u/stupid_mistake__101

The Labor Party’s decision to move against Jacinta Allan and install Ben Carroll as Victorian premier has failed to deliver a bounce in the polls, with the government’s primary support continuing to slip in the lead-up to the November state election.
A Resolve Political Monitor survey of voting intentions conducted two weeks after the leadership spill shows the Jess Wilson-led opposition in a strong electoral position. Indicative preference flows from One Nation and Labor voters are likely to deliver the Coalition a swag of seats across Melbourne’s eastern and south-eastern suburbs and in regional areas.

Labor’s primary support dropped 2 points to 25 per cent, which is the government’s worst result since its polling nadir in the lead-up to last year’s federal election. Although Carroll is significantly more popular than Allan, only 20 per cent of respondents nominated the new Labor leader as their preferred premier, a figure 4 points lower than Allan scored in her final survey as premier.
Primary support for the Coalition remains unchanged at 27 per cent – a mark 7.4 points below what the Liberal and National parties secured in their 2022 election loss. While Resolve does not publish a two-party preferred figure, a heavily skewed flow of preferences means the Coalition has opened a nominative 53-47 gap over Labor.

Pauline Hanson’s campaign launch in Melbourne for Victorian party leader Warren Pickering and their upper house candidates did little to lift support for One Nation, which improved its primary vote by 1 point to 23 per cent.
The Greens remain fixed on 12 per cent of the primary vote.

All movements in primary support were within the poll’s 3 per cent margin for error.
“The change to Ben Carroll has done nothing to boost the stocks of Labor so far, and we would have expected that by now,” Resolve founder Jim Reed said. “This really will be an uphill battle for Labor.”

A senior Labor figure was sanguine about the result, saying the party never expected Carroll to enjoy a political honeymoon. “The best we could have hoped for is people willing to listen to us again,” they said, speaking on the condition of anonymity to detail internal matters.
A worrying note for the Coalition is a 17 per cent drop in support for Wilson as preferred premier from last month’s survey. Some of the opposition leader’s previous support shifted to Pickering’s column, and the number of voters undecided on their preferred premier increased from 33 per cent to 43 per cent.

Wilson’s net approval rating firmed to 18, which is equal to her best result since becoming Liberal leader. It coincides with the opposition’s shift to more positive campaigning on cost of living and community safety issues.
For Victoria’s Liberal and National parties, which have together spent 23 of the past 27 years in opposition, the most encouraging figures in the survey are the indicative flow of preferences.

Unlike opinion polls, which make assumptions about preference distributions based on past elections, Resolve asks its respondents to indicate their top five primary voting preferences. The results of this survey show that in three-way contests, 77 per cent of One Nation voters are planning to direct their preferences to the Coalition ahead of Labor, and 73 per cent of Labor voters say they will direct preferences to the Coalition ahead of One Nation.
If these patterns are replicated at the state election, the Coalition will disproportionately benefit from One Nation preferences in Melbourne’s eastern and south-eastern suburbs and from Labor preferences in regional areas. It also opens the possibility of the Liberal Party, rather than One Nation, winning seats in Labor’s western suburban heartland.

“The Coalition’s modest primary vote belies a stronger position than one might think,” Reed said. “Our analysis shows they are receiving around three-quarters of both the Labor and One Nation preferences, so as long as they’re in the top two in any given seat, they stand a chance.”
To form majority government, the Coalition must win 16 lower house seats in addition to the 29 it already holds. Wilson has repeatedly ruled out including any One Nation MPs in a minority Coalition government but has left open the prospect of relying on Hanson’s party for confidence and supply.

The Resolve survey is the first conducted since Allan resigned as Labor leader and Carroll was sworn in as the state’s 50th premier.
In his first two weeks in the job, Carroll announced a royal commission into the construction industry, promised to bring forward reforms to broaden the jurisdiction and strengthen the investigative powers of IBAC, attempted to reset the government’s relationship with business by delaying work-from-home legislation, and signalled a rethink on the state’s largest infrastructure project, the Suburban Rail Loop.

Last week, Allan confirmed she would retire from politics and not recontest her regional seat of Bendigo East.
The survey results show Labor’s leadership change has either contributed to or coincided with a greater sense of optimism across the state. At the same time, many voters appear to be reserving judgment on the nascent Carroll government. The number of uncommitted respondents is at an 18-month high.

About one-third of voters agreed that the leadership change represented a significant shift in government direction and performance, while the proportion of respondents who believe the Victorian Liberal Party is ready to government was largely unchanged on 46 per cent.
More voters are open to the idea of Labor securing an unprecedented fourth term in government since the question was posed two months ago, with 31 per cent in support and 48 per cent against.

Support for Victoria’s historic treaty with its First Peoples remains split along party lines. Fifty-eight per cent of Labor voters and 68 per cent of Greens voters are in favour of keeping it, compared with 18 per cent of Coalition voters and 17 per cent of One Nation voters.
By contrast, there is broad bipartisan support for relevant politicians to be called as witnesses and examined in public about corruption of the government’s Big Build major infrastructure program once a royal commission is established.

When asked whether politicians should be questioned publicly, 72 per cent of respondents agreed and only 3 per cent of respondents were opposed.
The terms of reference for the royal commission are expected to be announced in coming days. Carroll has repeatedly promised they will be “exhaustive”. This masthead has documented over the past two years how gangland figures have exploited CFMEU-controlled, government-funded building projects such as level crossing removals, the West Gate Tunnel, the Metro Tunnel and the North East Link.
A question about the Glasgow Commonwealth Games, originally planned to be held in regional Victoria, indicated that statewide interest in the event was similar to the FIFA World Cup, with 43 per cent of respondents watching some of the television coverage.

A new poll shows Victorian voters are set to turf out the Labor Party in Victoria, despite Premier Ben Carroll's attempts to differentiate himself from Jacinta Allan. 

The Victorian government is set to be turfed out of office despite the decision to dump Jacinta Allan.
A new poll shows Premier Ben Carroll has improved Labor’s standing among Victorians, but the party still trails the Coalition 55 to 45 on two-party-preferred.
The latest DemosAU/PremierNational poll showed the Liberal and National parties had a combined primary vote of 32 per cent, well ahead of Labor’s 23 per cent.

The poll of 1007 Victorian voters, conducted from August 6 to 11, showed support for both major parties had climbed two percentage points since June.
This suggests the decision to dump Ms Allan has helped Labor, but the party is still way below the 36.6 per cent it received at the 2022 state election.

The Coalition is also below the 34.5 per cent it received in 2022, but this was before the dramatic rise of One Nation.
Pauline Hanson’s party remains almost level with the government on 22 per cent, one point behind its June result, while the Greens fell two points to 13 per cent.
Premier Carroll still trails Opposition Leader Jess Wilson as preferred premier 34 to 43 per cent, but his net approval rating of -16 per cent is a major improvement on his predecessor’s dismal -37 per cent.

DemosAu Head of Research George Hasanakos said Labor’s change of leader had helped the party, particularly among men and voters with a TAFE qualification.

“The change in leadership has improved Labor’s standing among some voters open to Labor but who were dissatisfied with Jacinta Allan,” he said.
Premier National Director Georgia De Mestre said Mr Carroll had quickly moved to differentiate himself from Ms Allan, with his first act being to call a royal commission into the state’s corruption-plagued construction sector.
However, Mr De Mestre said Ms Wilson was continuing to increase her support ahead of the next election.
“The Opposition Leader, Jess Wilson, continues to build her brand positively with her recent statewide blitz helping her define what kind of leader she would be,” he said.
“Going by these numbers, Victorians are liking what they see. The challenge will be maintaining the momentum.”

Ben Carroll has vowed to axe a $1.6m spend on hired pot plants for rail project offices as he tries to frame himself as more money conscious than Jacinta Allan and Daniel Andrews.

Premier Ben Carroll has conceded that spending taxpayer cash on rented pot plants is a waste of money after it was revealed $1.6m was dropped on hired plants.

The admission came after former opposition leader Brad Battin and his outspoken Liberal colleague Nicole Werner were booted from a heated Question Time for using pot plants as props.

The stunt came as the Coalition unearthed a government contract showing $1.6m had been spent on “plant hire and maintenance” for workers employed in the state’s rail project offices.

Mr Carroll, who has been trying to frame himself as more money conscious than Jacinta Allan and Daniel Andrews, was quick to call out the alarming spend.

“This is not a good use of taxpayer money,” he said in a statement following Question Time.

“I’ve asked my department to end this.
“The government I lead will ensure every taxpayer dollar is spent responsibly.”

Opposition Leader Jess Wilson had gone after new Treasurer Colin Brooks over the contract, questioning why the government was splurging on pot plants.
“The Premier has said he will respect every taxpayer dollar,” she said. “If that is the case, why has Rail Projects Victoria spent $1.6m hiring and maintaining pot plants?”

Mr Brooks hit back at Ms Wilson, accusing the opposition of being loose with their facts, saying he would have to check the figure.

“There have been a few questions asked on that side of the house where you never fact check,” he said.
According to a government contract, more than $1.6m dollars was spent on “provision of plant hire and maintenance services to RPV’s offices” on Exhibition St and in Sunshine between August 2022 and July 2026.

Late last year, the Coalition also exposed an almost $200,000 contract with Foliage Indoor Plant Hire Pty Ltd for “Indoor Plant Hire and Maintenance Services” for the Suburban Rail Loop Authority.

In parliament at the time, Premier Jacinta Allan repeatedly dodged questions over the contract, claiming that the opposition did not support workers on major projects.

“They clearly do not support the workers who are building the Suburban Rail Loop, because if they did they would support them and thank them for the work they are doing,” she had said.

Former Premier Jacinta Allan is tipped to quit politics after skipping Labor’s first parliamentary caucus meeting since losing the leadership to Ben Carroll.

Former Victorian premier Jacinta Allan appears to be missing in action at parliament, with Labor sources saying she is not expected to attend this week and will likely resign in the coming days.
In the first full sitting week since the leadership spill, Labor sources have told the Herald Sun that Ms Allan did not attend Tuesday morning’s caucus meeting, where all the Labor MP’s gather before parliament, and some are predicting she will not front up at all this week.
It comes after Ms Allan stepped down as the 49th Premier of Victoria on July 28, triggered by a group of Labor MPs including meeting with her in her office to tell her she had lost caucus support.

It led to Ms Allan steeping aside and prompted a messy leadership battle where new premier Ben Carroll finally emerged.

Before the leadership meeting Ms Allan announced her resignation from the leadership, but has not publicly announced she will retire from politics and remains in parliament as the Member for Bendigo East.
Labor sources told the Herald Sun that Ms Allan has kept a low profile in the two weeks since the spill, with her resignation from parliament now widely expected.
“It’s odd that she has not announced what she plans to do,” one Labor source said.
“She has not been heard or seen about much.”

The Opposition’s Shadow Attorney-General questioned whether Ms Allan had sought leave from the Speaker, and said if not, she should be at work.

“Taxpayers pay for their Members to turn up to parliament,” he said.
“It isn’t a valid excuse for Jacinta to wag parliament because she is sour that her party rolled her. Sooking isn’t an excuse. If Jacinta Allan doesn’t want to turn up, maybe she should forgo her salary.”
Ms Allan and the Victorian government have been approached for comment.

Victorian Attorney-General Sonya Kilkenny has reversed course and now “absolutely supports” a royal commission into the building industry after previously labelling the idea “reckless”.

Victorian Attorney-General and former Jacinta Allan loyalist Sonya Kilkenny has backflipped on whether the state should hold a royal commission into the building industry, announcing she now supports the move.
Despite previously refusing to discuss establishing a royal commission into the CFMEU allegations, and even labelling calls to hold one “reckless”, Ms Kilkenny on Tuesday, in the second week since Ms Allan was turfed from the Labor leadership, now said she supported a full inquiry into the matter.
“I absolutely support a royal commission. I think it is an important matter that needs to be addressed and this is the government policy,” she said, but refused to answer questions on why her stance had changed.

New leader Premier Ben Carroll declared last month that holding a royal commission would be one of his first major policy announcements.
Mr Carroll also said he would be “happy” to appear before a royal commission into allegations of corruption on Victorian government worksites.
Ms Kilkenny has faced intense political pressure since July 2024 after it was revealed she knew about issues within the Big Build construction sites well before the issue was made public.
She has also faced accusations of misleading parliament over her referrals of the CFMEU black-ban allegations involving an Indigenous labour-hire firm on the Big Build to police.
Opposition Attorney-General James Newbury questioned Ms Kilkenny’s change in stance.
“Everything they say is a great big hoax before the State election,” he said.
“You cannot believe a single word that comes out of their mouths.”

A new poll has found nearly three-quarters of Victorians want Ben Carroll to cancel a $134,000 taxpayer-funded statue of Daniel Andrews, with more than half of Labor voters opposed to it.

Almost three-quarters of Victorians want Ben Carroll to bin a taxpayer-funded statue of Daniel Andrews, with a new poll slamming one of the former Premier’s final legacies.
Labor sources claim Mr Carroll has entertained the idea of scrapping the $134,000 sculpture, which is already being designed and built, with the Premier saying the tribute is “not a priority” for his government.
Now a new Freshwater Strategy poll has revealed overwhelming opposition to the controversial monument, with voters rejecting the tribute across virtually every political divide — including Labor’s own supporters.

The poll found 74 per cent of Victorians wanted the statue cancelled altogether, while just 19 per cent want it to proceed at taxpayers’ expense.
More than two-thirds of Victorians, or 68 per cent, opposed the monument, including more than half, or 58 per cent, who said they strongly opposed it.
Only 15 per cent of the 1,020 Victorians polled said they supported the statue.
A majority of voters from every major political grouping favoured cancelling the statue, including Labor supporters themselves.
The poll found 54 per cent of Labor voters believed the project should be abandoned altogether despite it honouring one of the party’s longest-serving premiers.
The statue was commissioned during Jacinta Allan’s time as Premier.
Ms Allan said the contract for the statue went through the normal tender and procurement processes with Meridian Sculpture, responsible for the four other bronze statues of former Victorian premiers, selected to create the monument.
The other statues of John Cain Jr, Rupert Hamer, Henry Bolte and Albert Dunstan, located outside Treasury Place, were crafted by renowned Australian artist Peter Collett.
Under a policy introduced by the Kennett government, Victorian premiers who serve more than 3,000 days in office are recognised with a statue along Treasury Place.

Jeff Kennett has vehemently opposed a statue of Mr Andrews joining the other longest serving Premiers under his own policy.
“If I was Ben Carroll, given his reduction yesterday in the size of Cabinet for the reason of cutting costs, I would cancel the statue,” he said.
“If he says he is not in the business of cancelling contracts, and the contract has been let he is in a quandary.
“If that is the case I would publicly have the completed statue melted down, and the material sold with the funds going back into consolidated revenue.
“If the melting down could be done at half time at the Grand Final, I think 100,000 would rise in their seats to applaud the occasion.
“Seventy five per cent is a pretty clear indication of where the community’s thinking is.”
Mr Carroll has refused to be drawn on whether the statue should go ahead, saying only it is “not a priority of mine”.

Opposition Leader Jess Wilson has committed to scrapping the statue if elected to government in November.
“Victoria may have a new Premier, but it’s the same corrupt Labor government,” she said.
“Ben Carroll claims to respect taxpayer money, but continues on with a $130,000 bronze statue of his old boss, Daniel Andrews.
“If I were Premier this statue would not go ahead. Victoria needs a fresh start. The only way to clean up Victoria is to change the government this November.”
Shadow Attorney-General, James Newbury, accused Mr Carroll of being “two-faced” on the issue.
“If we change the Government in November, Daniel Andrews’ god-like statue will be scrapped. Full stop, no statue,” he said.
“Ben Carroll is being two-faced with the statue and is refusing to guarantee that it will be scrapped.
“If Labor wins the election, Dan will get a statue. If we win, Dan will be on the witness list for the toughest Royal Commission in Australia’s history.”

Polling carried out for the Herald Sun in the wake of Ben Carroll becoming the state’s new Premier shows the majority of Victorians want the Suburban Rail Loop dumped with almost 70 per cent backing a rail link to Melbourne Airport.

More than half of voters believe the $34.5bn Suburban Rail Loop should be paused or junked, while an airport rail link is three times more popular than the SRL when put head to head.
New polling suggests most Victorians think the state has its infrastructure priorities wrong, with almost 70 per cent saying a Tullamarine line should be built.
When it comes to the SRL East – a 26km tunnel between Cheltenham and Box Hill – two thirds say the billions sunk into Jacinta Allan’s signature project should instead be spent on cost-of-living relief, schools or hospitals “even if it means the project does not go ahead”.

The results on infrastructure priorities in the Freshwater Strategy poll, commissioned by the Herald Sun in the wake of Ben Carroll taking over as premier last week, can be revealed amid a looming review of the SRL East – where tunnelling is due to begin within weeks.
While the review has not yet started, Mr Carroll has held his first meeting of cabinet that would mean the process could be initiated, and it is likely to put all options on the table, ­including whether contracts can be repurposed into other projects.
Industry and some Labor figures have warned behind closed doors that this would be exceedingly difficult to do given the complexity of contracts and the number of construction partners involved.

Other options a review would canvas include re-phasing the project or cutting it back, after Mr Carroll promised money invested by his government “will be invested where it delivers the greatest value for Victorians”.
As revealed by the Herald Sun on Tuesday, The Freshwater poll shows the Liberal and Nationals coalition is on track to defeat Labor at the ­November election, and that One Nation still commands more than a fifth of voter support despite having no policy platform in Victoria.

It showed that a rail link to Tullamarine remained popular with 68 per cent of people, and was supported most strongly by Labor voters (77 per cent).
When put head to head with the SRL, 60 per cent picked airport rail, compared with 18 per cent who nominated the SRL – the same number that opted for “neither”.

The SRL is due to open in 2035 and has had almost $17bn in contracts inked in what ­insiders say locks the state into the most expensive infrastructure project in history.
The poll shows 37 per cent of people believe the SRL should continue to be built as planned, but 55 per cent are against it – including 35 per cent who say it should be paused for review and about one in five who think it should be cancelled.
Mr Carroll, who grew up in Airport West and holds the electorate of Niddrie, which takes in land earmarked for a rail line and station, is a passionate supporter of an airport rail link, which was shelved by Daniel Andrews in 2023 amid a dispute over an airport station location.

Insiders say that a political decision was made to prioritise the SRL East, which would have six stations along the 26km route including at Monash and Deakin universities, despite the airport project’s popularity.
Support for the SRL within Labor is often split among geographic lines.
Those in the booming northern and western regions of Melbourne have been the most critical.

Exclusive polling commissioned by the Herald Sun and taken in the days immediately after Ben Carroll toppled Jacinta Allan as Premier has provided an early read on the leadership change. Full details here.

Labor remains on track to lose November’s state election despite a change of leader and new polling showing its first political bounce in months.
The exclusive Freshwater Strategy poll – commissioned by the Herald Sun and taken in the days immediately after last week’s leadership coup that saw Ben Carroll replace Jacinta Allan as premier – shows the change has arrested Labor’s slide, but tips the Coalition to win government for the first time since 2010.
Labor’s primary vote lifted two percentage points since June to 25 per cent, while the Coalition climbed three points to 30 per cent.

Despite shaving three points from its primary vote, One Nation remains a viable third option for voters at 22 per cent, shaping the election as a genuine three-way contest.
On a two-party preferred basis, the Coalition remains in front 52 to 48, with Labor closing the gap by one point since June.
The poll of 1020 Victorian voters between July 31 and August 3 was conducted in the days after last week’s coup that saw Ms Allan resign as premier after almost three years in the job.

More than eight in 10 Victorians knew Labor had changed leaders, underlining how quickly the political reset has registered with voters.
While most said the leadership change would make no difference to their vote, those who said it would make them more likely to consider Labor outnumbered those pushed away by the move 26 per cent to 12 per cent.
However, voters are still not convinced by Mr Carroll, with just 27 per cent saying they trust the new premier or Labor to act in Victoria’s best interests, while 42 per cent distrust them.

Asked who they trust more, Opposition Leader Jess Wilson and the Coalition lead Mr Carroll and Labor by 47 per cent to 31 per cent.
Mr Carroll also trailed Ms Wilson as preferred premier, with the latter on 48 per cent, down one point since June, and the Labor leader on 27 per cent.

A majority of voters, 51 per cent, also believed it was time to give Ms Wilson and the Coalition a chance, compared with just a third who believed Labor deserved another term.
The poll suggests Mr Carroll has stemmed Labor’s decline in just his first week in power, but has not erased more than a decade of voter fatigue with a government hoping to win a historic fourth term.
It comes after separate polling, published last week on the eve of the leadership coup, showed Labor was trailing the Coalition 44 to 56 on a two-party-preferred basis.
That polling also cemented Ms Allan as the least popular premier in the nation with a negative personal approval rating that fell five points to -37.
Mr Carroll has been desperate to distance himself from both Ms Allan and former premier Daniel Andrews and has repeatedly said his government would represent a “new direction” for Labor.

Freshwater Strategy director Dr Mike Turner said Labor was clinging on in the election race.
“The Coalition would much rather be where they are today, but they shouldn’t measure the curtains just yet,” he said.
“A 52-48 lead is winning, but not yet won. The leadership change has given Labor a brief second look from voters, with 26 per cent saying Ben Carroll makes them more likely to consider Labor. That’s just enough to keep this election competitive.
“One Nation remains a significant force in Victorian politics, but their trajectory has changed significantly.
“They’re still polling at a healthy 22 per cent, but they’re down three points since June.
“Surges are easy to build, but holding them together once a campaign gets serious is much harder.
“The most politically significant number in this poll isn’t the two-party preferred, it’s that around one in five Labor voters think Jess Wilson would make the better premier.
“Elections are won by persuading people to change teams, and that’s exactly where the Coalition’s opportunity lies.”

A bombshell IBAC report on a probe into secret deals between the Andrews government and the firefighters union is days away from landing in parliament, as it’s revealed a complaint from a former Labor government insider triggered the investigation into the dealings of their own government.

Victoria’s corruption watchdog is poised to release a bombshell report into alleged secret deals struck between the Andrews government and the firefighters union, with MPs and Labor insiders bracing for the fallout.
The explosive findings could be tabled in the Victorian parliament as early as this week, and the Sunday Herald Sun can reveal for the first time that the original probe by authorities was triggered by a referral from one of Labor’s own.
The state’s Independent Broad-based Anti-corruption Commission is preparing to hand its final report on Operation Richmond to parliament, this development comes after multiple delays spanning the seven years since the investigation first began.

The highly secretive probe launched in 2019 centred on enterprise bargaining agreement negotiations that took place in 2016 between the powerful United Firefighters Union and the Andrews government. Those negotiations ultimately led to the splitting of the state’s fire services into Fire Rescue Victoria (FRV) and the Country Fire Authority (CFA).
It’s understood key to the probe are closed-door meetings between Andrews government members and firefighters’ union boss Peter Marshall.

The EBA dispute was a massive issue for the government in 2016, prompting former Victorian Emergency Services Minister Jane Garrett to famously resign from Cabinet as former Premier Daniel Andrews sought
to push a disputed enterprise agreement with the firefighters’ union through.
Ms Garrett, who died in 2022 from breast cancer at age 49, staunchly opposed to the deal being negotiated, which prompted her to stand down.
She had also previously accused union boss Peter Marshall of making serious personal threats against her and her staff, including threatening to put an axe in her head, an allegation Mr Marshall has always furiously denied.

After her standing down, Mr Andrews moved to split the fire services in a bid to end the industrial dispute.
The Operation Richmond investigation has been the most secretive in the state’s history, with those hauled before the inquiry barred from speaking publicly and little is known about the original referral and the ongoing probe.
Some Allan government MPs say state members are bracing for potential fallout once the document lands, and are concerned it will compound the public’s perception of integrity concerns with unions due to the CFMEU Big Build scandal.
Several sources told the Herald Sun that Mr Marshall’s years-long attempt to block the investigation results from being made public was a clear sign of damaging evidence.
“The amount of money that’s been spent on legal matters to do with this report coming out is just astronomical, so obviously its not good” one Labor MP said.

However, others have pointed to the drawn-out nature of the legal battles as evidence that IBAC’s powers need strengthening, which the state government have finally committed to do.
Another government MP said many were not convinced the report will be an issue as it may not find corrupt findings, and is so old that the public would likely not be held against the Allan government.
The Integrity Oversight Committee tabled a report in December 2025, proposing 31 recommendations to bolster IBAC’s legislative framework, with investigations and reporting delays on Operation Richmond being raised as an issue in the hearings.
There have been several legal challenges to block the report from being released since the draft report was handed over to those involved several years ago.

In the most recent battle in the Supreme Court, anonymous applicants sought to suppress the report’s release at the eleventh hour, before the Supreme Court unmasked them in June 2026 as the UFU and Mr Marshall.
This was despite Mr Marshall claiming on camera at the Labor state conference that the applicant was not himself.
“Whatever is in it, it must be bad for someone, and that most likely is the UFU and Peter Marshall, given how many times he’s tried to keep it under wraps,” a senior union source told the Herald Sun.
Operation Richmond is one of the longest running corruption investigations in Victoria’s history with many pointing out it has lasted longer than some world wars.
While very little is known publicly about it, it’s been revealed previously that both Peter Marshall and former Premier Daniel Andrews were among those who were quizzed in hearings.
The Victorian Independent Broad-based Anti-corruption Commission (IBAC) issued a statement in July saying it was “pleased” with the Supreme Court’s July 2026 decision to dismiss a legal challenge against issuing the report publicly.
“Reporting to parliament and the public on IBAC’s investigative findings is a crucial part of our role in exposing and preventing corruption and misconduct in Victoria.”
But they have declined to announce a date the report will be tabled in parliament.
Peter Marshall was contacted for comment.

A backroom deal inked during a chaotic ALP caucus room meeting that elected Ben Carroll as party leader has thrown a curve ball at royal commission planning.

A backroom deal inked during a chaotic ALP caucus room meeting that elected Ben Carroll as party leader has thrown a curve ball at royal commission planning.

The Herald Sun can reveal that Mr Carroll’s rival during the leadership spill, staunch Jacinta Allan ally Sonya Kilkenny, received a written agreement that she could retain two of her ministerial portfolios during a Cabinet reshuffle.
The signed deal, which was struck just minutes before a dramatic two-hour long caucus meeting, compelled Ms Kilkenny to drop her bid for the leadership.

This allowed Mr Carroll to be elected unopposed as leader just minutes before the start of the parliamentary day, and become Victoria’s 50th premier.
Ms Kilkenny is the Attorney-General as well as the minister for planning and for finance.
It is understood Mr Carroll’s allies want finance taken off Ms Kilkenny, who has only held it since April, in a bid to get fresh ministers into treasury portfolios and the powerful budget and finance committee.

If this was to happen it would mean Ms Kilkenny would be able to retain Attorney-General and the planning portfolios – despite being an internal critic of a royal commission into the construction sector and one of the chief protectors of Ms Allan.
One Labor MP said the deal was a disaster, but that Ms Kilkenny shouldn’t be allowed to hold the new government’s agenda hostage.
They questioned how Ms Kilkenny would be able to keep the chief law officer role given the new agenda Mr Carroll wanted to set.

“She is so out of step with what Ben wants to do, as A-G,” one said.
Another source said that senior members of the new government were looking to ensure Ms Kilkenny would not be able to dilute or influence the running of a royal commission, which is the centrepiece of the new premier’s pledge to run a different government to Ms Allan.
They said there would be a “workaround” possible, if required.
The backroom deal has released anger in parts of the ALP, with one left faction party veteran particularly scathing.

“There is a genuine debate about Sonya — whether she is the worst planning minister in history, or the worst Attorney-General,” they said.
“It’s a debate that could keep people up all night.”
Parts of the planning sector were also seeking a fresh start, with one industry veteran saying Ms Kilkenny had not approved sensible projects “while green lighting monstrosities that are loathed by their communities”.
Former union legends including Bill Kelty have backed the call for a royal commission into the construction sector, saying it was necessary to provide a “clean slate”.
Mr Carroll has said he wants the inquiry to have “exhaustive” terms of reference, which would allow the commissioner and their team to “leave no stone unturned”.
Corruption in the construction industry has dogged the government since the militant CFMEU was plunged into administration in 2024.
A report by corruption-busting barrister Geoffrey Watson says the union was infiltrated by bikies and criminals, and he estimated that the corruptive union influence on the construction sector may have added $15bn to the $100bn Big Build.
Former premier Jacinta Allan disputed that figure, but refused to say how much it had cost, or to order a full-scale inquiry into rorts and coercion on taxpayer-funded sites.
As reported by the Herald Sun, it is likely the terms of reference would be set to allow a commissioner to call politicians — including former premiers Daniel Andrews and Jacinta Allan — to give evidence.

A major review of the controversial Suburban Rail Loop by the Carroll government will consider radical options, including diverting existing contract cash.

Up to $10bn of Suburban Rail Loop deals about to be inked are expected to go on hold during a review that will also assess whether existing contractors can be diverted to other infrastructure projects.
The Herald Sun understands that radical options are likely to be assessed as part of the review, including whether tunnelling deals already signed could be repurposed.
Tunnel boring machines for SRL East were expected to set off by September, as part of two deals worth $5.3bn, but would not be switched on while the Carroll government resolves the project’s future.

The 26km first stage of the controversial loopwas estimated to cost $30-34.5bn in 2021, with the entire 90km project forecast to cost more than $200bn to build and run over 50 years.

A full assessment is expected to be brought to the new Carroll Cabinet, along with options of how the government could wind it back.
This could include whether contracts could be pushed out, altered, or even repurposed to other projects – if feasible.
Premier Ben Carroll remained tight-lipped about a potential review on Wednesday,saying he would run a proper Cabinet process before providing any details.
While he also emphasised that he would be a premier “that does not break contracts”, one source said this wouldn’t preclude the government exploring options to divert contracted companies to other road or rail projects if it was possible.

Industry insiders said the concept was theoretically possible – pointing to the cancellation of the East West Link in 2014 that saw big builders “made whole” through other infrastructure jobs – but that the SRL was a long way down the track and involved a multitude of partners.
Seven packages of works are spread across the breadth of the first stage of the loop and about $17bn worth of contracts have been inked.
A Labor source said that if the expected real cost of the first stage, which would connect Cheltenham to Box Hill, soared well above the $34.5bn estimate provided in 2021, it could be preferable to lose some skin for work already done than to spend more than $20bn extra on a line that may not be the best value for money.

Any option to divert resources to other projects would also need to look at whether tunnel boring machine launch sites are filled in and built over with housing, or whether they would be left as a future option, should the state’s financial situation change.
Only two of seven SRL contracts are waiting to be inked, and include packages to build stations in Cheltenham, Clayton, Monash, Glen Waverley, Burwood and Box Hill.
One of those deals has a preferred bidder, made up of John Holland, Arup, and Kellogg Brown and Root, that is on the cusp of putting pen to paper after nine months of negotiations.
Two tunnelling contracts, which have been in place for years, involve consortia that include construction giants CPB, Ghella, Acciona, Webuild, GS Engineering, and Bouyges.

Mr Carroll on Wednesday made it clear that he would not kill government contracts, which Labor had previously done for the East West Link and Commonwealth Games.
Those two decisions, made under Daniel Andrews, wasted about $1.8bn.
“I am going to be a premier that does not break contracts,” he said.
“I’m going to be a premier that values every single dollar.”
Mr Carroll also reiterated his support for the airport rail link, which would be a “game changer”.
Mr Carroll has indicated he would bring the SRL to Cabinet for examination, but did not respond to questions about whether there could be a pivot from SRL to Airport Rail.

New Premier Ben Carroll will work to address Victoria’s $200bn debt, offer tax breaks to businesses and review the $34.5bn SRL while considering reviving an airport rail link in an 11th-hour Labor agenda reset. 5 min read
July 28, 2026 - 7:30PM

New Premier Ben Carroll will order a sweeping review of the Suburban Rail Loop, reopen closed police stations and look at fast-tracking Melbourne Airport Rail.
The Herald Sun can also reveal Mr Carroll will focus on finally tackling Victoria’s record $200bn debt and offering tax breaks to businesses to encourage investment, while one Labor insider even said he would consider ditching former premier Daniel Andrews’ controversial statue.
Mr Carroll was sworn in on Tuesday as Victoria’s 50th premier, following Jacinta Allan’s resignation after 1036 days in the top job, immediately promising a royal commission into Big Build rorts and to boost powers for the state’s anti-corruption watchdog.

After seizing power in an extraordinary day in Parliament, Mr Carroll immediately sought to distance himself from his Labor predecessors, declaring at his first press conference: “I am not Daniel Andrews, I am not Jacinta Allan.”

The Premier now has just 124 days to roll out his new agenda before the November election, with Labor figures saying his supporters are quietly preparing a broad reform blueprint to reset the government’s priorities.
The ambitious agenda, which has been discussed by Mr Carroll allies for more than a year, will put every major government project under the microscope as Labor desperately tries to win back voters’ confidence.
Opposition Leader Jess Wilson slammed Mr Carroll, saying it didn’t matter who ran the ALP as it was still a corrupt government and needed to be shown the door by voters.
Mr Carroll has been privately critical of the SRL for a long time and will review existing contracts for the $34.5bn first stage from Cheltenham to Box Hill, with the aim of examining if the mega-project can be reordered or delayed to free up money and resources – potentially fast-tracking the long-promised Melbourne Airport Rail Link.
The move would represent one of the biggest shifts in infrastructure priorities since Mr Andrews first unveiled the SRL in 2018.

One minister said there was no doubt the project and a full breakdown of its costs would be brought to Cabinet for the first time under Mr Carroll to “look at the mechanics” and work out how to proceed.

Another source said airport rail was popular while the SRL was “neither popular nor unpopular” and its electoral impact had been overstated, with the first two stages from Cheltenham through to Broadmeadows estimated to cost $216bn to build and operate over 50 years.
It is understood Mr Carroll also wants his government to examine reopening police stations as part of a broader law-and-order reset, amid community concern over crime.
After vowing on Tuesday to rebuild Labor’s relationship with the business community, Mr Carroll is expected to focus heavily on reducing Victoria’s record debt burden, with supporters arguing stronger budget discipline is needed before the government can offer tax relief designed to encourage investment and jobs.
The new policy focus represents the most significant ideological shift Labor has contemplated since Mr Andrews swept to power in 2014.
But it would rely on the Premier persuading his own Cabinet to embrace reforms that, in some cases, overturn policies championed by his predecessors.
Sources said Mr Carroll intended to work through Cabinet rather than rely on “captain’s picks”, arguing lasting reform required ministers to own the agenda.

In his first appearance as Premier yesterday, Mr Carroll said: “Different times require a new approach … Victorians want change, that change starts today.”
His first major announcement was a royal commission into Victoria’s construction industry, coupled with a special prosecutor and expanded powers for IBAC to investigate corruption.
“Enough is enough,” Mr Carroll said.
He also promised every taxpayer dollar would be treated “with respect”.
On law and order, Mr Carroll revealed his first act as Premier had been to speak with Chief Commissioner Mike Bush, promising Victoria Police and the courts would receive the powers they needed to meet “community expectations”.
Asked why he had put his hand up for the premiership just weeks after looking Ms Allan in the eye and pledging his support for her, Mr Carroll said he had been approached on Monday by a cross-factional delegation of colleagues who had pleaded with him to take on the role.
The delegation had already approached Ms Allan to tell her she had lost the support of the party at that time, he insisted.
New Deputy Premier Gabrielle Williams said it had “become abundantly clear we needed to reset”.

Mr Carroll spruiked his background as being western-suburbs born and raised, detailing how he grew up in Airport West.
His first press conference came just hours after Ms Allan sensationally resigned at 9.30am, avoiding a potentially catastrophic leadership showdown she had little chance of winning.
The former premier said she was stepping aside because it was “the right thing for the Labor Party and the Victorian people”.
An emotional Ms Allan said she was proud of expanding women’s health services and insisted she would have relished fighting the November election.
She acknowledged the three Labor premiers she served under – Steve Bracks, John Brumby and Mr Andrews, reserving her final thanks for husband Yorick Piper and children Peggy and Cormack.
“My greatest joy is spending time with you and I can’t wait for it,” she said.
The former premier pledged Mr Carroll her “unqualified support” if he was chosen to succeed her by the party room, but still signed a nomination form for factional ally Attorney-General Sonya Kilkenny, helping her collect the required number of signatures to potentially challenge him for the leadership in a shock twist.
That plan fell away after Ms Williams, an ally of Mr Carroll’s, beat major events minister Steve Dimopoulos in a secret ballot for the deputy premier position.

“Once Sonya saw that, it was clear to her she could never have got the support of the party room to be leader and she, wisely, backed away,” one source said.
Ms Williams’ elevation to the deputy leadership marked what Labor insiders described as a collapse of the once-dominant Socialist Left faction that had controlled the party throughout the Andrews years.
The decisive factional realignment hands Mr Carroll, from the party’s Right, greater authority to reshape both his ministry and the government’s priorities.
The Coalition immediately hit out at Mr Carroll’s anti-corruption agenda, questioning why he had previously argued a royal commission would take too long and cost too much before making it his signature announcement as Premier.
Prime Minister Anthony Albanese congratulated Ben Carroll, saying: “Premier, I’m looking forward to working together to deliver better schools, healthcare and more homes for Victorians.”

Premier Ben Carroll has refused to rule out pausing and reviewing the $34.5 billion Suburban Rail Loop project which has been a signature government project.

“I’ll have more announcements into the future,” he said. “I’ve got no announcements to make on that.

“As I said in my opening remarks, every dollar I spend will be invested on behalf of the Victorian taxpayer, and will treat every dollar with the respect it deserves.”

The campaign to oust Jacinta Allan as Victorian premier has reached a critical stage, after Labor factional chiefs met on Sunday night to determine whether she has the support of enough government MPs to stay in the job.
The extraordinary meeting of factional conveners from across the left and right of the party, which was called at short notice, was expected to provide the first clear sign of whether Allan has the caucus backing she needs to lead the government to the state election on November 28.

A defiant Allan, who spent Sunday night at her home in Bendigo, told her supporters that, regardless of what the factional chiefs decide, she won’t resign.
The leadership manoeuvres are taking place in the absence of a declared challenger.

Allan’s most likely replacement, Deputy Premier Ben Carroll, has indicated to colleagues that while he would be a contender if the leadership becomes vacant, he will not use his numbers to bring the premier down.
The Sunday night meeting was confirmed by MPs on both sides of the party’s factional divide. There is consternation among some MPs, particularly across the dominant Left faction, that the meeting’s conveners have not sufficiently canvassed the views of parliamentarians within their respective groups.
The Age has spoken to seven Victorian Labor sources who say they believe Allan would lose if her leadership came to a vote of the party’s 69 MPs.
But, as with the last round of rumblings in June, the pathway for a leadership coup is littered with assumptions that have not yet been realised.
Multiple sources from across both factions agreed it would be difficult for Carroll, who sits on the Right, to challenge Allan – despite some within her own Left faction wanting him to do so – after he publicly ruled out a challenge at a press conference last month.

After looking the premier in the eye and declaring he would not challenge her for the leadership, Carroll told reporters, “I’ve got a young daughter at home, and I couldn’t be more proud to make sure that she grows up knowing that I supported Jacinta Allan to be a world-class premier and get re-elected in her own right”.
Another option being considered is a delegation of factional leaders speaking to Allan and asking her to step aside.

The premier spent Sunday night at her family home in Bendigo with staff, preparing for Monday’s Cabinet meeting.
Two sources said they found it difficult to believe Allan would go down without a fight, but conceded it was not impossible she could be convinced if it were clear she no longer had the numbers in caucus.

A supporter of Allan, on the condition of anonymity to talk freely, said if the Sunday night meeting showed a majority of MPs wanted a change of leadership, the premier could face a vote of no confidence at Tuesday’s caucus meeting.
“It would be a very brave premier that continued in light of an unfavourable outcome,” they said.
Attorney-General Sonya Kilkenny on Sunday said the leadership speculation was “idle gossip”.

“She has my full support, and this idle gossip doesn’t help Victorians,” she said.

“It is only hurting Victorians at a time when Victorians need us all to be focused on them, and that is exactly what Jacinta Allan and our Labor government, our team, is doing.”
Over the past week, a range of new policies have leaked from the Premier’s Private Office that suggest Allan’s team is trying to find announcements that could mollify her colleagues.
On Monday, cabinet will consider a proposal to create a new agency within Victoria Police that targets organised crime and is informed by Australia’s best criminal intelligence.
The policy has been viewed internally as a way to kill off pressure for a royal commission into Big Build corruption, tying the issue together with other political problems such as an increase in firebombings across Melbourne, and community concerns about youth crime rates.
Another leaked policy floated amending the rate cap rules to allow councils to better recoup the costs needed to pay staff – a policy supported by the Australian Services Union but quickly seized on by the opposition as a cost of living attack.

One MP said Allan was in denial about her support and rather than step aside would likely enforce party rules for a spill – which requires a vote of the Labor membership if the caucus result is contested.
But they also said those conspiring needed to “piss or get off the pot”.
A senior Labor figure said Allan’s leadership had been doomed, and she was now incredibly unpopular despite being given time to connect with voters.
“There is now an opportunity to push the reset button, give confidence back to voters and remind voters of the benefits of a strong Labor government”.
The latest Resolve Political Monitor has Allan’s likeability at minus 36, her equal lowest result on record.
Opposition Leader Jess Wilson maintains a lead on preferred premier, with 43 per cent of voters saying they want her to lead the state compared with 24 per cent for Allan.

Victorian Labor MPs and powerbrokers have launched a fresh bid to topple Premier Jacinta Allan who they say is “driving the party over a cliff” and put it in a “hopeless” place, as new polling shows the Coalition ahead.

Victorian Premier Jacinta Allan faces a showdown on Tuesday as Labor MPs and powerbrokers plot a fresh bid to topple her amid new polling which shows the Coalition now leads the government 56 to 44 on a two party preferred basis.
The polling, if replicated at November’s state election, would result in electoral disaster for the ALP.
Fear of a statewide wipe-out is now fuelling active leaking among despairing MPs and the deliberate undermining of their own party’s policies.

MPs and factional powerbrokers have spent recent days counting numbers and sounding out colleagues over the long-term future of Ms Allan’s leadership.

It also comes as the government fights public battles on a number of fronts, with teachers marching on the streets as they seek a better pay deal and growing calls for a royal commission into the Big Build.
Tuesday’s return of parliament will provide the first opportunity for MPs to regroup and determine whether any push has enough momentum to force a spill, unless Ms Allan stands aside in the next 72 hours.
“There is a sense that Tuesday is the last chance to do something,”one senior ALP figure said.
“There have been ongoing discussions between the factions and something is trying to be worked out.
“A large section of the Premier’s own faction have now decided the situation is hopeless.”

The growing unrest follows a brutal caucus retreat last week – which was supposed to be a vital reset for the Premier – but saw Police Minister Anthony Carbines openly vent his frustration with Ms Allan’s office and the party’s campaign operation.
MPs present offered conflicting accounts of exactly who bore the brunt of his anger, with some saying it was directed at Ms Allan and others saying it was more about head office campaign strategy but there was no disagreement about the ferocity of the outburst.

Ms Allan is said to have performed reasonably at the retreat, but those agitating for change were unmoved, saying her rev-up missed the mark and the most memorable moment belonged to Mr Carbines.
As another poll shows the Labor primary vote firmly stuck in the mid-20s and the coalition on track for victory at the November state election, Ms Allan continues to stare down a serious revolt that some believe has done her permanent damage regardless of whether she remains in the top job.
The poll, by Australian Energy Producers and conducted by JWS Research, surveyed 1000 Victorians in 28 marginal and significant seats between June 26 and July 3.
It showed Labor’s primary vote continuing to languish at just 23 per cent, a collapse of 12 points from its 2022 election result.
It also put the Coalition sitting at 29 per cent and One Nation at 24 per cent, forecasting a two-party-preferred result of 56 to 44 in favour of the Coalition.

Multiple sources said there was the prospect of a delegation visiting Ms Allan to advise her that her time was up early next week, but key factions still seem unsure whether Deputy Premier Ben Carroll – the only person they say would be a viable candidate – wants the job.
Ms Allan’s supporters insisted she had no intention of stepping aside and remained focused on delivering the government’s agenda ahead of the election.

One senior MP said rebels needed to decide what they wanted to do or “take their medicine and get on” with trying to stay in government under Ms Allan.
Another Labor figure said the mood in the party was awful and that the right wing of the party, which does not have a majority in caucus, had hardened in its view of Ms Allan’s performance.
While this did not mean a spill was imminent, it could shift the ball into the court of key left wing groups that also want change.
“The mood is as grim as it’s ever been,” one Labor source said.
“But I still don’t see anyone doing something to pull the trigger. It’s a very weird situation. Everyone thinks she’s driving the party over a cliff but no one wants to be the person to grab the wheel.”
Multiple sources said a challenge would be a kamikaze mission if numbers were not locked in, while another said there were several scenarios in which a coup could be pulled off if there was enough leadership shown by senior MPs who knew Ms Allan’s time was up.

Some still say that the only way to engineer a change was for it to be led by Mr Carroll — who effectively ruled himself out of a challenge in June.
Labor figures are split on whether Mr Carroll’s pledge of loyalty in June could be unwound, or whether it meant others would have to clear a path for him if he believed there was no other choice but to challenge.
“If no one is prepared to lead, then they go over a cliff,” one said.
A senior Labor figure said there was still no sign that those who wanted change knew how to get it done.
“There’s no leaders, and there’s not that many followers, which is part of the problem,” they said.
Over the past fortnight some ministers have expressed frustration at the party’s position, with one saying it looked like the “wheels have fallen off a bit”.
Another said it was becoming increasingly difficult for Ms Allan to get things done because of her parlous position internally.

Ms Allan remains plagued by anger over corruption allegations linked to the Big Build, community concerns about crime and cost-of-living pressures, and a growing belief among MPs that Allan has become an electoral liability.
As revealed in the Herald Sun this week the Premier will seek cabinet endorsement to reform the government’s longstanding rate capping policy in a desperate effort to consolidate her internal support base.
The push is being driven by Ms Allan’s urgent need to lock in support from Australian Services Union-aligned MPs and union leadership — a bloc considered critical to her survival should a leadership challenge materialise.
Senior ministers have begun breaking ranks, with major cabinet leaks — including details of a new agency to tackle the state’s lawless underworld and accounts of ministers criticising the Premier — rocking a government that can ill afford more self-inflicted damage.

Prime Minister Anthony Albanese attended an exclusive dinner hosted by an uber-rich 25-year-old whose billionaire father was accused by the Tax Office of repeatedly deceiving authorities to funnel huge sums of money from China into Australian bank accounts and mansions.
The accusations are detailed in a damning 189-page Australian Taxation Office affidavit about the Lee family patriarch, which this masthead fought for months to obtain and describes red flags about the sources of the Lee family’s wealth.
The 2021 document also contains suspicions that 60-year-old Phillip Dong Fang Lee secretly controlled business and financial interests in China despite earlier vowing to the Australian government that he had sold his Chinese business assets.
Questions about the Australian family’s wealth have been thrust into the spotlight after TheAustralian Financial Review reported this weekthat Phillip’s son Felix pledged Albanese a $1 million donation at the exclusive dinner at the family’s Point Piper mansion, Mandalay.
Also at the dinner was Commonwealth Bank chief executive Matt Comyn, while the Financial Review reported the bank’s former boss David Murray, ex-ASIC chairman James Shipton and former Victorian premier Dan Andrews also attended.

Albanese has refused to confirm how much was donated, saying any contribution to the Labor Party would be appropriately disclosed as required.
A senior government source, unable to speak publicly, said the amount would be “drastically less” than $1 million.

The source said they also did not believe the prime minister’s office was aware of the Tax Office’s allegations against Phillip Lee.
That apparent failure of due diligence comes despite the wider issue of political donations from wealthy donors looming large since 2019, when a corruption inquiry into the state’s donation laws revealed Chinese billionaire Huang Xiangmo had delivered $100,000 cash in an Aldi plastic bag to the NSW Labor Party.

Climate 200 group founder Simon Holmes à Court has also +drawn criticism for the financial backing of teal independents, as has One Nation leader Pauline Hanson more recently when she was gifted a private jet by mining billionaire Gina Rinehart.

The allegations against Phillip come on the back of an exhaustive ATO investigation, drawing on data from anti-money laundering agency AUSTRAC, bank records, information from Chinese authorities and ATO interviews with Phillip and his associates.
Chief among the Tax Office’s claims are details about “sham arrangements” where purported loans from Phillip’s 92-year-old mother, friends and business associates are allegedly designed to conceal the true source and character of the foreign income. It was not suggested Phillip’s mother was involved in wrongdoing.
It comprehensively details deep suspicions held by the Tax Office that Phillip used dishonest means to move vast sums of money from China to Australia over several years to fund his Australian business, property and gambling activities.

There is no suggestion by this masthead the allegations are true, only that they were made.
But the allegations also shatter the mystique that has developed around Phillip, and sheds light on the ATO’s theory of how the reclusive businessman accumulated a substantial property portfolio worth hundreds of millions of dollars, and landed on the 2024 The Australian Financial Review Rich List with an estimated $1.66 billion fortune.
The ATO’s allegations have led to no criminal charges and have never been tested in any court after the Tax Office and Phillip reached a settlement that included paying back part of the tax liability.
The ATO makes no adverse comments about Felix. Instead, the damning affidavit shows the Tax Office suspects the family’s Australian wealth was founded via a scheme that effectively moved money into this country through the purported loans from his elderly grandmother and associates.
The ATO’s affidavit also raises the prospect that Felix has been an unwitting beneficiary of his father’s allegedly suspect dealings.

It details a 2015 transaction where $7.86 million was withdrawn from a bank account in the then 15-year-old Felix’s name to fund the purchase of an investment property in Bellevue Hill.

That investment was sold for $12 million in 2019, with the proceeds of this sale mostly going to Phillip’s bank account.
Mandalay, the house where the prime minister was hosted, was also purchased, according the Tax Office affidavit, after money was transferred from the account of Phillip’s mother, through the account of another of his sons, Edward, who at the time was 10 years old, before being used to raise a cheque.
More recently, a 2442-hectare pine plantation at Tea Gardens on the Mid North Coast that was bought by Phillip’s company, Australian Pine Products Pty Ltd, for $22 million in 2017 used funds that the ATO traced back to Edward’s bank account.

Title records show that the property was transferred to Felix’s Lee Family Office last month.
Phillip did not respond to requests for comment.
Asked about the Albanese dinner, a spokesperson for Felix said he would not comment on private engagements or his father’s tax troubles.
“Phillip Lee’s tax affairs are his own and are not related to Felix Lee.”
Felix now runs an investment family office touted as wholly independent of Phillip’s wealth and chaired by former federal treasurer and ex-ambassador to the United States Joe Hockey.

“Felix is pursuing his own path and is entitled to be judged on his own conduct, decisions and standards,” Hockey told this masthead early this year.

“The Lee Family Office is 100 per cent Felix Lee – with its own governance, purpose and operating boundaries.”
A source familiar with the business, but not permitted to discuss its dealings publicly, said funding for the investments came from Felix’s paternal grandmother – the same woman Phillip claims also previously funded his Australian business and financial activities.
It’s a claim shared by friends and neighbours, although none know her name.

Phillip, who the Tax Office stated is also known in China as Fei Xie, also credits his parents with much of the family wealth.
He told the ATO his late father started a real estate and freeway construction business in China in about 1985, investing in various freeway projects.
Phillip’s mother was involved in the family business, as was Phillip from the early 1990s when his father helped him set up companies related to small freeway construction projects.
Phillip’s father died suddenly in 2010, leaving his mother as the beneficiary, although by that time, Phillip claims, his financial interests in China had been wound up.
Phillip told the Taxation Office that he cashed in his business interests for about $200 million in 1998, bringing about $80 million of that to Australia, and depositing the $120 million balance into banks in other jurisdictions. A year later he migrated to Australia.

The paper trail for Phillip’s family in China is thin. Phillip’s father, Shiwen Xie, and mother Zhangzhu Li, 92, had at the time of the Tax Office investigation in 2021 never filed a tax return in China.
What’s more, the ATO was told by Chinese authorities that “no companies have been identified with Phillip’s father as a shareholder or a legal representative”.
The affidavits also detail a series of contradictory statements by Phillip about his business history.
Phillip’s claim in 2017 that he had sold his Chinese business interests in 1998 is inconsistent with what he told the National Australia Bank in 2006 when applying for a business loan to buy his controversial bushland retreat at Fame Cove on the NSW Mid-North Coast.

An internal memo, quoted in the court documents, about a business loan sought by one of Phillip’s companies stated that the NAB understood Phillip’s main business interests were constructing freeways and highways across China.
It was a point Phillip reiterated in 2021 as he sought another business loan for his Landmark Development and Finance Group as a trustee for his Terrey Hills Golf and Country Club interests.
In a document supporting that NAB loan application, detailed in the affidavit, the bank describes Phillip as running an infrastructure construction company specialising in freeways, bridges and tunnel construction, and which had over 20 subsidiaries in major cities across China, a total asset portfolio of $2 billion and more than 60,000 staff across the country.
According to Phillip’s immigration application he established the freeway construction company Guangdong Hu Shen in 1993, which was awarded the contract to build the Shenzhen-Shantou expressway from 1994-96 and the Tu-Wu-Da Expressway in the Xinjiang Province.
His other majority-owned company, Mi Quan, was contracted by Guangdong Hu Shen to supply safeguard products for freeways.

According to Chinese authorities, Phillip sold his shares in Guangdong Hu Shen in 1996.
Phillip’s shareholding of Mi Quan remained when in 2005 the company’s business licence was revoked by the authorities for failing to pass annual inspections the previous year.
Loans from friends and family
In 1999, soon after Phillip had moved to Sydney, he married Xiaobei Shi, then 22.
The couple maintained a relatively low profile until 2015, when Shi purchased their Point Piper trophy home, Mandalay, setting a $40 million non-waterfront house price record for Sydney.

The decade since has been marked by a series of headlines over a long-running dispute over alleged environmental breaches at his private bushland retreat on the state’s Mid North Coast and revelations about his prodigious gambling in the 2022 inquiry into The Star casino.

In 2017, Phillip was informed there would be an audit of his taxable income from 2012 to 2016, from which the ATO determined that Phillip’s income was understated by $262 million.
Among the audit’s most notable findings, outlined in the affidavit, was the $120 million received into Phillip’s various Chinese bank accounts in 2015 and 2016 that he claimed was from loans from friends and associates, and $115 million transferred into his wife’s bank accounts in 2012 and 2015 that he said was also a loan from his mother.
In detailing the loans, the Tax Office listed $25 million sent from Phillip’s mother that was executed in Shanghai and witnessed by Phillip’s sister. The Tax Office claimed his sister was in Australia at that time.

Another loan, this time for $100 million in 2015, was witnessed by Phillip’s then 23-year-old nephew on February 30, a date that doesn’t exist. Phillip’s lawyer later amended the date to February 28.
There were also loans from some of Phillip’s and his late father’s friends.
Among them, five family friends loaned Phillip roughly $60 million from 2010 to 2018, all without any loan agreement and, in some cases, with no interest payable. None of those loans had been repaid, as of the Tax Office’s evidence of 2021.
The Tax Office also alleged that Phillip’s mother’s bank accounts were operated by “Lee and his wife as if they were their own”, and the money used at their own discretion.
“The purported loans are sham arrangements, being devices to conceal the true source and character of the funds as foreign undisclosed income”, states the affidavit.

Phillip’s UnionPay Debit Cards account at Star City casino was also analysed by the Tax Office, revealing that $110 million was processed by Star City Hotel. Of that, $97 million was transferred to Phillip’s account and $9.5 million to his business associate Weihua Li.
“The commissioner believes that the funds used by Mr Lee in his dealings with the Star City Hotel represent unexplained foreign income,” states the affidavit.