Ian Goodenough (Moore, Liberal Party) Share this | Hansard source

In supporting the Crimes Legislation Amendment (Unexplained Wealth and Other Measures) Bill 2014, by way of background I note that the majority of the amendments in it were previously included in the Crimes Legislation Amendment Bill 2012, which was introduced into the House of Representatives on 28 November 2012 and subsequently into the Senate on 6 February 2013—but which lapsed at the end of the 43rd Parliament. The main amendments in the current 2014 bill which were not included in the 2012 bill are the insertion of an additional objective of undermining the profitability of criminal enterprises into the Proceeds of Crime Act 2002; the removal of the requirement for authorised officers to meet an evidence threshold test for a preliminary unexplained wealth order where the evidence threshold test has already been met; clarification that a court may make an unexplained wealth order even if the person to whom the order relates failed to appear as required by a preliminary unexplained wealth order; and the allowance of information obtained using coercive powers under the act to be shared with state and foreign law enforcement authorities for the purposes of proceeds of crime investigations and litigation.

Organised crime—and its links to terrorism—is a major issue facing our nation. Transnational organised crime globally was estimated to have generated US$870 million in illicit profits in 2009. The Australian Crime Commission conservatively estimates organised crime to cost Australia in the order of $15 billion annually. Australia is inextricably linked to international organised crime through international financial transfers and the flow of illicit goods and persons into our nation. Australia's National Security Strategy, released in January 2013, lists organised crime as one of the seven key national security risks. Organised crime has capitalised on globalisation and the rapid technological development of the internet, enabling overseas based criminals to target Australia through cross-border links, commerce and trade, and the funding of terrorist organisations.

Organised crime undermines the very integrity of Australia's financial and taxation systems. It creates inequity by shifting the tax burden onto legitimate and law-abiding citizens and businesses. No suburb or locality in Australia is spared from the scourge of organised crime. In my electorate there was an attempt last year by an outlaw motorcycle gang to establish a new chapter and clubhouse. At the time, whilst serving on the Wanneroo City Council, I moved to reject the development application on planning grounds. The police district superintendent, Charlie Carver, made a presentation to council with evidence that the bikie gang was involved in the illicit manufacture and distribution of drugs, as well as standover tactics. Police raids in the area have uncovered several kilograms of drugs and precursor chemicals, as well as a substantial amount of cash and illegal weapons. This represents only one example of organised crime operating in a suburban environment.

The coalition government is serious about targeting organised crime and minimising its spread by implementing a strict regime of border protection and law enforcement, and by introducing unexplained wealth legislation such as this bill, which is designed to target and confiscate the wealth of senior organised crime figures who profit from crime. By confiscating illegally gained wealth, the government is removing the incentive for the commission of crime.

The Crimes Legislation Amendment (Organised Crime and Other Measures) Act 2012 provides for three types of orders relating to unexplained wealth. Firstly, it provides for unexplained wealth restraining orders, which restrict a person's ability to dispose of or deal with property. Secondly, it provides for preliminary orders, which require a person to attend court for the purpose of enabling the court to decide whether to make an unexplained wealth order. Thirdly, it provides for unexplained wealth orders, which require a person to pay the amount determined by the court to be the difference between the person's total wealth and that which has been legitimately acquired.

Unlike existing confiscation orders, unexplained wealth orders will not require proof of a link to the commission of a specific offence, which may be extremely difficult to prove in an organised crime context. Rather, the court is required to be satisfied that there are reasonable grounds to suspect that the person has committed an offence against a law of the Commonwealth, a foreign indictable offence or a state offence that has a federal aspect, or that part of the person's wealth was derived from an offence against a law of the Commonwealth, a foreign indictable offence or a state offence that has a federal aspect. In that sense, the new measures represent a significant shift in law enforcement strategy.

In response to the growing threat of organised crime syndicates infiltrating Australian society, the government is taking steps to ensure that the Australian Crime Commission and other relevant law enforcement agencies have appropriate surveillance and investigative powers. Information sharing between law enforcement agencies and the Australian Taxation Office will also be improved. The government will target organised crime by confiscating the profits and assets of criminal syndicates—thereby undermining their business model—through the development of a national unexplained wealth scheme, mandatory freezing orders and international agreements relating to unexplained wealth.

The Australian Crime Commission's organised crime threat assessment 2012 identified six distinct illicit activities as being key enablers of organised crime, namely money laundering, cybercrime and technology enabled crime, identity crime, exploitation of business structures, corruption and violence. According to a 2013 Australian Crime Commission report, organised crime groups in Australia are currently using sophisticated networks of businesses, proprietary companies and trusts to enable a range of organised crime and regulatory offences. Professional advisers have a significant role in helping organised crime exploit business structures by drawing on their specialist skills, knowledge, expertise and resources.

The involvement of organised crime in the importation, manufacture and distribution of illicit drugs in Australia disrupts lives, burdens the health system and causes deaths. A long list of drugs includes methylamphetamine, precursor chemicals for illegal drug manufacture in clandestine laboratories, cocaine, heroin, MDMA, cannabis, opioid analgesics, benzodiazepines, performance- and image-enhancing drugs, to name a few. Confiscating the proceeds of drug dealers in our suburbs and communities is a powerful way to remove the incentive to break the law.

Credit card fraud is on the increase. Between 2010 and 2012 there was a 26 per cent increase in fraud recorded against Australian-issued credit cards, costing consumers and the banking industry $262 million. Similarly, Australia's financial and banking systems are also being targeted by fraud schemes involving mass marketing, investments, advance fees, superannuation, securities, the share market, mortgages and loans.

Crime syndicates are also involved in revenue-generating activities such as intellectual property crime through the manufacture, importation and distribution of counterfeit goods, and software, music and video piracy. The black market trade costs industry billions of dollars in lost royalties which, in turn, results in forgone taxation revenue for government.

Firearm trafficking by crime gangs undermines the integrity of our firearm-licensing system. Weapons smuggled across borders and sold to criminals are a risk to public safety. The misuse of firearms creates a negative perception of legitimate firearm use by sporting shooters and disadvantages law-abiding firearm owners.

Organised crime syndicates are involved in human trafficking and maritime people-smuggling. Illegal immigrants in Australia without the proper class of visa are being exploited by crime syndicates as cheap labour. I refer to a recent interagency police raid on a rural property in Carabooda, near the border of my electorate, where it was reported in the media that approximately 170 foreign nationals allegedly working without visas were detained, several hundred thousand dollars in cash was confiscated, several kilograms of illicit drugs were seized and 21 unlicensed firearms were impounded. In addition, there are credible reports that the syndicate allegedly offered illegal labour hire to neighbouring farms. The entire operation would have generated substantial profits, which this legislation would seek to confiscate.

The problem of international organised crime infiltrating Australia is a serious threat to our community and the integrity of our financial and taxation system. Our vast borders and the relatively relaxed nature of our current systems enable the international flow of illicit funds and money-laundering schemes from nations with less rigorous forms of governance. It is, therefore, essential for the government to take measures to address the situation. The International Crime Cooperation Central Authority in the Attorney-General's Department liaises with international law enforcement and justice partners in formal government-to-government requests for mutual assistance and extradition. Australian agencies must cooperate by obtaining and providing evidence to assist with foreign investigations and prosecutions as well as seeking coercive action to support foreign investigations and prosecutions. By using multi-agency task forces to combine and coordinate a range of Commonwealth, state and territory capabilities, a more effective response to organised crime can be provided.

In summary, the bill seeks to provide a strong deterrent to those involved in organised crime by targeting the proceeds of crime and unexplained wealth. Wealth that cannot be demonstrated to have been acquired by legitimate means will be forfeited. This is part of the coalition government's strong stance on border protection and law enforcement. We must never allow organised crime syndicates to gain a foothold in Australian society. I commend the bill to the House.

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