Parliamentary joint committees make recommendations to Australian Government concerning covert powers for the federal Anti-Corruption Commission and government decision-making in relation to armed conflict

Parliamentary Joint Committee supports covert powers for federal Anti-Corruption Commission 

Medianet Press Release, 29 March 2023:

Committee supports covert powers for Anti-Corruption Commission

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Parliament of Australia

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The Parliamentary Joint Committee on Intelligence and Security (PJCIS) today presented its Advisory Report on Item 250 of the National Anti-Corruption Commission (Consequential and Transitional Provisions) Bill 2022.

The report considers Item 250 of the National Anti-Corruption Commission (Consequential and Transitional Provisions) Bill 2022, which was passed into law in December 2022.

Item 250 amended section 110A(1) of the Telecommunications (Interception and Access) Act 1979 (TIA Act) to allow the National Anti-Corruption Commission (NACC) access to stored communications and telecommunications data.

The Committee made seven recommendations in relation to the reform of Australia’s electronic surveillance framework, parliamentary privilege and security of information.

The Committee noted that Item 250 gives a wide range of covert powers to the NACC and considered the effect of the use of these powers on parliamentary privilege. The Committee recommended the Government ensure the protection of parliamentary privilege in relation to the use of covert powers in its Reform of Australia’s Electronic Surveillance Framework. Further the Committee considered that the TIA Act should be expressly amended to ensure that the provisions of that Act do not abrogate parliamentary privilege.

The Committee also recommended that, given the sensitivity of information to be collected and stored by the NACC, it should be required to comply with the Essential Eight Maturity Model to Maturity Level Three as recommended by the Australian Cyber Security Centre. Finally, the Committee recommended that employees at the NACC hold a security clearance of at least Negative Vetting Level 1, with increased requirements up to Positive Vetting depending on their access to sensitive information.

Committee Chair Mr Peter Khalil MP said: ‘The Committee supports allowing what will be Australia’s premier anti-corruption agency the covert powers necessary to undertake its important work. The Committee has recommended some additional measures to ensure that the NACC can operate effectively while ensuring necessary protections for parliamentary privilege, and for sensitive information.”

Further information on the inquiry as well as a copy of the report can be obtained from the Committee’s website. 

ENDS

Parliamentary Joint Committee concluded there is a clear need to improve the transparency and accountability of government decision-making in relation to armed conflict 

Medianet Press Release, 31 March 2023:

'War Powers' Inquiry into International Armed Conflict Decision Making

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Parliament of Australia

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The Defence Subcommittee of the Joint Standing Committee on Foreign Affairs, Defence and Trade has completed its examination on how Australia makes decisions to send service personnel into international armed conflict.

Defence Subcommittee Chair, Mr Julian Hill MP, said “The power to declare war and send military personnel into conflict is arguably the most significant and serious institutional power, and the gravest decision a government can make.

“Through this inquiry, the Committee has carefully and seriously considered fundamental questions regarding decision-making in relation to international armed conflict and parliamentary oversight, both preceding and during the commitment of the Australian Defence Force.

“The Committee has concluded there is a clear need to improve the transparency and accountability of government decision-making in relation to armed conflict. Australia’s system of parliamentary democracy is likely to be kept healthy, effective, and well-adapted by making sensible changes that respect our well-established institutions and conventions.

“Accompanying recommended changes to the Cabinet Handbook and new Standing Resolutions of both Houses of Parliament, the Government has an historic chance to exercise leadership and establish the Joint Statutory Committee on Defence to enhance Australia’s national security while providing increased parliamentary scrutiny of Defence.

“In 1988, Prime Minister Bob Hawke created the Parliamentary Joint Committee on ASIO, rejecting the advice of the Hope Royal Commission not to enhance parliamentary oversight of the intelligence agencies. History has proved he was right to do so, and the Government is encouraged to emulate Prime Minister Hawke’s example and act to strengthen national security and enhance the accountability of Defence to the Parliament.

“The Committee is convinced that greater transparency and parliamentary consideration of the decision to commit forces to an armed conflict can and must occur, and commends this report, on this most serious of subjects, to the Government”.

The Committee’s recommendations are to:

• Reaffirm that decisions regarding armed conflict are fundamentally a prerogative of the Executive, while acknowledging the key role of Parliament in considering such decisions, and the value of improving the transparency and accountability of such decision-making in the pursuit of national interests.

• Amend the Cabinet Handbook to:

• Restore the primacy of the Governor-General under Section 68 of the Australian Constitution to give effect to decisions of government in relation to war or warlike operations, particularly in relation to conflicts that are not supported by resolution by the United Nations Security Council, or an invitation of a sovereign nation

• Require a written statement to be published and tabled in the Parliament setting out the objectives of major military operations, the orders made and legal basis

• Require Parliament to be recalled as soon as possible to be advised and facilitate a debate in Parliament at the earliest opportunity following a ministerial statement, based on the 2010 Gillard model, including a statement of compliance with international law and advice as to the legality of an operation

• Introduce Standing Resolutions of both Houses of Parliament to establish expectations of Executive Government in relation to accountability for decisions in relation to international armed conflict, including regular Statements and Updates from the Prime Minister and Minister for Defence.

• Establish via legislation a new Joint Statutory Defence Committee, modelled on the Parliamentary Joint Committee for Intelligence and Security, able to receive classified information to improve parliamentary scrutiny of Defence strategy, policy, capability development acquisition and sustainment, contingency planning, and major operations.

Thank you to the many stakeholders and submitters who contributed thoughtfully to the inquiry whose carefully formed and expert views are acknowledged with respect and drawn upon in this report.

Further information in relation to the inquiry is available from the JSCFADT’s website.

ENDS

In which Liberal & Nationals MPs behaved badly in the Australian House of Representatives over three consecutive days....

 

Presumably at the direction of the Coalition Leader or the manager of Opposition business in the House at approximately 5:40pm on Tuesday 28 March 2023 Liberal and Nationals MPs began leaving the Chamber to avoid participating in one of the votes conducted during the passage of the Social Security (Administration) Amendment (Income Management Reform) Bill 2023.

During this piece of self-indulgent performative politics, Liberal MP for Wannon & former Minister for Trade, Tourism and Investment Dan Tehan, Liberal MP for Hume & former Minister for Industry, Energy and Emissions Reduction Angus Taylor, Liberal MP for Canning & former Assist. Minister for Defence Andrew Hastie, Liberal-National MP for Wide Bay & former Deputy-Speaker Llew O’Brien, Liberal MP for Flinders Zoe McKenzie, Liberal-National MP Ted O’Brien and, Nationals MP for Nicholls Sam Birrell, demonstrated disrespectful, juvenile, boorish and dangerous behaviour…..

Clips of the incident from yesterday, where Coalition members pushed their way our of the House of Reps after the speaker called for the doors to be locked (with about 6 minutes of inconsequential division time cut from the middle). pic.twitter.com/zfmEB3JRa0

— Michael Mazengarb (@MichaelM_ACT) March 28, 2023

House of Representatives Hansard, Tuesday 28 March 2023 at 5:41pm, excerpt:

The SPEAKER (17:41): Before we go any further, I wish to 

call the Leader of the House, and I want absolute

silence for this.

Mr BURKE (Watson—Minister for Employment and  Workplace Relations, Minister for the Arts and Leader of the House) (17:41): I am not in a position to name individual members of parliament, but we as a House cannot be in a situation—out of respect for the staff who work in this building—where, when you ask people to lock the doors, they have members of parliament physically pushing past them to get out of the room. There are standing orders that are quite specific in terms of people's obligation. Once you say, 'Lock the doors,' at that moment people have to move to the seats and pick a side or do as some members did, quite appropriately, and take the advisers' boxes.

Mr Speaker, regardless of Practice and standing orders, we cannot be in a position, as a House, where people are using their physical size to push past the members of staff after you have said, 'Lock the doors.' It would be

appreciated if you could review the video. It would also be appreciated if the members involved reported directly to you so that you can work out what the appropriate action is.

The SPEAKER (17:42): I shall be taking the issue very seriously. I will report back to the House.

And all seven were forced to publicly apologise on the floor of the House…...

https://youtu.be/q_8SWGJ5A0o?t=114

House of Representatives, Hansard, Wednesday 29 March 2023 at 9:01am, excerpt:

STATEMENT BY THE SPEAKER

Parliamentary Standards

The SPEAKER (09:01): Before we proceed with business today, I want to address a very serious and grave incident that occurred during a division yesterday afternoon. I thank the Leader of the House for raising this incident with me at the time. After the bells had been rung, I ordered that the doors be locked. After I gave this order, I am aware that a number of members exited the chamber while one of the attendants was attempting to close and lock the door to the opposition lobby, as directed.

As all members are aware, under standing order 129 after the Speaker orders the doors to be locked no member may enter or leave the chamber until after the division. It does not matter whether the doors have been able to be fully closed, the point at which the order is given from the chair is the point at which no member is allowed to enter or leave the chamber.

The most serious aspect of this incident is that members physically pushed their way past the attendant to get out of the chamber, resulting in the attendant getting hit in the doorframe and hurting their arm. I am particularly disgusted by this behaviour, and I will not tolerate it. For a staff member of this place to be treated in this way when they are simply doing their job is disrespectful and a very serious matter.

I have spoken to the parliamentary staff who were involved or who observed the incident and have reviewed a written report from them. I want to make it clear that I am committed to ensuring that this building and this chamber are safe and respectful places of work for all. No staff member should be hurt in the course of doing their work in service of this House. We all know that members are busy. However, I am sure we would all agree that no member's time is worth more than a staff member's safety.

In light of this issue and other recent issues raised with me, I will be writing to all members with a review to reinforce this and to ensure that members are in no doubt as to their obligations to treat this chamber and parliamentary staff with respect.

The Australian people expect members to maintain the highest of standards in terms of conduct and behaviour. We have been reminded of this in Set the standard: Report on the independent review into commonwealth parliamentary workplaces. For all members and staff, I remind them that the Parliamentary Workplace Support Service, PWSS, supports people affected by serious incidents or misconduct in the parliamentary workplace. This service is available at all hours.

I am now going to give indulgence to members who left the chamber following my order to lock the doors to apologise to the House for their actions.

Mr TEHAN (Wannon) (09:04): Speaker, I left the House as you were saying close the doors, and I apologise for my conduct.

Mr TAYLOR (Hume) (09:04): I apologise to the House, Speaker, for leaving the house after your directions were given.

Mr LLEW O'BRIEN (Wide Bay) (09:04): Mr Speaker, I unreservedly apologise to the House and yourself for leaving after your direction yesterday. I also apologise to the staff, if they were involved in this. Our staff here in the chamber do an incredible job, and one of them is not crowd control. I apologise again for that.

Mr TED O'BRIEN (Fairfax) (09:04): Mr Speaker, I too unreservedly apologise to the House.

Ms McKENZIE (Flinders) (09:05): I apologise to the House, Mr Speaker, for seeking to leave after the Speaker had ordered that the doors be closed. I deeply regret and apologise for any impact caused to the staff member involved.

Mr BIRRELL (Nicholls—Deputy Nationals Whip) (09:05): Mr Speaker, I sought to leave the House after your

order and I unreservedly apologise to you and to the House for that. I have offered an apology to the attendant who was on the door at the time.

Mr HASTIE (Canning) (09:05): Mr Speaker, I also apologise unreservedly to you and to the House for

attempting to leave after the doors were to be locked. I particularly regret any issues with the staff member involved and I apologise to her unreservedly.

It should be noted that only Ms. McKenzie and Messrs. Birrell, L. O’Brien & Hastie offered apologies to the staff. Messrs. Tehan, Taylor & E. O’Brien were markedly less gracious in their apologies.

Let's not bother to go to the office today....

Liberal and Nationals MPs, not content with the performative display on Tuesday 28th decided to repeat their dummy spit for House of Representative cameras two days later.

This is a view of the House as The Speaker Milton Dick enters at 8:59am on Thursday 30 March 2023. The first item of business for the day was the second reading of the bill "Constitution Alteration (Aboriginal and Torres Strait Islander Voice) 2023".

View of near empty Opposition benches at 9:02am as the Australian Attorney-General Mark Dreyfus begins his second reading speech at 9:02am.

Another view of the House during the Attorney-General's second reading speech showing the Government benches on the near and far right of the image. The near left being sparsely populated Opposition benches (Liberals & Nationals) and far left Independents & minor parties benches. 

View of the House showing Labor, the cross benches and the visitors gallery clapping as the bill was listed as read and mostly silent members of the Opposition immediately leaving the Chamber at 9:21am.

It would appear that the Liberal MPs who did the right thing and were in their seats for the entire second reading process were predominately Opposition backbenchers:

Member for Longman

Member for Monash

Member for Sturt

Member for Forde

Member for Fisher.

They were in the company of three other Liberal MPs - one I took to be the Member for Bradfield, another the Member for Berowra and the third I could not identify.

One could be excused for suspecting that the handful of other Liberal and Nationals MPs who were in the Chamber by the end of the bill's second reading might have belatedly turned up just to avoid any accusation of non-attendance.

Australian Prime Minister Anthony Albanese gives update on Indigenous Voice and referendum wording

 

https://www.youtube.com/watch?v=_dwC0xmBCKA&t=16s

 

And as Australia enters the first month of 2023.......

It is perhaps well to remember that whilst the cronyism, venality and often industrial scale corruption of national governments is well known in history, here in Australia we appear to hold the quaint notion that as a democracy we will not be led by the likes of a Pahlavi, Marcos or Putin. Men who sought not only authoritarian power but also to enrich themselves from the public purse and their nation’s resources.

But does the example of the former Morrison Government and what is happening in the U.S. right now not make one wonder if we here in Australia need to clearly define limits to the powers held by a prime minister and, perhaps also require all members of any federal Cabinet or outer ministry to present their tax returns to the Parliament for formal audit every year they are in government?

For that matter, perhaps it is well past time that members of a federal government are denied access to taxpayer funds to defray court ordered financial penalties & legal costs in relation to defamation or sexual harassment proceedings.

Both Morrison & Trump ignored democratic principles and processes whenever they chose, with Trump’s action being perhaps the more egregious. However, one has to wonder if profiteering from public office was something both national governments did – if not to the same scale at least with the same frequency.

In Australia we will never know because we have such weak mechanisms to monitor or prevent such things. The Parliament often being reluctant to police members' specific pecuniary interests, the Constitution not shutting the door firmly enough on profiting from the Crown and the Register of Members’ Interests being nothing more than a risible fig leaf covering suspected dodgy trusts and self-managed super funds.

Consider former U.S. president Donald Trump’s financial affairs and ask yourselves: Could some of the prime ministers and/or ministers in office between September 2013 and May 2022 have conducted their own financial affairs in a similar manner?

To call the business structure that Donald John Trump built – carried with him into the White House and back out again - ‘Byzantine’ is being kind.

It appears to be a maze of est. 500 inter-related companies, subsidiaries, partnerships, trusts, overseas bank accounts and possibly shells, potentially designed to literally push financial bullshite uphill until a business income loss or tax credit could be established on paper for personal benefit.

During his first presidential election campaign in 2016 Trump self-reported net wealth of almost US$10 billion with debts of at least US$265 million – thought at the time to be achieved by an exaggeration of property and brand values and that his net wealth would be closer to est. US$4.1 billion. There were calls to show his tax return. He promised to reveal his tax returns but didn’t.

As president he continued to falsely complained that his tax affairs were under almost continuous Internal Revenue Service (IRS) audit so it was impossible for him to release them.

Once the nation voted him out of office Trump went to the U.S. Supreme Court in an attempt to stop the release of his tax returns for the years 2015 through to 2020. A legal battle he lost in TRUMP, DONALD J., ET AL. V. COMM. ON WAYS AND MEANS, ET AL on 22 November 2022.

He was so successful in his resistance up until then that only one incomplete mandatory IRS audit occurred during his presidency - being ordered in September 2019 for the tax year 2016, but never completed and appears to have been quietly abandoned. Trump appointee as IRS Commissioner, Charles P. Rettig, reportedly excused the then president from the mandatory auditing process sometime during his tenure as commissioner.

On 16 June 2021 the U.S. Congress House Committee of Ways and Means wrote to the Treasury Secretary seeking details of the required annual mandatory audits of Trump’s personal tax returns during his presidency, unaware of the true state of affairs.

This letter requested all audit materials from 2015 to 2020 with particular reference to:

whether an IRS examination of the returns took place and the present status of the audits, the applicable statutes of limitations, and the issues considered:

1. The Federal income tax returns of Donald J. Trump (Form 1040),

2. The Federal income tax returns of the Donald J. Trump Revocable Trust,

3. The Federal income tax returns of DJT Holdings LLC (Form 1065),

4. The Federal income tax returns of DJT Holdings Managing Member LLC (Form 1120-S),

5. The Federal income tax returns of DTTM Operations LLC (Form 1065),

6. The Federal income tax returns of DTTM Operations Managing Member Corp (Form 1120-S),

7. The Federal income tax returns of LFB Acquisitions Corp (Form 1120-S),

8. The Federal income tax returns of LFB Acquisition LLC (Form 1065), and

9. The Federal income tax returns of Lamington Farm Club, LLC d/b/a Trump National Golf Club-Bedminster (Form 1120-S).

Trump’s personal tax returns were joint filings with his wife Melania and listed one son as a dependent. He stated his main source of income was derived from “Management Services”, “Aviation”, “Speaking Engagements”, “Real Estate”, “Golf”, “Ice Skating Rink”, and “Restaurant”.

For a man who repeatedly bragged about his business acumen and wealth in the billions, his 2015 personal and business tax returns indicated that he carried forward business loses of US$105.15 million and he and his wife declared a 2015 calendar year joint negative income of $31.7 million leaving a nominal tax bill of $0.

So by 2015 either he was fast approaching the need for yet another strategic corporate bankruptcy or he had applied the most ‘creative’ accountancy when dealing with the U.S. IRS for that year and the following five years.

Either way, once in the Oval Office Trump appears to have continued to follow his own unique tax return template so that by 2020 he was still paying low tax or no tax – apparently due in part to sizeable business income losses at two of the nine entities whose tax returns were requested by the House Committee on Ways and Means – DJT Holdings Managing Member LLC and DTTM Operations LLC. It is interesting to note that 2020 was also a year devoid of charitable donations by Mr. & Ms. Trump and, it seems that there is some suspicion that previous charitable donation figures may be largely unsupported by appropriate documentation.

Page 2 of the House Committee on Ways and Means Final Report spells out some specific accounting concerns:

• Charitable contributions—whether the 2015 conservation easement deduction of $21 million and other large donations reported on the Schedule A were supported by required substantiation.

• Verification of Net Operating Loss Carryover Schedule—whether the amount of net operating loss carryover in 2015 of $105,157,825 and future years was proper.

• Unreimbursed partnership/S corporation expenses—whether the terms of the partnership agreements supported unreimbursed expense deductions totaling $27 million over six years.

• Related party loans—whether loans made to the former President’s children are loans or disguised gifts that could trigger gift tax.

• Cost of goods sold deductions by DJT Holdings—whether these deductions of about $126.5 million over five years is appropriate when it is not clear what DJT Holdings is selling from the face of the return.

• LFB Acquisition LLC—whether there is any support for changes in the management fees and general and administrative expenses of LFB Acquisition that were significantly higher in 2017 ($1.9 million and $2.8 million, respectively) than 2016 ($750,000 and $549,000, respectively) and 2018 ($707,000 and $570,000, respectively).

In fact when it comes to actually paying personal income tax Donald and Melania Trump paid US$641,951 tax in 2015, $US$750 in 2016, $US$750 in 2017, US$999,466 in 2018, US$133,445 in 2019 and US$0 in 2020, claiming a refund of US$5,468,593.

Then there is the matter of the two shell companies set up by Trump’s then personal attorney Michael Cohen in 2016, Resolution Consultants LLC and Essential Consultants LLC. The former allegedly created for the US$120,000 purchase and then suppression of a story by former Playboy Playmate Karen McDougal about her involvement with Trump and the latter created to pay US$130,000 to former adult-film star Stephanie Clifford, professionally known as Stormy Daniels.

A Delaware state judge ordered the dissolution of Essential Consultants LLC and Resolution Consultants LLC in October 2020.

It has been reported that Trump had claimed the second personal expense of $130,000 as a business expense though whether he did that in his 2016 tax returns or later I have been unable to ascertain.

It is noted that, in the three years from 2017 to 2019 Trump donated the annual US$400 million presidential salary “solely for public purposes” in order to get a back a combined total of US$1,200 million as a deduction on his tax bills, according to The Washington Post.

As for an overview of Trump’s business practices…..

To quote Page 5 of the House Committee on Ways and Means’ 20 December 2022 Final Report:

Numerous investigative reports have revealed that the former President, through the complex arrangements of his personal and business finances, has engaged in aggressive tax strategies and decades-long tax avoidance schemes, including taking a questionable $916 million deduction, using a grantor trust to control assets, manipulating tax code provisions pertaining to real estate taxes, and extensively using pass-through entities. Media reports have also revealed that he benefited from massive conservation easements, and that certain of his golf courses failed to properly account for wages paid to employees, raising questions about compliance with payroll and Social Security tax laws. As President, he took pride in “brilliantly” maneuvering the tax laws to his personal benefit. Even as he was championing the Tax Cuts and Jobs Act of 2017, the former President referred to the tax code as “riddled with loopholes” for “special interests—including myself.”

BACKGROUND

The House Committee on Ways and Means “REPORT ON THE INTERNAL REVENUE SERVICE'S MANDATORY AUDIT PROGRAM UNDER THE PRIOR ADMINISTRATION (2017-2020” Final Report of 20 December 2022 can be found at:

https://waysandmeans.house.gov/sites/democrats.waysandmeans.house.gov/files/documents/2022.12.20%20Final%20Report%20House%20Ways%20and%20Means.pdf

On 30 December 2022 the House Committee on Ways and Means released a zip file containing all Donald John Trump’s personal & business tax returns via Attachment E. Links to the full range of documents the Committee has released can be found at the bottom of this document at:

https://waysandmeans.house.gov/media-center/press-releases/ways-and-means-committee-votes-release-investigation-irs-s-mandatory