Allan Faces Leadership Pressure After Integrity, Donations Disputes

Victorian Premier Jacinta Allan faced renewed leadership scrutiny this week after her government moved on integrity reforms, rewrote political donation rules following a court ruling, and defended a newly appointed minister over controversial character references.

The developments come months before Victoria’s November state election and have prompted speculation among some Labor Members of Parliament about whether Allan has handled a series of politically damaging issues quickly enough.

Allan’s office has sought to contain the fallout while pushing ahead with legislative changes that the government says are needed to strengthen oversight and restore certainty in election funding rules.

IBAC powers and timing questions

On Monday, Allan responded to a parliamentary inquiry by agreeing to expand powers for the state’s anti-corruption body, the Independent Broad-based Anti-corruption Commission (IBAC). The changes include “follow-the-dollar” powers to investigate the spending of public money by private contractors and subcontractors, and a broader definition of corrupt conduct that would make it easier to launch investigations and hold public hearings.

The reforms align with long-standing calls from IBAC, but some Labor MPs questioned the timing, arguing the government should have acted earlier. The scrutiny intensified after a report suggested union corruption may have cost taxpayers up to A$15 billion.

If Labor wins the November election, the reforms are not expected to be legislated until late 2027, according to the report. The delayed timetable has become part of the political criticism directed at the government’s handling of integrity issues.

Donation laws and minister’s character references

Allan also faced pressure over changes to Victoria’s political donation laws after a High Court decision in April struck down part of the Electoral Act, removing the previous cap on donations and disclosure requirements.

Her government negotiated new legislation with the Greens and crossbench MPs that would impose a A$7,500 donation cap per donor over four years and reintroduce disclosure requirements. The opposition criticised the bill during debate and described it as “rigged.”

Separately, newly appointed minister Luba Grigorovitch came under scrutiny after it emerged she had written 33 character references, including for people involved in assault, domestic violence and other offences. The issue prompted calls for her removal from cabinet and added to the political pressure on Allan’s leadership.

With the election approaching, attention is likely to remain on whether the government can pass and implement its integrity and electoral-law changes, and whether ministerial controversies continue to fuel internal unrest.