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Marriage breakdown lands political lobbyist Michael Kauter in custody

The breakdown of a marriage and claims over the matrimonial finances of a political spinner and an RPA renal specialist, who once owned a $9.5m Mosman home together, has landed the lobbyist in custody.

Political lobbyist Michael Kauter, left, has been arrested overnight charged with breaching an apprehended domestic violence order involving his husband, kidney transplant specialist Professor David Gracey. Picture: Facebook
Political lobbyist Michael Kauter, left, has been arrested overnight charged with breaching an apprehended domestic violence order involving his husband, kidney transplant specialist Professor David Gracey. Picture: Facebook

The breakdown of a marriage and claims over the matrimonial finances of a political spinner and an RPA renal specialist, who once owned a $9.5m Mosman home together, has landed the lobbyist in custody, after he allegedly breached an apprehended violence order set the day beforehand.

Former senior political adviser in the Australian government Michael Kauter was in handcuffs as he appeared on screen at the Downing Centre Local Court on Wednesday.

Mr Kauter, Chairman and CEO of boutique government affairs advisory Strategic Political Counsel and former deputy director of the Nationals, was charged a day earlier with destroying or damaging property related to the glass on a picture frame.

At the same time, an AVO application was taken out on behalf of his ex-partner David Gracey, a senior specialist in nephrology.

On Wednesday, Mr Kauter faced court for allegedly breaching a condition of the AVO when he sent a text message to Professor Gracey.

Michael Kauter. Picture: Facebook
Michael Kauter. Picture: Facebook

His barrister Daniel Grippi claimed Professor Gracey’s credibility would be a live issue in the trial phase, including his “motivation to lie” to extract a larger financial settlement, and that it somewhat explained the deterioration of their relationship.

The pair had been together for about 12 years, and married for almost nine.

Mr Kauter had already left their Mosman home, and told the court he would live in Sydney’s east after he was granted bail by Local Court Magistrate Margaret Quinn, who accepted there was almost no chance of a custodial sentence and that the original charge was non-violent. She also noted his clean record.

This was despite the prosecution opposing the bail application, saying there were “compliance” concerns since the AVO was only put in place on Tuesday.

Mr Grippi said some of the facts related to the destroy property charge were disputed.

Kidney transplant specialist David Gracey and prominent Sydney lobbyist Michael Kauter. Picture: NSW Real Estate.
Kidney transplant specialist David Gracey and prominent Sydney lobbyist Michael Kauter. Picture: NSW Real Estate.

Magistrate Quinn gave Mr Kauter a light dressing down, telling him that if he continued on this path, he would end up in custody, and that he was “humiliating himself ... by putting all that out there”.

She added that the breakdown of relationships was very common, and it often caused people to behave in ways that caused them “difficulties”.

When asked to explain himself, Mr Kauter told the court, “Can I be frankly honest, I was at my sister’s place and I don’t remember doing it at all”, referring to the text message, before Magistrate Quinn cut him off.

Mr Kauter, also a key lobbyist for the tobacco industry, and Professor Gracey sold their Woollahra pad in 2022 for a 110-year old historic home in Mosman for $9.5 million.

It was previously reported that Mr Kauter’s company had donated $30,000 to the One Nation Party in six months over 2018 and 2019.

Joanna Panagopoulos

Joanna started her career as a cadet at News Corp’s local newspaper network, reporting mostly on crime and courts across Sydney's suburbs. She then worked as a court reporter for the News Wire before joining The Australian’s youth-focused publication The Oz.

Original URL: https://www.theaustralian.com.au/nation/marriage-breakdown-lands-political-lobbyist-in-custody/news-story/7e406545763329c1e2366ceeefd767b7