Department of Defence signed off on payments worth $154 million to settle two class actions brought by Richard Marles’ wife’s firm

Defence Minister Richard Marles has recused himself from two major class actions against his portfolio amid family conflict concerns.

Defence Minister Richard Marles has revealed he has recused himself from all responsibility for $150 million in class action settlements over contamination at defence bases after his wife went to work for the law firm running the multi-million dollar legal action.

The PFAS Contamination Class Action alleged that the Department of Defence negligently allowed toxic chemicals known as ‘PFAS’ to escape from defence bases and contaminate local environments. 

News.com.au can reveal for the first time that Mr Marles has now delegated all responsibility to his junior minister Matt Keogh and no longer receives briefings on the impact of “forever chemicals” and the class actions being run by Shine Lawyers.

Mr Marles made the disclosure after news.com.au raised questions about how any potential conflicts of interest were being managed. 

But it’s understood the arrangements have been secretly in place for years, ever since Mr Marles’ wife went to work at Shine Lawyers.

There is no suggestion of wrongdoing by Rachel Schutze, a respected lawyer who is the Victorian general manager for Shine Lawyers.

Richard Marles and his wife Rachel Schutze. Picture: Mark Wilson

Richard Marles’ response

The questions news.com.au raised flowed from the fact that Ms Schutze lists her employment and shareholdings in Shine Lawyers on Mr Marles’ declaration to parliament and it is well-known that Shine Lawyers is running the class actions.

“All relevant conflict of interest and ministerial code of code conduct processes have been complied with, including in consultation with the Department of Defence, to manage any real or perceived conflicts of interest, in relation to Ms Schutze’s employment with Shine Lawyers,’’ a spokeswoman for the defence minister told news.com.au

“All appropriate declarations have been made under the relevant guidelines.”

Since the Albanese Government was elected the Department of Defence signed off on payments totalling $154 Million to settle two class actions brought by the firm.

The settlements – approved in June 2023 and August 2023 – relate to thousands of landholders’ exposure to toxic PFAS chemicals around ADF bases, including in Victoria.

The first settlement, finalised in June 2023, was worth $132 million and was the second biggest settlement approved by an Australian court in that calendar year.

Register of members’ interests signed in January 2023. Picture: Supplied

Register of members’ interests signed in March 2025. Picture: Supplied

Defence Minister recuses himself from cabinet meetings involving PFAS

In addition, news.com.au has confirmed that the Deputy Prime Minister has put in place conflict of interest processes with the Department of Defence.

He does not receive briefings on matters that relate to class actions run by Shine Lawyers.

As a result, the Deputy Prime Minister is not responsible for the management of PFAS issues. This has been delegated to Minister Keogh and, prior to that, Assistant Minister Thistlethwaite.

The Deputy Prime Minister also excuses himself from cabinet meetings if there is a matter relating to PFAS or class actions involving Shine Lawyers on the agenda.

Ms Schutze’s employment and her shareholding arrangements are declared on the Deputy Prime Minister’s register of members interests.

The Deputy Prime Minister has put in place conflict of interest processes with the Department of Defence. Picture: Fiona Goodall/Getty

What the ministerial code of conduct says

The code of conduct clearly states that “ministers must have regard to the pecuniary and other private interests of members of their family, to the extent known to them, as well as their own interests, in considering whether a conflict or apparent conflict between private interests and official duty arises”.

“Ministers should encourage family members to dispose of, or not invest in, shares in companies which operate in their area of responsibility,’’ the code states.

“Where a Minister is aware of the nature of investments of family members from which they derive a beneficial interest and which might give rise to a perception of a conflict of interests, those interests should be structured so that the Minister exercises no control over the investment.”

The code of conduct for ministers. Picture: Supplied

Shine Lawyers statement on the class actions

In a statement, Shine Lawyers said that Ms Schutze, who is a shareholder, was not involved with the class action.

“Rachel Schutze is the General Manager of the Victorian personal injury practice,’’ a spokeswoman said.

According to Mr Marles’ register of interests, Ms Schutze acquired shares in Shine Justice Limited in December 2022. She also acquired additional shares in Shine Justice Limited in February 2025.

The lists her areas of expertise as “Motor Vehicle Accident”, “Workers’ Compensation”, “Public Liability”, and “Travel Accident Law”.

“Rachel is not, and has never been, part of the class actions team at Shine Lawyers,’’ a Shine spokeswoman said.

“All disclosures to the appropriate parties have been made and maintained.”

Mr Marles has delegated all responsibility to his junior minister Matt Keogh. Picture: NewsWire/ Martin Ollman

What is PFAS

According to the Shine website, from the 1970s to at least 2004, the Australian Defence Force (ADF) regularly conducted firefighting drills using a type of firefighting foam known as Aqueous Film Forming Foam. 

The foam included toxic chemicals known as ‘PFAS’.

“The PFAS Contamination Class Action alleged that the Department of Defence negligently allowed toxic chemicals known as ‘PFAS’ to escape from defence bases and contaminate local environments,’’ the website states.

“In May 2023, Shine Lawyers reached an agreement with the Department of Defence, successfully achieving justice for the residents in Bullsbrook, Townsville, Darwin, Richmond, Wagga Wagga, Wodonga and Edinburgh that were affected by PFAS contamination.”

“On 25 August 2023, the Federal Court approved the $132.7 million settlement and distribution scheme which determined how compensation is distributed to members of this class action. This settlement administration of this class action has now concluded.”

Shine lawyers said that Ms Schutze, who is a shareholder, was not involved with the class action. Picture: NewsWire / Glenn Campbell

History of class actions

Across these two Defence Department settlements, Shine Lawyers received at least $20 million in fees.

Since the Albanese Government was elected in June 2022, the Commonwealth has signed off settlements worth more than $400 million in four class actions brought by Shine Lawyers, including more than $50 million in fees.

In June 2023, the Federal Court approved a $22 million settlement in a class action brought on behalf of an Indigenous community whose land was allegedly contaminated by military fighting foam from a base in Jervis Bay in New South Wales.

The settlement included $5 million in legal costs for Shine.

Mr Marles shared this Facebook photo in 2019, writing he had spent the day with “Meryl Swanson MP, Penny Sharpe MLC and Kate Washington MP dealing with the difficult issues of PFAS around the Williamtown airfield”. Picture: Facebook

Then, in August 2023, the Federal Court approved a $132 million settlement in a class action brought by Shine on behalf of thousands of Australians exposed to toxic chemicals around ADF bases, including in Victoria. 

The settlement included almost $17 million in costs for Shine. 

In April 2023, the Supreme Court of New South Wales approved a $50.45 million settlement in a class action brought by Shine on behalf of family members and deceased estates connected to the Stolen Generations. The settlement included $11 million in fees for Shine.

In September 2024, the Commonwealth reached a $202 million settlement with Shine Lawyers in a class action brought over Stolen Wages. 

The settlement – which is still awaiting final approval – included $24.5 million in fees for Shine. Federal Court Chief Justice Debra Mortimer described Shine’s proposed fees as “eye-watering”.

On their website, Shine continues to invite expressions of interest from potential claimants affected by PFAS contamination from ADF bases, including two bases located in Victoria.