Monique Ryan wants tax deductions for lobby groups scrapped. Photo: File.
Well-resourced lobby groups have successfully scuppered poker machine reforms and sowed doubt about the transition towards renewable energy in Australia, but their influence may be declining, according to a think tank report released on Friday (13 December).
The Australia Institute’s research paper, Trade Associations: The Big Picture, also argued that these groups often did not act in their members’ interests. It also called for repealing tax deductions for industry campaigns aimed at influencing government.
The study spotlighted 20 of Australia’s largest and most influential trade associations, such as the Australian Banking Association, the Minerals Council of Australia and the Australasian Gaming Association.
These groups tend to represent a particular industry as “peak bodies” and provide membership benefits such as research, training and hosting networking events. However, they also run campaigns to change government policy and have close associations with various politicians and political parties.
“Corporations spend shareholder money on political campaigns that shareholders may not support or even know about – often by funnelling it through lobby groups to avoid taking responsibility for their spending,” Bill Browne, Director of the Australia Institute’s Democracy & Accountability Program, said.
“Trade associations are powerful political lobbies that can change the direction of this country’s laws and help bring down governments – but little is known about their operations and funding.
“There are misalignments between the interests of shareholders and the peak lobby groups being funded on their behalf.
“The Business Council of Australia is a key example of this, frequently advocating for the continued role of fossil fuels, including fossil gas, in Australia’s energy mix – contrary to the scientific consensus – and in doing so representing the interests of its oil and gas membership over other sectors.”
Lobby groups have prevented pokies reform, claims the report. Photo: Michelle Kroll.
The report highlighted examples of where lobby groups have successfully changed policy – such as when the Rudd Labor Government scrapped a proposed 30 per cent “super profits” tax from the mining of iron ore and coal after a $20 million advertising campaign by the Minerals Council of Australia that was critical of the tax in 2010.
The report states that peak body campaigns have also contributed to the federal, NSW and Tasmanian governments’ opposition to poker machine reform.
However, the Australia Institute argues there’s evidence that lobby group influence may have waned in recent years. It cites the example of the Queensland Labor government pursuing a coal royalty tax despite a $40 million advertising campaign against it and the NSW Liberal Government proceeding with cashless gaming card reform despite lobbying from Clubs NSW (although the Liberals lost the election before they could implement their policy).
Nevertheless, Independent member for Kooyong Monique Ryan says Australians want more transparency regarding trade associations’ lobbying activities, especially when these extend to political donations and campaigns aimed at influencing government policy.
“They have little insight into the conduct of organisations which represent them professionally, many of which have no enforceable code of conduct,” Dr Ryan said.
“Companies should have to disclose payments made to trade associations to their shareholders, and their trade association memberships and political advertising should not be tax deductible.”
