Corporate lobbying is eroding our democracy

Almost two-thirds of registered lobbyists in Canberra have worked in state or federal government. This revolving door allows wealthy elites and groups to buy access that everyday Aussies can’t, and it’s eroding our democracy. Now, the Australian Democracy Network is calling for a National Lobbying Act to stop the wealthy and powerful buying major influence over policy.

Whether it’s the impossible cost of housing, rising grocery bills or climate inaction, many young Australians are left wondering why governments so often seem unable to deliver the changes people want.

Polling by Australian Democracy Network in June found around two-in-three of us believe the Albanese Government is more focused on powerful interests than ordinary people. And many believe big industries like mining, gambling and tech are benefitting from regulatory decisions at our expense.

It’s easy to dismiss these concerns as cynical or conspiratorial.

But when you examine how our government actually makes decisions, you realise the truth that underlies this sentiment – we have a two-tiered democracy where the wealthy and powerful have outsized influence. This contributes to the dwindling trust in politics.

Democracy is meant to put power in the hands of the people. Instead, across the world, multinational corporations have transformed liberal democracies into gated communities, where decisions are shaped by those with the biggest wallet and best access to decision-makers.

We need look no further than the gambling industry and the passage of last week’s compromised advertising laws to see this phenomenon of state capture in action.

In 2022, the federal government launched a parliamentary inquiry into the regulation of online gambling harm, led by the late Labor MP Peta Murphy. In a remarkable display of political consensus, the committee unanimously delivered 31 recommendations, including a phased, comprehensive ban on online gambling advertising and the creation of a national regulator.

It was evidence-based, it had cross-party support, it addressed a public health crisis that drains more than $34 billion a year from Australian households, and it was popular – four-in-five Australians support a ban on gambling ads.

But when the Albanese Government’s legislation showed up in parliament last week, the Murphy Report had been gutted. In its place was a far narrower package that was so lacking in ambition that some members of the Coalition crossed the floor to vote against their own parties’ deal with Labor.

So how did Labor’s own recommendations for popular, evidence-based reforms end with such compromised legislation? If you look at the public record, while there is much speculation about the influence of the gambling, sports and media industries, there is no smoking gun.

This is precisely the problem our new research addresses.

We get glimpses, but Australians cannot really see the influence trail shaping government decisions. We know betting giants, sporting codes and broadcasters had serious money riding on the outcome. We know these same companies donate millions to our major political parties. We even know they hire former ministers to walk the halls in Canberra.

But the influential meetings that may have led the Prime Minister to reject the consensus position of the Murphy inquiry remain hidden behind closed doors.

Now, new research by Australian Democracy Network helps to show how broken our federal lobbying rules are, and why, whether its gambling advertising or gas taxation, ordinary people are losing out to vested interests.

The problems with these rules boil down to three core elements.

First, there’s a transparency gap. We found that over half of ASX100 companies, including the likes of Qantas, Santos and Commonwealth Bank, did not appear anywhere on the register meant to capture corporate lobbying at the time of our analysis. While it’s possible they’re not lobbying, it’s most likely because the current rules only cover lobbyists working for consultant firms, not those employed directly by big corporations.

Second, there’s a well-oiled revolving door phenomenon, where former government representatives rotate out of public office and into lucrative private sector lobbying roles. Almost two-thirds of registered lobbyists in Canberra have worked in state or federal government. And while the gambling, gas, and weapons industries can afford to buy those connections, ordinary Australians cannot.

Third, there’s an echo chamber. Nearly 90% of lobbyists who worked in political offices were associated with Labor or the Coalition. As historical voting patterns fragment, a narrow class of political insiders remains central to making the decisions that shape our lives.

So, how do we fix a system that seems designed to lock us out?

There is broad expert consensus on what good reforms could look like. Australian Democracy Network is calling for a National Lobbying Act that applies to all professional lobbyists, strengthens lobbying bans for former government representatives, publishes ministerial diaries, and appoints an independent regulator backed by effective penalties.

Our political system should work for people, not the powerful. Trust in democracy depends on it.

About the author

Christian Slattery is a Senior Campaigner at the Australian Democracy Network. His work focuses on political integrity, campaign finance, donations and lobbying. Australian Democracy Network is a not-for-profit campaigning organisation committed to building a healthy democracy that works for people and the environment.