The Foreign Influence Transparency Scheme (FITS): when registration is required

What FITS is

The Foreign Influence Transparency Scheme Act 2018 creates a public register. This register details individuals and organisations undertaking activities for or on behalf of foreign principals. These activities relate to Australian political or governmental processes.

The Attorney-General's Department administers the Scheme. Its purpose is to increase transparency regarding foreign influence.

The Scheme does not aim to prevent foreign influence on Australian political and governmental decision-making. Rather, it seeks to make such influence more visible.

When registration is required

Registration under the Foreign Influence Transparency Scheme (FITS) is triggered when a person engages in registrable activities on behalf of a foreign principal. This means that if you are performing actions for an entity that falls under the definition of a foreign principal, and those actions meet the criteria of a registrable activity, registration is mandatory.

The definition of foreign principal is broad and encompasses several categories. These include foreign governments, foreign political organisations, foreign government-related entities, and foreign government-related individuals. Understanding whether an entity you are acting for falls within one of these categories is crucial for determining registration obligations.

Registrable activities are specifically defined and include, but are not limited to, parliamentary lobbying, general political lobbying, communications activity related to political or governmental processes, disbursement activity, and former Cabinet-minister activity. The specifics of what constitutes each activity are subject to detailed rules.

The public register and reporting

The Foreign Influence Transparency Scheme requires registrants to maintain an active registration and submit periodic reports. These reports are a key component of the Scheme’s accountability.

Information provided by registrants is made publicly available on the Attorney-General's Department website. This public register is intended to increase transparency regarding foreign influence activities occurring in Australia.

Registrants are required to lodge reports at regular intervals, generally every six months. Additional reporting obligations apply during election periods, with the aim of ensuring voters can readily recognise activities undertaken by entities registered under the Scheme.

Penalties

Failure to comply with the Foreign Influence Transparency Scheme (FITS) carries substantial consequences. Offences relating to registration, the accuracy of information provided, and the preservation of required records can result in significant criminal penalties.

The most serious offences under the Scheme can attract imprisonment for up to 5 years, alongside substantial fines. penalty estimator provides a tool to assist in understanding potential penalties.

The Attorney-General has the power to compel information from individuals or entities reasonably suspected of not being registered. This can occur through the issuance of transparency notices, requiring the provision of specific details.