New South Wales' anti-corruption watchdog, ICAC, opened a public inquiry on 27 July 2026 into alleged breaches of electoral funding laws by a factional group within the NSW Liberal Party called the 'Reformers.' Counsel assisting Peggy Dwyer SC told the commission the group allegedly solicited or accepted donations from prohibited donors, in undeclared amounts or above legal caps, to fund party member recruitment and renewals. The investigation, formally known as E22/1018, covers possible offences under the NSW Electoral Funding Act and is scheduled for eight weeks of public hearings (ICAC).

On Day 2, 28 July 2026, the inquiry heard evidence that federal opposition leader Angus Taylor was discussed as a potential financial backer of the Reformers. A March 2021 message from Dallas McInerney, chief executive of Catholic Schools NSW and a factional ally of Taylor, was shown to the commission referencing 'shaking down Angus for 10k' in connection with Reformers activity. A second message, allegedly sent by former NSW Liberal staffer Dylan Whitelaw, stated that McInerney had secured a '$15k injection plus a $3k monthly donation' commitment from Taylor (The Guardian).

Whitelaw, an associate of the Reformers, gave evidence on 28 July 2026. He testified that he assumed the 'Angus' in the messages referred to the federal opposition leader. However, Whitelaw told the commission he did not recall sending the messages about Taylor's donations and said he would be 'very surprised' if Taylor had made any financial contribution. Whitelaw also testified that Taylor was aware of the Reformers' activities, though 'not in much detail' (The Guardian).

A spokesperson for Angus Taylor stated that the opposition leader was 'not a party to the matters before the commission, nor has he been approached' (The Guardian). ABC News separately reported that NSW Liberal figures discussed seeking financial backing for the right-wing faction from Taylor during the period under examination (ABC News).

Dallas McInerney offered to step aside from his role at Catholic Schools NSW, as reported by the Sydney Morning Herald on 2 July 2026, ahead of the public hearings. Hotelier Michael O'Hara, who is prohibited from making political donations under NSW law, completed his evidence on the morning of 28 July 2026 (The Guardian).

The hearings have also surfaced separate claims by Jean Nassif regarding his influence over the NSW Liberal Party. NSW Opposition Leader Kellie Sloane publicly addressed the 'Nassif ICAC tapes' in connection with the proceedings. A complaint from a 'Mr Blackmore' was also incorporated into Operation Rosny due to similarities between the conduct he reported and the conduct already under ICAC investigation (Daily Telegraph).

The first day of hearings on 27 July 2026 ran in two sessions, from 10:00am to 1:06pm and from 2:15pm to 4:04pm, producing 108 pages of transcript. ICAC has published an exhibit list and is uploading daily transcripts to the Operation Rosny investigation webpage (ICAC). The inquiry, publicly listed with an effective date of 1 July 2026, continues.

The broader context here is the vulnerability of state party structures to factional takeover through gaps in electoral funding rules. NSW law sets caps on how much donors can give and bars certain donors, such as property developers, from giving at all. Operation Rosny is examining whether the Reformers systematically got around those caps and prohibitions to manipulate internal party machinery, specifically membership rolls. Think of it as a group allegedly using outside money to pack a party's membership base with sympathetic voters, which can shift who wins internal preselections and leadership contests. The naming of a federal opposition leader, even through the testimony of an associate who says he does not remember the relevant messages, raises the political stakes considerably. For the federal Coalition, the inquiry creates a direct line from NSW factional dynamics to the leadership of the federal parliamentary party. How Taylor and his office respond, and whether the commission seeks further evidence from him or McInerney, will be closely watched as the eight-week hearing schedule unfolds.