Foreign Influence Transparency Scheme Commencement Proclamation 2018

Overview

The Foreign Influence Transparency Scheme Act 2018 was enacted to establish a legislative framework aimed at enhancing transparency around foreign influence activities in Australia. The Act was introduced to address the growing concern over the potential impact of foreign interference on Australian democracy, public policy, and national security. The Act seeks to ensure that entities engaging in foreign influence activities are transparent about their activities and intentions, thereby protecting the integrity of Australian democracy and public institutions. The enactment of this legislation was a significant move by the Australian Parliament to safeguard the nation's interests against undue foreign influence. The policy objective is to promote transparency and accountability in relation to foreign influence activities that could affect Australia's sovereignty and national interests. The commencement of the Act was proclaimed on 10 December 2018, following the signing and sealing by the Honourable Paul de Jersey AC, Administrator of the Government of the Commonwealth of Australia, under the authority of the Federal Executive Council.

Scope and Application

The Foreign Influence Transparency Scheme Act 2018, which was brought into effect on 10 December 2018, applies to entities that are considered to be involved in 'foreign relations' activities within Australia, including but not limited to political entities, entities that provide services to political entities, and media entities. This legislation mandates the registration and disclosure of certain activities that may be influenced by foreign principals, with the aim of ensuring transparency and mitigating potential undue foreign influence in sensitive areas of Australian life. The Act applies to a broad spectrum of entities, including companies, partnerships, trusts, and unincorporated associations, provided they engage in the specified activities and meet the criteria set out in the Act. The geographical reach of the Act is national, encompassing all states and territories within Australia. However, it does not apply to the Australian Defence Force, the Australian Federal Police, the Australian Security Intelligence Organisation, the Australian Secret Intelligence Service, the Australian Border Force, the Australian Federal Police, the Australian Criminal Intelligence Commission, and the Australian Transaction Reports and Analysis Centre. The Act also provides for the establishment of a register of entities and their activities, which is open to public inspection. The application and scope of the Act may be extended or modified through subordinate legislation, allowing for adjustments to be made in response to changing circumstances or developments in foreign influence practices.

Key Provisions

The Foreign Influence Transparency Scheme Commencement Proclamation 2018 (F2018N00175) sets the commencement date of the Foreign Influence Transparency Scheme Act 2018 (the Act) as 10 December 2018. This Act aims to increase transparency around foreign influence by requiring certain entities to disclose when they engage in activities that could potentially be influenced by foreign principals. Section 3 of the Act specifies that the scheme applies to entities that fall within the definition of 'Scheme entities'. These entities include political parties, certain government employees, and others who might be susceptible to foreign influence. Under the Act, Scheme entities must comply with several obligations to ensure transparency. Section 4 outlines the requirement for these entities to notify the Registrar of the Foreign Influence Transparency Scheme (the Registrar) when they engage in a 'notifiable action'. This includes activities such as meeting a foreign government representative or participating in activities that could be influenced by a foreign principal. Additionally, Section 5 mandates that entities must maintain records of any notifiable actions and make them available for inspection by the Registrar. The Act also requires these entities to submit an annual statement to the Registrar detailing their activities that might involve foreign influence, as stipulated in Section 6. Failure to comply with the obligations set out in the Act can result in significant consequences. Section 11 of the Act specifies that entities that fail to notify the Registrar of a notifiable action or provide false or misleading information may be subject to enforcement actions. The Act provides for both civil and criminal penalties. Under Section 12, an entity can be fined up to 10,000 penalty units for each offence, while Section 13 imposes a maximum penalty of five years imprisonment for individuals who knowingly provide false or misleading information to the Registrar. These provisions ensure that there are serious repercussions for non-compliance with the Act's requirements.