The federal opposition leader, Angus Taylor, has been inadvertently drawn into an Independent Commission Against Corruption (Icac) inquiry into alleged breaches of the NSW Electoral Funding Act by members of the conservative Liberal Reformers group.
Messages revealed in Icac hearing
During a hearing on Tuesday, a message from Dallas McInerney, head of the Catholic Schools Association NSW and a supporter of the Reformers, was shown to the commission. The message, sent to the Reformers group chat in March 2021, stated an intention “to shake down Angus for $10,000” while at a meeting in Canberra.
Another message, from former NSW Liberal staffer Dylan Whitelaw, allegedly read: “Dallas has told me he got the commitment from Angus the 15k injection plus a 3k monthly donation!” Whitelaw told the commission he did not recall sending the message or Taylor making any payment.
Taylor’s response
A spokesperson for Taylor said: “The Leader is not a party to the matters before the commission, nor has he been approached. Donations and fundraising activities are declared in accordance with the rules and are a matter for the Party.” It is unknown whether Taylor actually made the payments or whether they would be covered by NSW political donations laws.
Taylor does not appear as a donor on the NSW donation disclosure register for 2020–21, 2021–22 or 2022–23. His only recorded federal donation was $1,500 in 2010 to Malcolm Turnbull’s campaign.
Broader investigation
Icac is also investigating other alleged donors to the Reformers, including fugitive developer Jean Nassif (who allegedly paid $2 million to members Christian Ellis, Charles Perrottet and Jeremy Greenwood), former hotelier Michael O’Hara ($165,000), and Catholic Schools NSW (over $250,000). Some funds were allegedly paid under sham arrangements to public relations firms controlled by Ellis and Greenwood.
Whitelaw, who was employed by Catholic Schools NSW as a data processor, testified that he spent much of his time on Reformers work, such as organising events and recruiting members in the Wollondilly area. Whitelaw said Robert Assaf, a key Reformer also employed at Catholic Schools, spent an estimated 60% of his time on factional work. “Rob did very little Catholic Schools work,” Whitelaw said, calling it “a running joke.”
Political and legal implications
If Taylor’s alleged payments were made, they could be undeclared political donations or in breach of donation caps, posing serious questions for a major party leader. Internally, proof that Taylor funded one side of a factional war would be difficult for many in the party to accept. The Reformers were created to oust the Centre Right faction and seize control from the Moderates.
O’Hara, who became disillusioned by 2022, told the Reformers in his last conversation: “I may as well support the Greens or Teals, as Dominic [Perrottet] was rolled on so many issues instead of prosecuting the principles I believed he stood for.”
The inquiry continues to examine whether contributions to the Reformers, which had no formal status in the Liberal party, fall under the Electoral Funding Act. McInerney has stood down as Catholic Schools NSW CEO and is expected to give evidence later.
