Groups like the Australian Industry Group ($68m), the Australian Banking Association ($14m) and the Property Council of Australia ($38m) receive large amounts of money from their members each year.

They’re led by high-profile officials who can regularly be found roaming the halls of Parliament House or along the Parliamentary Press Gallery.

They often appear in the media described as “peak bodies” whose purpose is to represent the interests of their members.

But do they really?
And is that all they do?

A new report examining 20 of Australia’s largest and most influential trade associations recommends lifting the lid on how these organisations spend members’ money … and calls for greater transparency around their relationships with politicians.

Key Findings:

There are potential misalignments between the interests of lobby groups and the shareholders of their member companies, including on:

• Climate action
• Public health
• Resistance to competition and regulation.

Recommendations: 

• Trade associations should be required to disclose their members and how much each member contributed.
• Requiring publicly-listed companies to secure shareholder approval of political donations and memberships of trade associations.
• Removing tax deductibility for trade association memberships and political advertising.

“Australians want more transparency regarding the lobbying activities of trade associations, especially where these extend to political donations and campaigns aimed at influencing government policy,” said Dr Monique Ryan, Federal Member for Kooyong. 

“They have little insight into the conduct of organisations which represent them professionally, many of which have no enforceable code of conduct.

“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.

“The public shouldn’t be subsiding an industry lobbying on its own behalf on issues which may be against the public interest.”

“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,” said Bill Browne, Director of the Australia Institute’s Democracy & Accountability Program.

“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.

“Misalignments include lobby groups overstating the contribution of their sector in order to win a social licence to operate; downplaying climate or public health risks; and exploiting political connections.”

“InfluenceMap’s analysis consistently finds that industry associations are engaged in advocacy on climate policy much more often than their member companies – and that they often take positions that are not aligned with the majority of their members,” said Jack Herring, Australia Lead at InfluenceMap.

“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.

“This research from The Australia Institute helps shine a light on those industry associations exerting the most influence over Australia’s policymaking process and makes a clear case for the need for improved disclosure requirements.”

“An increasing number of shareholders and investors are very concerned that coal and gas lobby groups seem to be stuck in time, refusing to recognise that their industries have hit their expiry date,” said Axel Dalman, Head of Research, Market Forces.

“Coal and gas industry associations are blocking progress on climate action that Australians want while pushing for more fossil fuels, endangering a safe environment and sustainable economy.

“Global investors are saying the Australian fossil fuel industry has its head stuck in the sand.”