The Dark Side of Political Donations in Australia: A Deep Dive into Justice Institutions

Understanding the Impact of Political Donations

Transcript of TVC broadcast highlighting Human Rights.

SUMMARY ASSIGNMENT ONE

Broadcast on the 23rd of May 2016, the Four Corners documentary ‘Money and Influence’ summed up political donations in Australia with this striking statement made by Constitutional Lawyer George Williams: “We have a system where giving money can influence outcomes - and that's a soft form of corruption.”

Institutionalised corruption is at the heart of Australia’s democracy, unlike any other country. Four Corners analysed the integrity investigation conducted by the New South Wales (NSW) Independent Commission Against Corruption (ICAC) into donors under the political fund in NSW. It explored interest groups like the ‘Free Enterprise Foundation’ and how donations influence election outcomes. Influence peddling is rampant, manifesting through substantial financial contributions. It’s an anything-goes system (McDermott & Ferguson 2016) that allows secretive donations to wash through the system, avoiding legislation that loosely monitors citizen group participation in elections.

The Evolution of Political Donations

Financial donations are a crucial aspect of citizen participation in politics. Citizen groups fund political parties or individuals running for government (Jackson, Stewart, & Economou, Nicholas 2022). But let’s be real: this formal participation has morphed into a soft form of corruption, as expressed and explored in the Four Corners documentary.

Political donations have become a breeding ground for soft corruption, primarily known by major party players and corporations. For most of Australia’s political landscape, this unethical handshake—financial benefit—has been ignored, even by ministers themselves. The documentary episode focused predominantly on the right-wing Liberal Party of Australia. However, the evidence regarding illegal and unethical practices within political donations is well documented across all parties.

The Unveiling of Corruption

Liberal, Labor, and the Greens are all exposed regarding secret gift donations, late declarations, and corporate donors' “influence peddling.” They wash donations through foundations, disguising the money. For instance, developers make prohibited donations via cover donors, hiding their financial contributions.

Prohibited donations are secretly channelled without full disclosure through below-the-radar organisations. Interest groups like the Free Enterprise Foundation are just the tip of the iceberg. The idea of lowering the required reporting cap for donations and implementing further regulations is discussed. The issue of late declarations for donations is formally acknowledged by the ICAC investigation. This report reviews the issues raised and the reforms that gained legislative amendment in 2024 before the 2025 election—nearly a decade after this documentary aired.

The Cost of Access

As investigated by Four Corners reporter Quentin McDermott, access to political masters can buy policy, industry standards, and even legislation. “There are many companies, mainly public companies, who will have what you could best describe as ‘two bob each way,’” said Michael Yabsley (Honorary Federal Treasurer, Liberal Party, 2008-10). This system allows contributions to be evenly gifted to both parties, seeking to curry favour with our political masters. The documentary exposes this troubling reality.

This report focuses on the issues surrounding donations in the election process and the application of legislative amendments aimed at addressing some of the corruption. It seeks to provide transparency to a very ambiguous process that runs counter to the most basic democratic ideals.

My Journey in Political Studies

Full-time studies this term (Session) have been an eye-opener. My first Briefing Note actually made it to political ministers! I’m enjoying my studies and can’t wait to share news about completing Public Sector Research and Policy, Governance, and Justice!

Not everyone appreciates my formality in formatting, but my project is undeniably strong and passionate. I’m loving these studies!

In this whirlwind of political donations and institutional corruption, I find myself more driven than ever. The fight for transparency and justice is not just a topic for me; it’s a mission. How can we stand by and let this continue? We must demand change. We must be the voice for the voiceless.

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