Crime and Corruption Commission issues warns the LNP government on rolling back ban on developer donations to political parties

Rosanna Ryan

Laws that would allow property developers to make political donations are “out of step” with the last decade of electoral reforms, Queensland’s Crime and Corruption Commission has warned in its submission to a state inquiry on the coming changes.

Property and infrastructure investment in Queensland would increase as its capital geared up to host the Olympics in 2032, the corruption watchdog noted, bringing “real and/or perceived risks of undue or improper influence, particularly as developer interests align closely with major projects”.

Current laws that ban property donations at a state level were brought in after the CCC’s Operation Belcarra, which investigated allegations of corruption at Ipswich, Logan, Moreton Bay and Gold Coast during the 2016 council election.

But the new legislation, introduced by Attorney-General Deb Frecklington in last year’s final day of parliament, would remove the ban on property developers, and lift the cap for any donations from $12,000 to $48,000 per financial year.

In the CCC submission, chairperson Bruce Barbour wrote that different requirements at the state and local level – where developers would still be banned from making donations for electoral purposes – might create confusion and uncertainty.

He called for greater disclosure and transparency requirements, for example requiring property developers to disclose all donations, even those under the cap, and for the origin of donations to be “clearly identifiable and traceable”.

Seventy-seven submissions from interest groups and individuals were published online in January as the justice, integrity and community safety committee consulted on the Electoral Laws (Restoring Electoral Fairness) Amendment Bill.

The Australia Institute said despite the legislation’s title, the changes would make state elections less fair. “Political involvement by property developers represents a particular threat to good government and integrity, because property developers are particularly dependent on project approvals and other government decisions,” the Canberra-based think tank’s submission said.

“The danger is not just of ‘quid pro quo’ corruption, but also clientelism, where an officeholder is compromised by their dependence on patronage. This form of corruption is hard to criminalise, so it is better to, as earlier rulings put it, ‘identify and remove the temptation’ – in this case, by banning property developer donations.”

The Property Council of Australia told the inquiry its industry had been demonised and should be afforded the same treatment as other sectors and unions.

“Decision-making power has always resided with our politicians and regulators, and the only way to ensure the system operates fairly is to ensure politicians hold themselves to account when in public office and that every Queenslander is treated the same,” the council’s Queensland executive director Jess Caire wrote in its submission.

Dozens of other submissions focused on the amendments that would tighten up restrictions on prisoners’ voting rights.

Free market think tank the Institute of Public Affairs wrote to encourage the government to abandon compulsory preferential voting, as then-opposition leader David Crisafulli had promised during the last election campaign, though this change was not included in the new laws.