Whistleblowing in Australia: Safeguarding integrity in the private sector

Whistleblowing in Australia plays a crucial role in maintaining integrity and accountability in both the public and private sectors. A whistleblower might speak up to reveal wrongdoing or illegal actions, or to stop harm to the public or the environment.

But whistleblower protection in Australia is a complex beast, provisioned through a combination of federal and state laws, which vary in their scope and criteria. Eligibility for protection hinges on the specific provisions of the relevant legislation and the nature of the disclosure and not all disclosures are safeguarded by law in Australia.

Public perception

Australia’s whistleblowing framework is widely perceived to be lacking. 

Essential Media conducted polling on Australians’ attitudes towards whistleblowing and found support for whistleblowers and dissatisfaction with current policy: 

• More than two-thirds of respondents supported stronger protections for whistleblowers (71%)
• 68% of respondents thought that whistleblowers should not be prosecuted by the government when they speak up in the public interest 
• A majority of respondents agreed that whistleblowers made Australia a better place (64%)

The whistleblowing landscape in Australia

Navigating the complex landscape of whistleblower protection in Australia involves understanding a diverse array of state and federal laws that apply across public, private, and not-for-profit sectors. Identifying the applicable scheme and meeting the qualifying criteria for protection can pose significant challenges.

The legal framework for private sector whistleblowing in Australia is primarily governed by the Corporations Act 2001. This legislation provides protections for whistleblowers who disclose information about misconduct or improper activities within corporations, banks, and other private entities. Specifically, the Corporations Act mandates public companies and large proprietary companies to have a whistleblower policy outlining available protections, support mechanisms, and investigation procedures.

Amendments made to the Corporations Act in recent years, such as those introduced by the Treasury Laws Amendment (Enhancing Whistleblower Protections) Act 2019, have expanded and strengthened these protections.

Additionally, the Taxation Administration Act 1953 safeguards disclosures regarding tax affairs, and the Aged Care Act 1997 provides limited protection in the aged-care sector. The National Disability Insurance Scheme also has its own protected disclosure scheme. 

Private sector whistleblower protections

Whistleblower protections under the Corporations Act extend to a wide range of individuals, including employees, contractors, suppliers, and relatives of employees. Disclosures can relate to various forms of misconduct, such as fraud, corruption, financial malpractice, and breaches of corporate governance.

Whistleblowers are safeguarded by confidentiality obligations and protection from victimisation under various schemes. These frameworks typically enforce confidentiality to shield the identity of whistleblowers and prevent any form of retaliation against them.

Whistleblower protections under the Corporations Act extend to a wide range of individuals, including employees, contractors, suppliers, and relatives of employees. Disclosures can relate to various forms of misconduct, such as fraud, corruption, financial malpractice, and breaches of corporate governance.

The Corporations Act specifically bars the unauthorised disclosure of a whistleblower’s identity or any information that could lead to their identification. 

Moreover, victimisation, which encompasses actions causing harm or threatening to do so due to the whistleblower’s disclosure (or mere suspicion of it), is strictly prohibited under the Corporations Act. This includes detrimental actions such as dismissal, demotion, unfavourable changes in job duties, discrimination, harassment, intimidation, harm (including psychological harm), or damage to property, reputation, business, or financial standing.

Reporting mechanisms for whistleblowing in Australia

Private sector organisations covered by the Corporations Act are required to establish and maintain effective internal whistleblowing policies and procedures. These policies must outline how whistleblowers can make protected disclosures, the support available to them, and how investigations into reported misconduct will be conducted. 

Avenues for disclosure can include company directors, senior managers or auditors, or designated individuals such as third-party platforms such as Report It Now®.

Additionally, whistleblowers have the option to report directly to regulatory bodies such as the Australian Securities and Investments Commission (ASIC) or the Australian Prudential Regulation Authority (APRA).

Compensation and penalties

Whistleblower compensation and penalties are critical elements of protected disclosure schemes. If a whistleblower faces harm from victimisation or breaches of confidentiality, they can seek compensation for damages. These schemes also impose significant civil and criminal penalties for such offences.

Under the Corporations Act, penalties for unauthorised disclosure of a whistleblower’s identity or victimisation can be severe. For instance, disclosing a whistleblower’s identity without authorization can result in criminal penalties, including up to six months’ imprisonment. For companies, penalties may include a maximum civil fine of AU$13,750,000, three times the benefit derived from the disclosure, or 10 percent of the company’s annual turnover (up to AU$687,500,000).

Challenges and future directions for whistleblowing in Australia

While progress has been made in enhancing whistleblower protections in the private sector, challenges certainly remain. These include ensuring that employees are aware of their rights as whistleblowers, addressing cultural barriers to reporting, and providing adequate support and safeguards for individuals who come forward with disclosures.

Looking ahead, there is a growing recognition of the importance of whistleblowing in promoting transparency, accountability, and ethical conduct within private sector organisations. Continued efforts to strengthen legal protections, raise awareness, and foster a culture that values integrity and accountability will be essential in safeguarding whistleblowers and promoting a culture of ethical behaviour in the Australian private sector.

Next steps

To minimise unethical conduct at work, it’s essential to take a united and comprehensive approach. Organisations can achieve this by involving leadership, establishing transparent codes of conduct, and promoting open communication. This strategy cultivates a workplace culture grounded in integrity and accountability, which ultimately enhances employee satisfaction and boosts overall performance.

At Report It Now®, we are dedicated to helping organisations cultivate a workplace where trust thrives, enabling them to achieve sustainable growth and success.

Contact us for a free, confidential assessment.