Labor demands answers over Business SA election breach

Labor will seek a ‘please explain’ over a failure by a peak business body to meet reporting rules during the SA election.

Business SA chief executive Nigel McBride.

The ALP will this week send a “please explain” to the Electoral Commission of South Australia over a failure by the state’s peak business body to meet strict ­reporting rules during the state election campaign.

It is understood Labor state secretary Reggie Martin will write to ECSA to ask why Business SA failed to meet all of its ­reporting obligations before the March 17 poll, which delivered the Liberals government in South Australia for the first time in 16 years.

ECSA, which ran last month’s state election, requires ­additional return lodgement ­obligations for third parties, such as Business SA. In the year of a general election, registered third parties must lodge a return for the month of January by February 5. Following this are high-frequency lodgements — returns that must be lodged for every seven-day period until 30 days after polling day.

These returns must be lodged within five days of the end of each seven-day period, and ­include information such as total outstanding debt and income. Failing to lodge a return within the legislated timeframe is an ­offence, with maximum penalties of up to $10,000.

Despite ECSA having offered briefings to potential third ­parties as early as January, Business SA yesterday claimed it was ­unaware of its obligations.

According to the ECSA website, the commission’s compliance officer, Carol Vu, lodged the first return for Business SA — registered as the South Australian Employers Chamber of Commerce and Industry Inc — on March 8. Business SA chief executive Nigel McBride lodged a further five returns on the same day, just nine days before polling day. “We only became aware of the specifics of the lodgement ­requirements approximately two weeks before the first of the returns were lodged,” Mr McBride said yesterday.

“As soon as we became aware of the requirements we worked collaboratively with ECSA to get the returns lodged as soon as possible.”

According to the latest return, lodged last week by Mr McBride, the member-based organisation had debts of $4.84 million as of March 21. Mr McBride said the level of debt was not linked to Business SA’s multi-million-dollar legal row with the Australian Taxation Office in August, when it failed to prove it was eligible for charity status.

The Supreme Court found Business SA failed to prove that its dominant purpose was the ­advancement of trade and commerce, and hence was charitable, calling into question its role as a peak business body.

BankSA is owed $3.925m for a property loan, while the ATO ($412,797), Revenue SA ($56,295), and Leedwell Asset Management ($68,820) are also listed as creditors. Creative ­agency KWP, which directed Business SA’s election campaign, is owed $160,233.