Review Finds Laws Targeting Foreign Interference Not Meeting Their Objectives
Investigative journalism and parliamentary inquiries have been more effective in uncovering foreign influence on Australia’s government and politics.
The review conducted by the Parliamentary Joint Committee on Intelligence and Security revealed that the Foreign Influence Transparency Scheme (FITS) has not adequately met its intended objectives of enhancing public awareness regarding foreign influence on Australian governance and politics.
Passed in 2018, the FITS Act requires people and organizations attempting to influence government or politics in Australia to record their activities in a publicly accessible register. These activities include parliamentary and general political lobbying, communications activities, and the payment of money or gifts of value.
A separate review conducted by John Garnaut, a senior risk advisor at McgrathNicol, revealed limitations of the FITS Act, such as its narrow scope of covered activities and entities, have hindered its effectiveness. The Committee suggested that while the FITS achieves some of its intended outcomes, more transparency around cases of foreign influence has been achieved through investigative journalism and other inquiries.
Low Numbers Registered
Despite the requirements of the Act, registration numbers have remained low since its enactment. As of Feb. 1, only 106 individuals and entities had registered, disclosing 476 activities on behalf of 229 foreign principals from 44 jurisdictions. Notably, activities related to China, Japan, and the United States have been prominent among the registered activities.
Sanctions under the FITS Act have been rare, with no prosecutions commenced since its inception. The department can issue transparency notices to alert individuals or entities that registration obligations may arise for activities conducted on behalf of foreign interests. Information gathering notices have also been issued to ensure compliance with the Act.
The Committee has made 14 recommendations to improve the Act and its operation, including broadening the definition of a foreign government-related entity, reviewing existing exemptions, and mandating regular reviews following any amendments to the Act.
