Date posted: 21/02/2017 3 min read

Australia you have a transparency problem

Paul M Southwick CA offers his view on the five things Australia should do to improve its sliding transparency rating

In brief

  • Cultural change is by far the hardest medicine to take, but also the most effective
  • Australia desperately needs a system that encourages and rewards whistleblowers
  • Australia’s watchdogs are all too often wrong-footed – or asleep

In Transparency International’s 2016 Corruption Perceptions Index, Australia ranked 13th.

Australia’s score in this most recent ranking, published in January, saw it drop to 79 out of 100, down from 85 out of 100 in 2012. The least corrupt countries scored 90 and the most corrupt (Somalia) scored 10.

Transparency is a key component of investment and interest-related decisions. Internationally, the competition for capital is intense. Transparency also plays a key role in attracting tourists and, in the education sector, convincing overseas parents that Australia is a good place to send their children.

With the English speaking UK, Singapore and Canada all rating ahead of Australia, a further slip would bite the nation economically. Here are some things Australia should do to improve its transparency rating.

1. Cultural change

In some countries a “decent person test” means once transgressed, it is impossible to return. In Australia, the ubiquitous “fair go” principle, which has many redeeming features, can also work to allow wrongdoers to rise again and to repeat misdeeds.

In Australia, “dobbing someone in” is considered a sin, whereas in higher ranked countries, the emphasis is on ejecting and rejecting forever those who transgress.

Cultural change is by far the hardest medicine to take, but also the most effective, as Singapore (ranked number seven) proved.

2. Politicians leading by example

Recent examples of, “do as I say, not as I do” illustrate poor political leadership.

The aggressive recent attacks on Australia’s Greens’ Senator, Sarah Hanson-Young, Save the Children aid workers and Human Rights Commission President Gillian Triggs, over immigration detention centres, were brutal. In each case, the government was wrong, but the damage was done.

Tax legislation in Australia prohibits workers from deducting the cost of travel to work. Politicians not only get their travel paid for by taxpayer, but have been widely rorting these generous allowances.

Unless the Australian federal government breaks bad habits, Australia could see a Brexit/Trump electoral response at home.

Federal Attorney-General George Brandis wanted the right to spy on anyone, at any time, without a warrant, but is fighting (with taxpayers’ money) to prevent his own work diary being released under freedom of information requests. Australia was even accused of spying on its near neighbours in trade negotiations.

The government has also criminalised doctors and journalists transparently reporting on misdeeds in detention entrees and wants to be able to force journalists to reveal their sources.

Unless the Australian federal government breaks bad habits, Australia could see a Brexit/Trump electoral response at home.

3. Reward and protect whistleblowers

In Australia, whistleblowers are fired, have careers destroyed, are subject to court action and end up penniless. In the US, whistleblowers are protected and rewarded.

Australia desperately needs a system that encourages and rewards whistleblowers. The more organisations know employees are not scared to report wrongdoing, the less likely they are to permeate misdeeds.  

4. Institutional front feet

Whether it’s ASIC ignoring warnings about financial planning skulduggery in the banks, unions tolerating criminals in their midst, or international tax and money laundering loopholes being closed after the horse has bolted, Australia’s watchdogs are all too often wrong-footed – or asleep.

By way of example: Acuity reported in its February/March print magazine on financial services sector reforms that will allow existing financial planners until 2024 to transit to new arrangements.

Australia needs operational change – including executive incentives to legislate and act early – in order to stay several steps ahead of corrupters.

5. Trans-Tasman merger

For years, Kiwis flocked to “the lucky country” at rates of up to 50,000 per annum. That has turned around recently and net immigration is now positive in the other direction.

Previously it was said that New Zealand would be much better off merging with and becoming a state of its larger, dominion sibling.

Perhaps the tide has turned and Australia should become a province of New Zealand – which is ranked first, equal with Norway, on the Transparency International’s 2016 CorruptionPerceptions Index.

At the very least, Australia could consider adopting Aotearoa’s seemingly much more agile and accountable “no states, single house of parliament” form of government.