CONFLICT OF INTEREST PROVISIONS IN THE PARLIAMENTARY SERVICE ACT 1999

A Legal Analysis of Their Application to Members of the Australian Parliament Serving Foreign Interests

Document Prepared by Andrew Klein

Date: 7 August 2026

1. Introduction

The Parliamentary Service Act 1999 (Cth) establishes the legal framework for the employment and conduct of Parliamentary Service employees who support the functioning of the Australian Parliament. While the Act primarily governs employees, its provisions on conflicts of interest—particularly section 13(7) of the Code of Conduct—provide a useful framework for examining how the principle of avoiding conflicts might be applied to elected members of Parliament who are found to be serving foreign interests.

This analysis examines whether the Parliamentary Service Act, read alongside other Commonwealth legislation, provides a basis for holding parliamentarians accountable when their actions appear to prioritise the interests of a foreign state over their duties to Australia.

2. The Parliamentary Service Act 1999: Key Provisions

2.1 The Parliamentary Service Code of Conduct

Section 13 of the Act sets out the Parliamentary Service Code of Conduct, which binds Parliamentary Service employees. Key provisions include:

(7) A Parliamentary Service employee must:

(a) take reasonable steps to avoid any conflict of interest (real or apparent) in connection with the employee’s Parliamentary Service employment; and

(b) disclose details of any material personal interest of the employee in connection with the employee’s Parliamentary Service employment. 

2.2 Sanctions for Breaches

Section 15 of the Act provides that a Secretary may impose sanctions on an employee found to have breached the Code of Conduct, including:

· Termination of employment

· Reduction in classification

· Re-assignment of duties

· Reduction in salary

· Deductions from salary, by way of fine

· A reprimand

2.3 Whistleblower Protections

Section 16 of the Act provides protection for whistleblowers who report breaches of the Code of Conduct or other unlawful conduct. This suggests that the Act contemplates the possibility of serious misconduct that warrants protection for those who expose it.

2.4 Prohibition on Patronage and Favouritism

Section 17 of the Act prohibits patronage and favouritism in the exercise of powers under the Act. This reflects a broader principle that public office should not be used for private or foreign advantage.

3. Extension to Members of Parliament

3.1 The Constitutional Framework

The Parliamentary Service Act directly applies to employees of the Parliamentary Service, not to elected members of Parliament. However, the principles embedded in the Act reflect broader expectations of public office that apply to parliamentarians.

Section 44 of the Constitution disqualifies persons with certain interests from sitting in Parliament, including those with “any direct or indirect pecuniary interest in any agreement with the Public Service of the Commonwealth” . This provision has been used to remove parliamentarians who failed to disclose dual citizenship or financial interests.

3.2 The PGPA Act

The Public Governance, Performance and Accountability Act 2013 (PGPA Act) imposes additional obligations on Commonwealth officials to disclose material personal interests. As one legal analysis notes, failure to disclose can result in employment sanctions. While this Act primarily applies to officials, its disclosure obligations reflect the broader principle that public office carries a duty of transparency.

3.3 Foreign Donations and Influence

The Commonwealth Electoral Act 1918 bans foreign donations of more than $1,000 to political entities, including registered political parties, candidates, and Senate groups. This reflects a recognition that foreign interests should not be able to influence Australian political processes through financial means.

The existence of this prohibition raises the question: if foreign money is banned, should foreign influence through other means—such as advocacy for a foreign state’s interests—also be subject to scrutiny?

4. Applying the Framework: Serving Foreign Interests

The Parliamentary Service Act provides a model for how conflicts of interest should be addressed. Key questions that arise when considering whether a parliamentarian is serving foreign interests include:

Question Relevant Principle

Has the parliamentarian taken reasonable steps to avoid a conflict of interest? Section 13(7)(a)

Has the parliamentarian disclosed any material personal interest? Section 13(7)(b)

Is there a real or apparent conflict of interest? Section 13(7)(a)

Is the parliamentarian using their position for foreign advantage? Section 17 (patronage and favouritism)

Has the parliamentarian failed to maintain appropriate confidentiality? Section 13 (implied)

5. Findings

While the Parliamentary Service Act does not directly govern the conduct of elected members of Parliament, it establishes a clear framework for how conflicts of interest should be addressed in the parliamentary context. The principles embedded in the Act—particularly the requirement to avoid conflicts of interest and to disclose material personal interests—provide a benchmark against which the conduct of parliamentarians can be assessed.

The Act demonstrates that:

1. Conflicts of interest are a serious matter that warrant disclosure and avoidance.

2. Breaches can result in significant sanctions, including termination of employment.

3. The principle of transparency in public office is a fundamental value.

4. Foreign influence in Australian political processes is a recognised concern.

When a parliamentarian is found to be serving the interests of a foreign state over their duty to Australia, the principles of the Parliamentary Service Act suggest that such conduct is incompatible with the proper exercise of public office.

6. References

1. Parliamentary Service Act 1999 (Cth) s 13 

2. Parliamentary Service Act 1999 (Cth) s 15 

3. Parliamentary Service Act 1999 (Cth) s 17 

4. Public Governance, Performance and Accountability Act 2013 (Cth) 

5. Commonwealth Electoral Act 1918 (Cth) s 302D 

6. Australian Constitution s 44 

Prepared by:

Andrew Klein

August 2026

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