Reforms Needed

The National Anti-Corruption Commission is at a crossroads.

Now, more than ever, Australia needs to invest in strengthening the institutions upon which our own democracy depends.

The Australia Institute worked to establish a federal anti-corruption watchdog for almost a decade. In 2023, the Labor government established the National Anti-Corruption Commission. Now it is time to ensure it works effectively.

The five key reforms needed:

1. Bring forward the statutory review of the NACC

The NACC is created by legislation, the National Anti-Corruption Commission Act (NACC Act). The NACC Act requires the Minister to hold an independent review into the operation of the NACC Act within five years of the Act coming into operation, unless a parliamentary committee has already commenced a review of the Act.

Parts of the NACC Act commenced in December 2022, with the remainder commencing in July 2023, meaning it could be as late as 2027 before a review of the NACC is held.

Given that major problems with the governance and powers of the NACC have already been identified, this is too long to wait. Bringing the independent review forward would allow the NACC to course correct before it goes too far adrift.

2. Give the NACC the power to hold public hearings whenever it is in the public interest

The NACC can only hold public hearings in “exceptional circumstances” and when “it is in the public interest to do so”.

Public hearings would build trust and allow the commission to demonstrate that it is investigating corruption effectively and appropriately. They would also discourage corruption by showing the consequences for such behaviour.

Australia Institute research shows that two in three Australians (67%) want an anti-corruption commission with the ability to hold public hearings whenever it is in the public interest to do so. The NACC is yet to hold a public hearing.

3. Expand the Inspector’s powers to review more of the NACC’s operations

Because the NACC has such broad powers, there is an independent inspector who investigates complaints made about its conduct or activities. The inspector’s powers are focused on ensuring the NACC itself complies with the laws and behaves fairly.

The inspector should also oversee the performance of the NACC, including how long its inquiries take and whether its actions align with its objectives.

4. Ensure no party has the majority vote on the NACC’s parliamentary committee

The NACC is overseen by a parliamentary committee. The Government selects the commissioner and deputy commissioner of the NACC, but its choice is approved or rejected by a parliamentary committee. However, because the government has half the committee seats, plus the casting vote of the chair, the same party that selects the commissioner and deputy commissioner has the numbers to approve them even if every other committee member is opposed.

To ensure that no one party has majority control, the committee should be able to select any member as chair, or the role should rotate between committee members.

5. Implement a Whistleblower Protection Authority

The NACC can initiate investigations in response to referrals from whistleblowers. Therefore, it is essential that whistleblowers are able to speak up without fear of reprisal. While the NACC includes some protections, more are needed to give whistleblowers the confidence to speak out.