'Yachts and strippers': laws to curb unexplained wealth

Organised crime bosses and career criminals who spend big on flashy cars and yachts will be stripped of their ill-gotten cash under bolstered laws. 

Legislation introduced into Victoria's parliament on Tuesday would make it harder for criminals to enjoy their unexplained wealth without losing it.

Authorities can already confiscate wealth when police and prosecutors believe it has been illegally acquired.

But the changes capture assets bought in a partner or relative’s name, along with gifts, consumable wealth and wealth that has been gifted, disposed of or expended.

"Organised crime bosses think they can have the fancy cars, flash yachts, spend their money on hotels and strippers," Police Minister Anthony Carbines said.

"If you draw attention to yourself, Victoria Police will be after you and will be able to use their laws to crack down and reclaim those ... ill-gotten gains."

More than 1000 luxury-branded watches and jewellery
Illicit wealth that was gifted to others could also be confiscated.

Under the reforms, prosecutors could apply to a court for an unexplained wealth order if there are "reasonable grounds" to suspect a person's total wealth exceeded what they had lawfully acquired by at least $200,000.

Attorney-General Jaclyn Symes said Victoria Police had complained about barriers to demonstrating a known crook's wealth was directly connected to criminal activity.

"You will have to demonstrate that you obtained it by legal means," she said.

"It's very likely, unless they won TattsLotto and they can show their winning ticket, they probably were doing illegal activities to obtain their wealth."

Victoria's existing laws typically arise after other criminal charges are laid and police look through finances, with the defendants then having to prove their assets are legitimate.

"(With) this, the only difference appears to be that they're facing this outside the realm of an offender or an owner of property having to be subject to a criminal charge," prominent Melbourne barrister Zarah Garde-Wilson told AAP.

"It's a way to access (a) partner's income (and) family members' incomes, because a lot of income is siphoned out of their own personal name to protect it."

The laws would allow a broader range of property to be seized and appeared to be in the public interest, Ms Garde-Wilson said.

However, she cautioned defendants should not be liable for court costs on unsuccessful applications and anticipated prosecutors could have a tough time chasing money that was already spent.

"If the money is not there, the money is not there," she said.

Monash University faculty of law professor Liz Campbell, an expert in organised crime and corruption, said police could opt to pursue unexplained wealth orders against people instead of criminal charges.

"It ostensibly (would be) more straightforward to go down this route due to the burden of proof on the individual and the standard of proof required," Prof Campbell told AAP.

"(They would) still need to obtain adequate evidence, though, which isn't always straightforward." 

The government said a court could order offenders to pay the state the value of anything they cannot prove was lawfully acquired.

Criminals who do not pay in time would not be arrested as it is a civil scheme.

But the state can still take measures to recover the amount, including selling off property and assets restrained under existing powers.

Victoria has modelled the laws on those in Western Australia and they are similar to NSW, which last year boosted police powers to seize and freeze wealth and assets without a specific offence.

Opposition Leader John Pesutto indicated in-principle coalition support for the changes but questioned why the crackdown had taken so long when the government had been in power for 10 years.

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.


Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
AU$10
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
AU$5
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
AU$99
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

SEVEN DAYS FREE
Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store