The intended objectives of the Foreign Influence Transparency Scheme (FITS) to enhance public awareness regarding foreign influence on Australian governance and politics, have not been adequately met, a review conducted by the Parliamentary Joint Committee on Intelligence and Security has revealed.
Under the FITS Act, passed in 2018, people and organisations who attempt to influence government or politics in Australia need to record their activities in a publicly accessible register.
These activities include parliamentary and general political lobbying, communications activities, and payment of money or gifts of things of value.
A separate review was also commissioned by the Department of Home Affairs, and undertaken in early 2021 by John Garnaut, a senior risk advisor at McgrathNicol. However, due to redactions, the Committee was given only partial access to this report.
The Committee was able to determine the FITS Act’s limitations, including its narrow scope of covered activities and entities, have hindered its efficacy.
Low Numbers Registered
Despite the Act’s requirements, registration numbers have remained low since its inception.
As of Feb. 1 this year, only 106 individuals and entities had registered, disclosing 476 activities on behalf of 229 foreign principals from 44 jurisdictions.
Notably, China, Japan, and the United States have featured prominently among registered activities.
Sanctions under the FITS Act have also been rare. The department can issue what are called “transparency notices” and “information gathering notices,” and undertake criminal prosecutions. Since the scheme’s inception, no prosecutions have been commenced.
Transparency notices declare an individual or entity to be a foreign principal, and alert them that registration obligations may arise for activities conducted on behalf of foreign interests.
Since the Act came into force, only two provisional transparency notices have been issued, one of which was revoked and the other confirmed as being a foreign principal.
The first concerned the Confucius Institute at the University of Sydney, but was revoked one month after it was issued, with the department stating it was no longer satisfied that it met the definition of a foreign government-related entity after it changed its governance arrangements.
The other cited the Australian Council for the Promotion of Peaceful Reunification of China (ACPPRC) Incorporated, and was confirmed as a foreign principal in early 2023.
Information gathering notices require a person to produce documents to satisfy the department as to whether they are required to register under the Act. 24 of these have been issued to date.
The Committee has made 14 recommendations to improve the Act and its operation, including broadening the definition of a foreign government-related entity or individual, reviewing existing exemptions, improving compulsory registration obligations on former Cabinet Ministers and other “recent designated position holders,” giving the department the power to add entries to the register, and mandating regular reviews following any amendments to the Act.
