The Foreign Influence Transparency Scheme seeks to provide transparency about the activities that are being undertaken in Australia on behalf of foreign principals such as foreign political organisations and government entities.
Individuals and corporations are required to register under the scheme if they carry out “registrable activities” such as political lobbying, in Australia on behalf of a foreign principal, for the purpose of political or governmental influence.
Registrants who do not comply with the requirements of the scheme face serious penalties which include imprisonment.
This article explores the key offences and potential penalties for non-compliance as outlined by the Attorney-General’s Department.
Penalties for non-compliance with the Foreign Influence Transparency Scheme
Under the Foreign Influence Transparency Scheme Act 2018, there are four different offences for non-compliance. These offences, and the associated penalties, are summarised below:
| Offence | Penalties |
| Undertaking registrable activities while not being registered under the scheme | From six months to five years imprisonment, depending on the seriousness of the conduct. |
| Failure to fulfil responsibilities (e.g. reporting and disclosure obligations) under the scheme | Penalties range from a fine of 60 penalty units to six months imprisonment, depending on the seriousness of the conduct. |
| Providing false or misleading information or documents in relation to an individual’s registration | The maximum penalty for this offence is three years imprisonment. |
| Destroying records in connection with the scheme | The maximum penalty for this offence is two years imprisonment. |
Undertaking a registrable activity while not registered
It is a criminal offence for a person to not register under the scheme when they should do so. It is also an offence for a person to undertake a registrable activity on behalf of a foreign principal while not being registered.
The types of activities that are registrable are:
- Parliamentary lobbying.
- General political lobbying.
- Communications activity.
- Disbursement activity.
Failure to fulfil responsibilities under the scheme
It is an offence for a person to fail to meet reporting obligations under the scheme. This includes:
- Failing to give notice related to material changes in circumstances, disbursement activity, a review of registration when a voting period begins, or registrable activity during voting periods.
- Failing to make a disclosure about communications activity.
- Failing to keep records related to the registration.
It is also an offence for a person to not comply with a notice from the Attorney-General’s Department requesting information.
Providing false or misleading information or documents
It is an offence to give false or misleading information or documents to the Attorney-General’s Department in relation to any registration under the scheme.
Destroying records
It is an offence to:
- Damage, destroy or conceal records that are required to be kept in relation to any registration under the scheme.
- Take any action to prevent a registrant from keeping proper records related to the scheme.
Conclusion
If you carry out registrable activities such as political lobbying in Australia on behalf of a foreign principal, for the purpose of political or governmental influence, you are required to register under the Foreign Influence Transparency Scheme, whether you are acting as an individual or an entity. Failure to register, or to comply with the requirements of the scheme, can lead to penalties ranging from a fine to five years imprisonment, depending on the seriousness of the conduct.
