The ALP has rigged Victoria’s electoral fundraising laws in favour of the political duopoly, allowing it and the Coalition to be funnelled limitless “donations” via three obscure shell companies.
Investigations reveal that under the scheme — which experts say hogties independents from entering parliament — the Liberal Party runs its funds through a company registered to a luxury house in Melbourne’s Brighton.
The limitless “donations” to the National Party flow through a shell company called “Pilliwinks Pty Ltd”.
When The Klaxon visited its official “business address” last month — an office tower on Collins Street in Melbourne’s CBD — the front reception said it had “never heard of it”.
Under the remarkable scheme, three companies — and only three companies — in Victoria are currently allowed to receive limitless political donations.
They are Pilliwinks Pty Ltd; an entity called “Cormack Foundation Pty Ltd”, controlled by the Liberal Party; and “Labour Services & Holdings Pty Ltd”, an entity controlled by the “ATF Labour Services & Holdings Trust” — which is controlled by the ALP.
The change were pushed through almost entirely under the public radar in 2018, when the Victorian ALP Government undertook “electoral reform”.
Under the stated aim of getting big money out of politics and to “ensure a level playing field”, it introduced a donations cap, restricting payments from any individual or entity to $4,850.
In fact, the field was rigged. A massive loophole was created, allowing limitless funds to flow the ALP, Liberal and National parties through the three shell companies — it called “nominated entities”.
The state of Victoria’s entire “designated entities register” is comprised of just three entities: Pilliwinks Pty Ltd, Cormack Foundation Pty Ltd and Labour Services & Holdings Pty Ltd.
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The “principal place of business” of the Liberal Party’s “Cormack Foundation Pty Ltd”. Photo: Anthony Klan/The Klaxon
Under the “electoral reform”, the Victorian ALP set the laws so that “gifts” between a “nominated entity” and “its registered political party” are “not considered political donations”.
Before the 2022 Victorian election — despite the $4,850 cap — millions of dollars flowed from the three shell companies to the Victorian branches of the ALP, Liberal and National parties.
Support for the two major parties has been in long-term decline and is currently at its lowest point on record, with one-third of Australians voting for independent or minor parties at the last federal election.
The ability of independent candidates to fundraise on a level playing field is central to their ability to win power and further shake-up the nation’s long-standing political duopoly.
“Gifts between a nominated entity and its registered political party are not considered political donations” — Victorian Electoral Commission
Payments from the three shell companies to the major parties “not considered political donations”. Source: Victorian Electoral Commission
The ALP Albanese Government is currently seeking to push through “electoral reforms” at the federal level, under the stated aim of “removing big money from politics”.
Experts say the proposed changes would rig the federal “donations” laws in favour of the ALP and Coalition, stymieing the ability of independents to enter parliament.
The laws have already passed the lower house: they were rushed through by Albanese’s ALP just weeks before Christmas.
The highly-complex, 227-page Electoral Reform Bill — which would reshape the face of Australian politics for decades to come — was passed just 48 hours after being made public.
The ALP and Coalition voted down calls for the Bill to be first reviewed by a multi-party parliamentary committee, which is standard practice.
That’s despite the Albanese Government declaring it the “largest reform to Austalia’s electoral laws in over 40 years”.
It’s also despite global anti-corruption body Transparency International and the Centre for Public Integrity, a highly-regarded think-tank set-up by top former Australian judges, formally calling for the bill to be scrapped in its current form.
It’s also despite a November poll finding that more than four out of five Australians believe the proposed changes should be reviewed before being introduced to parliament.
(Labor and Coalition voters were most likely to agree: 83 per cent said the bill should be examined by a multi-party parliamentary committee).
Now Albanese’s bill is before the Senate — which sits over two weeks from next Tuesday, in what will almost certainly be the final parliamentary sittings before the federal election.
“It’s outrageous that the government and the opposition are rushing this through the parliament with no scrutiny” — Independent Kate Chaney
The Prime Minister’s Office refused to comment when asked by The Klaxon Tuesday whether the ALP was seeking to push the laws through the Senate — suggesting it almost certainly is.
The state of Victoria’s entire “register of nominated entities”. Source: Victorian Electoral Commission
Independent Zali Steggal told parliament the changes would entrench the major parties, “make it harder for new entrants to participate” in democracy and “has the unmistakable feel of rigging the market”.
“The unmistakable feel of rigging the market” —Independent Zali Steggal
Independent Kate Chaney said the Electoral Reform Bill “ is a disgrace”.
“There’s an argument for some sort of donation cap so no individual has too much influence on an election, but those bits are being used as an excuse to push through a huge increase in taxpayer dollars to current politicians and complicated spending caps that will lock in the major parties and lock out future Independents,” she said.
“This is the two parties colluding to stop future political competition” — Independent Kate Chaney
“This is the two parties colluding to stop future political competition.
“It’s outrageous that the government and the opposition are rushing this through the parliament with no scrutiny, despite saying it’s the biggest change to our electoral system in 40 years,” Chaney said.
The ALP, elected in 2022 on a platform of “integrity” and “accountability”, will likely see a substantial electoral backlash if it pushes ahead with the Bill.
Many long-time ALP voters have been deeply angered by the Federal Government’s failures over the National Anti-Corruption Commission (NACC).
Despite coming to power promising a transparent body “with teeth” – following decades of public pressure and overwhelming public support – it implemented a regulator that conducts is operations almost entirely in secret.
The only major finding connected to the NACC to date are that its Albanese Government-appointed boss, Commissioner Paul Brereton, has engaged in “officer misconduct”.
The “principal place of business” of “Pilliwinks Pty Ltd”, 30 Collins Street Melbourne. Photo: Anthony Klan/The Klaxon
The “nominated entity” through which the Victorian Liberal Party can receive limitless payments, Cormack Foundation Pty Ltd, is registered to a house in the affluent Melbourne suburb of Brighton.
The residential pro is both its “registered address” and “principal place of business”, according to official documents filed with the Australian Securities and Investments Commission (ASIC).
No one answered the door when the The Klaxon visited the home earlier this month.
The Victorian National Party’s “Pilliwinks Pty Ltd” is registered to an office tower at 30 Collins Street.
Both its “registered address” and “principal place of business”, since 2021, has been “Suite 132, Level 13, Collin Street, Melbourne”, ASIC filings show.
When The Klaxon visited the property, the front desk receptionist said he had never heard of the entity.
“As in tiddlywinks but with a ‘P’?” he asked.
We provided him with the exact name and the entities registered address.
“Never heard of it”, he said, reaching for his computer.
“Nope, can’t even find it on Google,” he said.
“It’s on Urban Dictionary…so that’s not a good thing,” he joked.
Regarding “Suite 123”, he responded:
“Nah nothing like that even here. Definitely not.”
“It’s on Urban Dictionary…so that’s not a good thing” — Receptionist
The “principal place of business” of “Pilliwinks Pty Ltd”. Source: ASIC
The three Victorian “nominated entities” are a paper exercise, putting a theoretical step between the parties and limitless “donations”.
A sign by the lifts shows the Victorian Liberal Party is based in the tower.
The ALP’s “nominated entity” is “based” at 438 Docklands Drive, Docklands, an office tower that houses the headquarters of the ALP in Victoria.
Under the Dan Andrews Government’s 2018 changes, other political parties can “nominate” their own “nominated entities”.
But they face different rules: any “nominated entity” declared after 2020 is bound by the $4,850 donations cap.
The Victorian laws states that “planning or acting out a scheme” to “get around” the donations caps carries a penalty of “up to 10 years’ prison time”.
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