Deloitte delivered a A$440,000 report to Australia’s Department of Employment and Workplace Relations on welfare compliance that contained a fabricated quote attributed to a federal court judgment and citations to academic papers that do not exist. A Sydney University law researcher publicly flagged the fabrications after reviewing the report. Deloitte acknowledged limited use of generative AI in preparing the document, issued a corrected version, and refunded the department more than A$97,000 (about US$63,000) of the contract value.