Australia re-enters Top 10 in Global Corruption Rankings: Implications for organisations and governance

Australia has re-entered the top 10 most transparent nations in Transparency International’s annual Corruption Perceptions Index (CPI), achieving a score of 77 out of 100. This significant improvement – Australia's first top 10 finish since 2016 – reflects renewed momentum in integrity and anti-corruption reforms.

The CPI assesses perceived levels of public sector corruption in 180 countries. Australia’s performance improvement has been attributed to major integrity reforms in 2024, including the establishment of the National Anti-Corruption Commission (NACC) and strengthened anti-money laundering and foreign bribery laws. These reforms are vital to ensuring fair and transparent governance frameworks, which are critical for business confidence and the rule of law.

Insights from Transparency International Australia

Clancy Moore, CEO of Transparency International Australia, said:

“The evidence is clear. The government’s positive integrity reforms show Australia is turning the corner in the fight against corruption. But the risk to our democracy remains.”

Mr Moore noted the ongoing challenges of “dark money” in political donations and the role of paid lobbyists in influencing decisions, urging vigilance and further reforms.

Professor A J Brown AM, Chair of Transparency International Australia, added:

“Amid the challenges, there is hope. The federal parliament’s reform record of the past three years is a big step in the right direction against a global cloud of darkness in the fight against corruption.”

He also called for the creation of a dedicated Whistleblower Protection Authority – a step that would reinforce the integrity framework for organisations and individuals prepared to report wrongdoing.

Practical implications for Australian organisations and governance

These developments signal both progress and ongoing challenges in the regulatory environment. Organisations should consider the following key areas to strengthen their compliance and governance frameworks:

Compliance expectations: Enhanced scrutiny of political donations, lobbying practices, and third-party relationships is expected to continue shaping the compliance landscape, requiring organisations to adopt proactive measures to address these risks. Boards should ensure they are actively overseeing anti-corruption measures, including reviewing governance frameworks and providing regular, tailored training for directors, management, staff, and contractors on corruption risks and compliance obligations.

Whistleblower protections: Businesses should review and, if necessary, strengthen their whistleblower policies in anticipation of further legislative reforms in this area. Policies should ensure robust protections, clear reporting mechanisms, and effective follow-up processes to investigate and address reported concerns.

Due diligence and transparency: Organisations involved in cross-border or high-risk sectors should reassess their foreign bribery risks, compliance programs, and response plans. Strengthening due diligence practices, such as enhanced vetting of third parties, regular audits, and ongoing risk assessments, is essential to ensure compliance with evolving anti-bribery and corruption laws. Additionally, organisations should assess their supply chains for potential corruption risks, particularly in high-risk jurisdictions, and implement measures such as enhanced contract management, supplier audits, and real-time monitoring of third-party relationships to improve transparency.

Data and technology risks: With the increasing use of technology in compliance programs, organisations should ensure robust data governance and cybersecurity measures are in place to protect sensitive information related to anti-corruption efforts. Leveraging technology effectively, such as through automated compliance tools, data analytics, and artificial intelligence, can also enhance the efficiency and accuracy of compliance monitoring and reporting.

Sector-specific risks: Certain industries, such as construction, mining, energy, healthcare, defence, financial services, real estate, and telecommunications, face heightened corruption risks. Tailored compliance programs and sector-specific risk assessments are essential for organisations to address unique vulnerabilities, meet regulatory expectations, and mitigate reputational risks.

While Australia’s CPI score remains below its 2012 peak of 85 out of 100, these improvements indicate a positive trajectory. However, they also serve as a reminder for organisations to remain vigilant about governance risks and to prioritise robust compliance measures.

Businesses should anticipate continued regulatory focus on transparency and accountability. Proactively implementing robust compliance measures, fostering a culture of integrity, and engaging leadership at all levels will be critical to mitigating risks.