Developers slip through donation loophole as members of Labor’s Progressive Business group

Daniel Andrews says Victoria’s donation laws are the strictest in the country — but cashed-up developers can anonymously slip through a loophole by funnelling money into a fundraising arm of the Labor Party. Here’s how they’re getting away with it.

The identities of cashed-up developers who funnel thousands of dollars through a fundraising arm of the Labor Party are being kept secret, despite what Daniel Andrews says are the strictest donations laws in the country.

The reforms, which went through parliament last year, were trumpeted as an end to secretive transactions between corporate interests and political parties.

Individual donations over $1000 must now be declared and no one can donate more than $4000 each parliamentary term.

But the Herald Sun can reveal a loophole is allowing membership-based organisations, including Labor fundraising arm Progressive Business, to avoid disclosing who they have signed up — even though memberships cost more than $1000.

Corruption hearings last month revealed Ferrari-driving developer John Woodman forked out thousands of dollars to be a “platinum” member of Progressive Business.

Developer John Woodman leaves an IBAC hearing. Picture: Jake Nowakowski

Labor insiders say such deals are structured to give members a number of “tickets” to events, potentially allowing them to bypass disclosure laws.

The Victorian Electoral Commission said the identity of paid members of groups associated with political parties should not be revealed — unless their dues were used by the parties for “political expenditure” during election campaigns.

This year, Progressive Business has held eight “business engagement functions”, with a boardroom lunch featuring Deputy Premier James Merlino planned for Tuesday and an end-of-year function involving Mr Andrews and other ministers on Wednesday.

But a new real-time donations register only lists four donations to Labor this year, totalling $8500.

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Sources across the major parties said fundraising had slowed because of generous new public funding, but insiders questioned whether the changes meant political operatives were finding new ways to raise money while avoiding public disclosures.

Progressive Business describes itself as a “membership based Association that exists to provide opportunities for business to connect with the Victorian Government and Federal Opposition”.

The association — which has raised millions of dollars for Labor — did not respond to repeated requests for comment from the Herald Sun, including about whether Mr Woodman remained a paid-up member.

The Independent Broad-based Anti-corruption Commission heard Mr Woodman lavished Labor with money in the lead-up to last year’s state election in order to get access to politicians.

This included at Progressive Business events such as intimate meals with Mr Andrews at the swanky Flower Drum restaurant, revealed by the Herald Sun.

The events were described by Mr Woodman’s consultant Megan Schutz as an opportunity to ask the MPs “anything”, with briefing notes often prepared for a minister’s office.

Political parties and associated entities including Progressive Business will have their annual returns published later this month.

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