The new legislation expands the scope of disclosable matters, provides greater protections and remedies for eligible whistleblowers and increases the obligations on companies to comply. The reforms also broaden the whistleblower protection regime for disclosures regarding breaches of the tax laws or misconduct relating to an entity’s tax affairs.

Who does it apply to?

The whistleblower legislation applies to companies registered under the Corporations Act 2001, banks, insurance and life insurance companies, superannuation entities or trustees and other prescribed regulated entities.

Summary and key changes

The new legislation:

• Expands the definition of eligible whistleblowers to include officers, current and former employees, contractors and their relatives;
• Allows protected disclosures to be made about a range of corporate misconduct or an improper state of affairs, but excludes most disclosures of personal work-related grievances from protection;
• Provides increased protection for eligible whistleblowers by allowing anonymous disclosures and expanding the prohibition against victimisation or detriment towards them;
• Increases penalties for breaching whistleblower protections (currently up to $10.5 million); and
• Requires certain companies to have whistleblower policy.

Requirement to have a whistleblower policy

Public companies, large proprietary companies and proprietary companies that are the trustee of a registrable superannuation entity, must have a whistleblower policy under the new legislation. For these companies, it is an offence to not have a whistleblower policy which sets out information about:

• The protections available to whistleblowers;

• To whom disclosures that qualify for protection may be made and how;
• How the company will support whistleblowers and protect them from detriment;
• How the company will investigate disclosures that qualify for protection;
• How the company will ensure fair treatment of employees of the company who are mentioned in disclosures that qualify for protection, or to whom such disclosures relate;
• How the policy is to be made available to officers and employees of the company; and
• Any matters prescribed by the regulations.

What should your business do?

• Ensure your business understands its obligations under the new legislation, including what to do if a protected disclosure is made.

• Public companies, large proprietary companies and proprietary companies that are the trustee of a registrable superannuation entity need to implement a whistleblower policy by 1 January 2020; or
• Create or review the current whistleblower policy to ensure compliance with the new legislation.

Failing to observe whistleblower protections can be costly for businesses with the risk of penalties, including fines. The Victorian Chamber can assist your business to meet its obligations under the Treasury Laws Amendment (Enhancing Whistleblower Protections) Act 2019, contact the Workplace Relation Advice Lineon (03) 8662 5222.