NSW ICAC inquiry into Liberal Party's Reformers faction and alleged illegal donations

Consensus Summary

The Independent Commission Against Corruption (ICAC) is investigating allegations that a conservative faction within the NSW Liberal Party, known as the Reformers, solicited illegal donations to recruit and retain members in a practice called branch stacking. Central to the inquiry is Jean-Claude Perrottet, the 29-year-old younger brother of former NSW premier Dominic Perrottet, who testified before ICAC on Wednesday, August 2026. Perrottet admitted to performing factional duties for the Reformers while employed by Liberal MP Damien Tudehope, including recruiting and renewing Liberal Party members during work hours. The inquiry has also focused on the financial ties between the Reformers and Catholic Schools NSW, where Perrottet was employed and later made redundant in June 2026, just before the hearings began.

The allegations against the Reformers first surfaced in a 2022 parliamentary speech by Liberal MP Ray Williams, who accused disgraced developer Jean Nassif of funding Liberal operatives in exchange for favorable outcomes. Dominic Perrottet, then the premier, referred the matter to ICAC two days later. A parliamentary inquiry followed in 2023, but the issue faded after Labor won the state election that year. The ICAC’s Operation Rosny, which has been running for about four years, is now examining whether illegal donations were used to influence preselections and push conservative policies on issues like same-sex marriage, abortion, and euthanasia. The inquiry has also revealed connections between the Reformers and Catholic Schools NSW, where CEO Dallas McInerney is accused of funneling school funds to a Reformers-linked lobbying group.

Key figures in the inquiry include Jean-Claude Perrottet, who has denied wrongdoing but admitted to engaging in factional work while employed by Tudehope; his older brother Charles, who is also a person of interest; and Damien Tudehope, who admitted leaking a confidential draft report from the 2023 parliamentary inquiry to fellow Reformer Jeremy Greenwood in February 2023. Tudehope, who has nine children, described Jean-Claude Perrottet as having a 'talent' for recruiting members, though he claimed he was unaware of the extent of Perrottet’s factional activities. The inquiry has also highlighted the close-knit nature of the Reformers, with many members connected through family ties, shared employment at Catholic Schools NSW, and attendance at the same schools, such as Redfield College.

While the articles largely agree on the core facts, there are differences in emphasis and detail. The SMH provides extensive background on the Perrottet family, including their 12 children and their connections to Catholic Schools NSW, while the Guardian and ABC focus more on Jean-Claude Perrottet’s testimony and the financial allegations. The SMH also includes specific text messages and jokes exchanged between Reformers, such as references to recruits being 'Asian, Korean, and rest Wog' and the 'only problem Reformers sign-ups would ever have' being a nun. The ABC highlights Jean-Claude Perrottet’s emotional state during testimony, including his use of rosary beads and his frustration at not being paid for his factional work, while the Guardian emphasizes the financial contributions allegedly made by Damien Tudehope and his business partner Michael O’Hara.

The inquiry is expected to continue for eight weeks, with Jean-Claude Perrottet set to return as a witness on Thursday. Another brother, Charles Perrottet, is also expected to testify. While Dominic Perrottet remains unaccused, the inquiry has already revealed a web of connections between the Reformers, Catholic Schools NSW, and Liberal Party operations. The unresolved question is whether the financial ties and factional activities constitute illegal conduct under NSW election laws. The Liberal Party’s leader, Kellie Sloane, has indicated she will reserve judgment on Damien Tudehope’s future until the inquiry concludes, though he has already stepped aside from his shadow cabinet roles.