth-largest financial contributor.
The 122-page review found Australia had made "great efforts to promote development" on a global scale and had the potential to grow its spending on aid.
However, authors made reference to Australia's division of funds, highlighting the Labor government's decision in December to channel A$375 million in aid monies to pay for the domestic upkeep of asylum seekers.
"The predictability of Australia's aid risks being undermined when newly incurred ODA (official development assistance) eligible costs are met within allocated budgetary envelopes rather than with new resources," says the review.
Earlier in 2012 the government delayed by 12 months its plans to boost aid spending to 0.5 per cent of gross national income - around $8 billion - by 2015/16 as it worked to bring the budget back into surplus.
The review welcomed Australia's ongoing commitment, albeit delayed, to reach the benchmark.
"Australia is in a very strong position to deliver a growing aid budget effectively and efficiently," it read.
"In line with its commitment to punch at or above its weight in international development, Australia should achieve its stated aid goal of 0.5 per cent by 2016/17."
AusAID Director General Peter Baxter welcomed the assessment, the first since 2008.
"This assessment of Australia's approach to aid positions us as an expert on aid delivery amongst our peers," Mr Baxter said in a statement.
"The review praises the efficiency, transparency and effectiveness of the program, making particular reference to Australia's sound strategic policies, delivery of strong results and dedicated commitment to transparency."
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