Regrettable references and claims of ‘rigged’ election laws: why this week has reignited Jacinta Allan spill rumours | Victorian politics

Jacinta Allan faced three big tests this week. The way he handled them led some colleagues to speculate about a possible leadership change just months before the Victorian election.
The first came on Monday, when the prime minister responded to a parliamentary inquiry that six months ago recommended sweeping reforms to Victoria’s integrity laws.
Allan agreed to give the Independent Broad-Based Anti-Corruption Commission (Ibac) the power to chase the dollar to investigate the spending of public money by private contractors and subcontractors, as well as a broader definition of corrupt behavior that would make it easier to launch investigations and hold public hearings.
But for some Labor MPs it felt like it was too late.
Ibac is looking for many of these powers for ten years It comes almost two years after allegations of union corruption on Victorian government projects first emerged, followed by a steady stream of damaging headlines about cyclists, drugs and strippers on construction sites.
If Labor wins the November election, the reforms will not be enacted until late 2027. If the opposition wins, it will introduce tracking-the-money powers in December but is not yet committed to changing the definition of corruption.
Some Labor MPs who were not authorized to speak publicly said the prime minister should have taken action months ago, especially after the publication of a report suggesting corruption in unions could cost taxpayers up to $15 billion.
“He could have cauterized an issue that was causing us to lose votes,” one of them said.
The second test involved Victoria’s charity laws, or rather the lack of them. There have been no limits or disclosure requirements on political donations since the high court struck down an entire section of the Election Code in April, removing the previous cap of $4,970 for a four-year period.
Election laws are traditionally negotiated between parties to avoid accusations that one party is rewriting the rules to suit its own interests. But Allan said Labor was forced to strike a deal with the Greens and MPs after negotiations with Liberal leader Jess Wilson and shadow attorney-general James Newbury stalled, imposing a $7,500 donation cap per donor over four years, reintroducing disclosure measures and increasing public funding.
During the debate, the bill was opened to harsh criticism from the opposition, who called it “fraudulent”, “dangerous”, “fake” and “dirty noise”. Deputy Liberal leader David Southwick went further, accusing the government of attempting to “steal the election”.
The coalition claimed Labor would continue to benefit from union membership fees and increased administrative funds. However, union fees cannot be used for campaigning and the Coalition also benefits from an increase in administrative funds.
Although the bill was passed on Friday morning after a marathon debate (the issue will not be resolved), independent candidate Paul Hopper, who along with Melissa Lowe successfully challenged the original laws, said he had engaged lawyers to challenge the new laws and that the Coalition was also considering legal options.
Simon Holmes à Court, founder of Climate 200, argues that the restrictions would disproportionately disadvantage competitors. Independent candidates Sophie Torney and Shima Ibuki, who received significant donations from Climate 200 during a period of uncertainty with no donation laws, have confirmed they will now have to return those funds or risk breaking the law.
“While the major parties are filling their election war chests with taxpayers’ money, this is bankrupting my campaign,” Ibuki said.
The third test for Allan involved the revelation that newly appointed minister Luba Grigorovitch had written 33 character references; some of whom now regret it; These include a taxi driver who assaulted female passengers, two men accused of domestic violence, a supporter of Iran’s former religious leader Ayatollah Ali Khamenei, and a man fined for selling fake clothes.
The opposition pursued the issue relentlessly during the period, trying to link it to Grigorovitch’s friendship with former construction union leader John Setka and calling for his ouster from the cabinet.
As one Labor MP specifically put it: When a Liberal candidate wrote a character reference for a sex offender, his support was being stripped. They called for stronger action against Grigorovitch, but the prime minister said the matter was being addressed after the youth minister, carers and volunteers vowed never to write character references again.
Some MPs said the government was trying to escape a cycle of damaging headlines.
“There is a new drama from week to week,” said one MP.
Another said the prime minister promised last month that the cost-of-living-focused budget would be the “circuit breaker” it needed but “this has yet to happen”.
Poor polling, Allan’s poor personal ratings and some MPs who fear losing their seats combined with growing support for One Nation say Allan’s leadership is at risk again despite the absence of a viable candidate who can unite the party’s left and right factions.
“It’s not too late,” said one MP.




