“With a draft bill in parliament, the Albanese government is taking the first steps in lifting the veil on corporate ownership in Australia,” Moore said.
“But more needs to be done to create a centralised, publicly accessible register of who ultimately owns and benefits from private and public companies in Australia.”
Legislation introduced to parliament last month would increase corporate transparency by creating a register of beneficial owners. But the legislation does not specifically address the issue of nominees.
The Greens spokesperson for economic justice, Nick McKim, said nominees “were letting coal, oil and gas profiteers cash in from the shadows”.
McKim said the Financial Action Task Force, a multilateral organisation that sets standards for corporate transparency, recently found Australia generally was only “partially compliant” with its recommendations on corporate transparency.
“If we had a public beneficial ownership register with teeth, nominee companies would be redundant,” McKim said.
In the UK, nominee companies that hold more than 25% of a company’s shares must disclose who is benefiting. This is not required in Australia.
Nominee companies are not exclusively used to mask investments in the fossil fuel sector. Close to 70% of shares in Australian pharmaceutical company CSL are registered with nominees, according to its latest annual report. About 90% of shares in property developer Mirvac are listed as being nominee companies.
Nominee companies also provide other services to investors including transaction settlement, administration and financial reporting.
Treasury, the treasurer’s office, Citibank, HSBC and JP Morgan were contacted for comment.