Billionaire James Packer's $150,000 donation to Advance a 'worrying' sign for Liberals

Billionaire James Packer's little-noticed donation to conservative lobby group Advance has prompted concern about a shift of money from the Liberal Party in favour of conservative "ideological" groups.

Liberal MPs speaking on condition of anonymity have also told the ABC an emboldened conservative flank is trying to further assert its influence, including a reported push by former prime minister Tony Abbott for Advance's executive director, Matthew Sheahan, to be installed as the head of the NSW Liberal branch.

That proposal was reportedly rejected.

A spokesman for Mr Abbott said those claims were completely false, and called for "those MPs who fabricated the claims not to hide behind the cover of anonymity".

"It's also worth noting that Matthew Sheahan does not reside in NSW," the spokesman said.

Mr Packer donated $150,000 to Advance through his investment vehicle, Consolidated Press Holdings Ltd, his first since a $16,500 contribution to the Liberal Party 12 years ago.

The July 2024 donation was revealed in Australian Electoral Commission data published last month, but went almost unnoticed.

Mr Packer was widely reported to have fallen out with the Liberal Party around the time his donations to the Liberals ceased.

But the donation to Advance, which opposes "mass immigration", opposes a net zero climate policy and campaigns to "save Australia Day" from activists, has caused worry about a shift by some business figures towards conservative rivals of the Liberals.

Insiders said the shift was "a bad sign for the Liberal Party" that some business interests were being drawn to Advance over the Liberal Party.

"I think some of those big types in money are looking for something they recognise as conservative," one Liberal said.

They noted that Frank Packer, James Packer's grandfather, was once one of the biggest backers of Liberal icon Robert Menzies.

Another Liberal said it was "a worry" that donors like Mr Packer and mining magnate Gina Rinehart were backing "not a party but an ideology".

While Advance has supported conservative Liberals, it is aligned with, some MPs said it had also undermined other Liberals.

The lobby group's receipts have grown from $2.4 million in 2018-19, when it was established, to $13.5 million last financial year.

In a statement, Advance said it does not comment to the media on donors or supporters.

"Advance is registered with the AEC as an independent third-party campaign organisation and has no relationship with the Liberal Party. Mr Sheahan has never been a member of any political party," it said.

With more money flowing into Advance, successes by similar groups such as Reform UK, and the recent toppling of Sussan Ley by National Right figure Angus Taylor, some Liberals say the group has become more emboldened and is attempting to assert its authority.

And with One Nation outpolling the Liberals in a series of recent polls, the party is contending with how to fend off the conservative threat.

Internally, there is debate over whether the Liberal Party should employ a Howard-era policy of advising voters to put One Nation last in preferences, or to enter into a preference deal with Pauline Hanson's party.

A decision will be needed before the Farrer by-election triggered by Ms Ley's resignation.

Liberals with close ties to Advance, including Mr Abbott and leadership aspirant Andrew Hastie, have expressed openness to preference deals being done with One Nation.

"I am fine with that. Back in May, I reached out to my One Nation candidate — he's a good guy — Fernando Bove, down here in Mandurah. I've got a lot of time for him, his girls work for the local Thai restaurant," Mr Hastie told Sky News on Sunday.

"These are normal Australians, and I am happy to work with anyone on the centre-right who is willing to deliver outcomes for Australians."

But one MP said there was an awareness that Advance's interests did not always align with the Liberal Party's.

Advance said in relation to the Farrer by-election it encouraged "all right of centre parties to collaborate to ensure the defeat of Labor, Greens and Teal candidates".

The ability of individuals to influence politics with money will become more constrained from July, when new political donation laws begin.

Those laws will limit the maximum donation to a candidate or party by an individual to $50,000, though branches will count separately, meaning a donor could contribute $450,000 to parties with a full federal structure.