Reported by 1 source

The short version

  • One Nation acknowledged using party funds to finance a structure on the private land of executive member James Ashby.
  • The investment targets a micro distillery venture owned by Ashby, Pauline Hanson, and former treasurer Alex Jones.
  • Party leadership projects significant revenue growth from this unconventional business model starting in 2027.

One Nation has formally acknowledged that it utilized party funds to construct a shed valued at approximately $56,000 on the private property of James Ashby. The admission came via an email sent to party members by general manager Kelvin Morton, who explained that the expenditure was part of a broader reinvestment strategy approved by the national executive. This body includes Ashby as a sitting member. The structure is currently occupied by Ashby while he undertakes renovations on his residence in Yeppoon.

The financial transaction involved lending money to Small Batch Brewing Pty Ltd, an entity linked to the party but not owned by it. According to Australian Securities and Investments Commission documents, the company is privately held with equal shares distributed among Ashby, leader Pauline Hanson, and former treasurer Alex Jones. The party stated that the loan covered the establishment costs for both the shed and distilling equipment, which were placed on land owned by an executive member to minimize commercial rent and other outgoings.

News Journal

Morton described the venture as unconventional but defended it by comparing it to business interests held by rival political groups. He pointed to the Labor party’s involvement in licensed clubs and the Liberal party’s association with a software company named Parakeelia as precedents for such investments. The general manager asserted that One Nation is not alone in making these types of financial decisions, framing the move as a standard effort to diversify income streams.

The primary objective of this investment is to generate substantial revenue through alcohol production and sales. Morton indicated that the party anticipates licensing revenues between $400,000 and $500,000 annually once operations are fully established. This projection represents a significant increase from the current average annual alcohol revenue of roughly $105,796. The party currently relies on a contract brewer based on the Sunshine Coast to produce its existing line of alcoholic beverages.

Despite the optimistic financial projections, the operational status of Small Batch Brewing remains preliminary. Ashby previously characterized the entity as non-trading, noting that it lacks a revenue stream and is not yet licensed to manufacture or sell alcohol. The company has engaged liquor licensing consultants to finalize necessary approvals with the Australian Taxation Office and relevant regulatory bodies. Production is not expected to commence until 2027.

The specific amount of money lent for brewing equipment remains unclear, though the initial $56,000 figure pertains specifically to the shed construction. Morton emphasized that the national executive unanimously agreed to the loan structure as a means to reduce costs associated with commercial leasing. The arrangement allows the party to place essential infrastructure on private land owned by a member, thereby avoiding standard market rates for industrial or commercial spaces.

Critics may note the distinction between this arrangement and those cited by Morton. Unlike the examples provided from other parties, Small Batch Brewing is not owned by the party or its controlled trusts. Instead, it is a private enterprise shared by three individuals who hold prominent positions within One Nation. This structure raises questions about the separation between party finances and personal business interests.

The party expressed confidence that members would recognize the business opportunity as a driver for stronger revenue. Morton stated that these funds would assist in financing future campaigns, linking the commercial venture directly to political operations. He also hinted at a special joint partner spirit being released ahead of Christmas, signaling an intent to maintain member engagement through product launches.

As the licensing process continues, the party has promised further updates on the progress of Small Batch Brewing. The timeline for 2027 production suggests a long-term strategy rather than an immediate financial fix. The situation highlights the complex interplay between political fundraising, private enterprise, and regulatory compliance in Australian politics.

The revelation follows earlier reporting that identified Small Batch Brewing as the purchaser of the shed despite its lack of trading activity. This discrepancy between the company’s current status and its future ambitions underscores the speculative nature of the investment. The party’s willingness to front-load costs for a venture with no immediate income stream reflects a high-risk approach to financial sustainability.

Sources behind this briefing

Go to the original reporting

  • The Guardian World↗One Nation admits using party funds to build $56,000 shed on James Ashby’s private property