Gina Rinehart's company Hancock Prospecting has declared a $150,000 political donation more than a year after the legal deadline, following the ABC's revelation the funds were sent to the Liberal Party via a third party.
Hancock Prospecting made its official declaration to the Australian Electoral Commission (AEC) just two days after the ABC asked a series of questions — and 444 days after the legal deadline of November 17, 2021.
The donation to the Liberal Party was made via the Sydney Mining Club, a small company run by mining entrepreneur Julian Malnic.
The maximum penalty for failing to disclose a $150,000 donation is $450,000.
The AEC declined to say whether it was investigating Hancock Prospecting for not declaring the payment but has told the ABC it is focused on ensuring incorrect disclosures are amended to allow for full disclosure.
Professor Joo-Cheong Tham, director of the Electoral Regulation Research Network, said the donation gave the AEC grounds to consider prosecution, and believed the AEC should take a "robust approach to compliance with the law".
"Given the amounts involved and penalties available, it seems to be a ripe case for enforcement," he told the ABC.
"My view is that they need to be strategic in terms of how they allocate enforcement resources," Professor Tham said.
Barrister and director of the Centre for Public Integrity Geoffrey Watson agreed.
"There's obviously a breach and the offence is a serious one which would carry a 450k fine … that's at least worth investigating."
"The AEC seems to have a rather cavalier attitude towards compliance — that late compliance is good enough," Mr Watson said.
Money to Liberals, via mining club
The ABC reported earlier this month that Hancock Prospecting gave $190,000 to the Sydney Mining Club, with the understanding the Club would pay $150,000 to the Liberal Party's events and fundraising arm, the Australian Business Network.
Under the Commonwealth Electoral Act, gifts to a third party intended to benefit a political party must be treated as a gift to the political party and declared as such.
Mr Watson said the arrangement appeared to be a "scheme" intended to "avoid the impact" of the federal election funding laws.
When approached by the ABC, the Sydney Mining Club denied the money it paid to the Liberal Party had come from Hancock Prospecting, despite emails between mining club staff saying that was the case.
Chair of the club Julian Malnic told the ABC the money came from the club's sponsors, which did not include Hancock.
But in an email later sent to club sponsors, and seen by the ABC, Mr Malnic said the money had not come from sponsors at all — and that that "would be way beyond our ethical standards".
An ABC investigation revealed the arrangement between Hancock Prospecting and the Sydney Mining Club was an ongoing one, intended for four years.
Two of the four intended payments have already been made, meaning the arrangement has so far added a $300,000 lining to the Liberal Party coffers.
The second payment proceeded at the start of the current financial year. If declared in accordance with Australian electoral law, it should appear on the AEC's website in February 2024.
