NSW One Nation claimed $21,000 electoral expense after loaning money from other divisions

One Nation has claimed tens of thousands of dollars from NSW taxpayers for effectively loaning money to itself during the 2019 state election campaign.

One Nation has claimed tens of thousands of dollars from NSW taxpayers for effectively loaning money to itself, borrowing funds from its federal and Queensland divisions to pay for the 2019 NSW election campaign.

One Nation was paid the money by taking advantage of NSW electoral funding laws which reimburse parties for the interest paid on borrowed money.

One Nation NSW party took out almost $700,000 in loans from the party’s federal and Queensland branches in the 2018-19 reporting period election, and each charged an interest rate of 12.7 per cent.

The interest charged on those loans, considered to be an “electoral expense” and reimbursed by the taxpayer, came to almost $21,000, according to published disclosures.

The party has also been reimbursed thousands of dollars for interest paid on money borrowed from One Nation’s federal Queensland divisions since the 2019 election.

The 12.7 per cent interest rate, which was the rate set by the Electoral Commission for unsecured loans at the time, was much higher than the interest major parties paid on money they borrowed from banks.

A One Nation volunteer adjusts cardboard cutouts of One Nation leader Pauline Hanson at a pre-polling station near Brisbane. Picture: AAP Image/Mick Tsikas

Before the 2019 election, Labor took out a $1.5 million loan at a 7.93 per cent interest rate and the Liberal party took out a $4 million loan.

The revelation that NSW One Nation was reimbursed thousands of dollars for interest paid to the party’s other divisions has raised questions about whether the process should be allowed.

“It might be legal but it’s pretty offensive to see the public paying off internal loans within One Nation,” Greens MP David Shoebridge said.

“If One Nation wants to move money around between its divisions then, provided they comply with disclosure laws, they can go for their life but that should never be subsidised by tax payers.

He said One Nation should pay the money back.

It comes after The Courier Mail reported One Nation Adviser James Ashby suggesting the party could “make some money” in the 2017 Queensland election. At the time, he said the comments were just “brainstorming”.

“There is no way of profiteering from an election,” he was reported as saying.

One Nation adviser James Ashby (left) came under fire for comments made during the 2017 Queensland election campaign. Picture: AAP Image/Dan Peled

Parliament’s Joint Committee on Electoral Matters is now considering whether to look at whether parties should be allowed to continue the practice.

“We’re doing an inquiry into third party funding and that could be something we look at as part of our inquiry,” committee chair and Liberal MP Lee Evans said.

One Nation’s NSW State Director Dan Connor said the fact that the party raised money by borrowing funds from other One Nation divisions was “old” and “canvassed during the 2019 election campaign”.

“We have at all times complied with the funding laws of the NSW Electoral Commission,” Mr Connor said.

In 2019, a party spokeswoman told The Guardian that there was “no financial benefit” to borrowing money from other party divisions.

“Interest that is electoral expenditure for a State election may be claimed from the Election Campaigns Fund from eligible State registered parties or candidates,” the NSWEC said.