A whistleblower rewards system would empower regulators to reveal and prosecute corporate and white-collar criminal behaviour and create a more competitive and scrupulous economy in Australia, according to this discussion paper. It draws on the success of similar systems overseas to propose a scheme funded by fines for offenders.

The authors argue that the 20 years since the Repayment of Gains Unlawfully Earned (ROGUE) system was proposed, have shown both the pervasiveness of white-collar crime and the effectiveness of whistleblower rewards systems. They argue that a whistleblower rewards system would provide regulators with a new and effective tool in reducing white-collar crime across Australia. 

Comparable schemes operate in the United Kingdom and Canada as well as in the highly regulated US market. For example, the Internal Revenue Service (IRS) has a system that awards whistleblowers with 15-30% of the proceeds collected as the result of a disclosure. Between 2007 to 2020 whistleblowers received over US$1 billion (nearly AU$1.4 billion) in rewards, and their disclosures resulted in the recovery of over US$5.9 billion (over AU$8.2 billion)

The Australian context

• Although Australia does not currently incentivise whistleblowing, it does have a record of providing rewards for information on serious crimes. For instance, the Australian Federal Police offers rewards of up to $1,000 for information that leads to an arrest.
• Three in five Australians support a whistleblower rewards scheme.