Members of parliament and their staff, as well as bureaucrats and federal police, will be covered by a new national anti-corruption watchdog with greater powers than a royal commission.
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Attorney-General Christian Porter on Monday released the details of the Commonwealth Integrity Commission, with laws expected to go to parliament next year after public feedback.
"Australians rightly expect that those working in the public sector - including politicians and their staff - are held to the highest standards of honesty and accountability," Mr Porter said.
"Which is why the new CIC has been given the most significant powers and resources to detect and deter criminal activity and enhance the public sector's long-term resilience."
It would have the power to compel people to give sworn evidence at hearings, with a maximum penalty of two years in jail for not complying.
As well, people could be compelled to provide information and produce documents - even if the information would incriminate the person - with a maximum penalty of two years in jail for not complying.
Searches under warrant of homes would be allowed and surveillance devices could be used.
Mr Porter said the commission would have a list of 143 offences to draw from, covering virtually every type of serious criminal conduct.
While its public sector division would not hold public hearings, Mr Porter said the public part of any investigations would be when matters went to court.
The commission would take referrals from agencies, for public sector matters, but the law enforcement division could receive public referrals.
The commission would only be able to take its own initiative in cases where something was already under investigation, but another matter had arisen as a result of the initial probe.
Shadow attorney-general Mark Dreyfus said the government had not listened to criticism of its proposals first flagged in 2018, including that it must have public hearings, and the ability to launch its own investigations and probe more than just criminal offences.
"(This is) the sort of integrity commission that you would have when you don't want to establish an integrity commission," Mr Dreyfus told reporters.
Greens leader Adam Bandt described the proposed model as a "protection racket for corrupt politicians".
The government has committed $147 million to the CIC, including shifting the Australian Commission for Law Enforcement Integrity under its wing.
In the meantime, from January ACLEI's jurisdiction will be expanded to cover a wider range of agencies.
Mr Porter said the poor design of state-based anti-corruption bodies had led to too many instances of "trial by allegation", ruining the reputation of innocent people.
"The model ... strikes the right balance between the need to protect the rights of individuals and the need to establish a powerful investigative body that can guard against potential criminal corruption at the Commonwealth level."
The consultation period will run from November to March 2021.
Australian Associated Press