The battle for the seat of Goulburn is intensifying, with the NSW Liberals asking if Labor candidate Ursula Stephens has accepted an illegal political donation via a discount on her campaign office from a local property owner.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
NSW Planning Minister Pru Goward holds Goulburn on a comfortable margin of 26.8 per cent.
But the ALP reportedly believes the seat is "in play" after its polling last weekend suggested a swing of 20 per cent against the government. Opposition Leader Luke Foley visited Goulburn on Thursday, where he pledged $270 million to upgrade Goulburn Hospital.
Ms Stephens, a former Labor federal senator, is renting a campaign office from local businessman Paul Stamatellis. The office is in prime position in the Goulburn city centre.
Fairfax Media has learned that Liberal state director Tony Nutt wrote to NSW electoral commissioner Colin Barry in November saying he is "advised" that the commercial rent on the premises "is in the order" of $1500 a week.
It was recently advertised at $85,000 per year.
In his letter, Mr Nutt suggests says he is "advised" that Mr Stamatellis is providing a "substantial discount" on the rent to the ALP which "amounts to a political donation".
He says that given the length of the lease - understood to have been taken late last year - there is "a strong possibility" Mr Stamatellis would have breached the funding cap of $5000 to parties per financial year.
Separately, Liberal sources have questioned whether Mr Stamatellis is a property developer for the purposes of NSW election funding laws. Property developers have been banned from donating in NSW election campaigns since late 2010.
On Thursday, Mr Stamatellis denied being a property developer, despite one of his companies being named Lesvos Developments.
"We're not developers, we're commercial property investors," he said.
While he acknowledged the rent being charged to the ALP was less than market price, he argued this was because he had been having difficulty leasing the property for two years.
"We've had vandals in the property," he told Fairfax Media. "The property was to be demolished. We have a DA in place to build a new building."
Mr Stamatellis said when a real estate agent came to him with the opportunity of a short term lease, he jumped at it because "something was better than nothing".
"We're not in bed with anyone," he insisted. "It's not a political donation at all. It's absolutely clutching at straws."
NSW Labor general secretary Jamie Clements said the rental conditions were negotiated directly with the agent and not the owner.
"The property is slated for demolition and has not had a tenant for some years prior to its current, short-term lease," he said.
"The lease terms are confidential, however the local campaign is paying market rent for the property in accordance with the requirements under the Election Funding, Expenditure and Disclosures Act 1981."
