An extensive review of 20 of Australia’s largest and most influential trade associations that assesses and compares the size, membership, political activities and members’ services offered by each association, and finds that there is tremendous variety in the types and scale of trade association activity.

The report finds company memberships in these associations may not be to the benefit of shareholders, the ability of trade associations to raise large sums for political campaigns represents a potential democratic risk and most trade associations play little apparent role in self-regulation. The report recommends greater transparency on how these organisations spend members’ money and their relationships with politicians. However, recent failures of trade association lobbying suggests that their influence may be waning. 

Recommendations

• Require trade associations to disclose their members and how much each member contributed. 
• Require publicly-listed companies to secure shareholder approval of political donations and memberships of trade associations. 
• Remove tax deductibility for lobbying and political campaigning of trade associations.
• Publish ministers’ diaries and regulating stricter donation disclosure laws.
• Better regulation for truth in political advertising .