Pauline Hanson’s One Nation is facing fresh scrutiny after Queensland’s corporate regulator warned the party’s state division could lose its legal status unless it urgently submits three consecutive years of audited financial statements.

The Queensland Office of Fair Trading (OFT) has directed One Nation Queensland Division Inc to provide audited financial statements covering the 2022–23, 2023–24 and 2024–25 financial years by 18 August. The documents are required under the Associations Incorporation Act 1981, which governs incorporated associations operating within Queensland.

If the party fails to comply by the deadline, the OFT has indicated it may commence a formal investigation before issuing a “show cause” notice that could ultimately result in the cancellation of the organisation’s incorporation. While such a move would not automatically dissolve One Nation as a registered political party, it would strip its Queensland division of its incorporated legal status and could require a significant organisational restructure.

The latest dispute centres not on electoral funding lodged with the Australian Electoral Commission, but on financial reporting obligations that apply to incorporated associations in Queensland.

According to the regulator, One Nation lodged overdue annual returns earlier this year covering multiple financial years, but those returns did not include the audited financial statements required under state law. As a result, the organisation remains in breach despite partially updating its paperwork.

The Queensland division is particularly significant because it is the home branch of the party founded by Pauline Hanson nearly three decades ago.

Senator Hanson is listed as the division’s president, while fellow One Nation senator Sean Bell serves as secretary. Both office holders could potentially face financial penalties if compliance obligations are not met. Treasurer Alex Jones, another senior party official, has also come under scrutiny over the outstanding filings.

Despite the regulator’s warning, One Nation says it is working to resolve the matter.

A party spokesperson said the missing audited accounts were being finalised and attributed the delays to significant staff turnover and administrative challenges within the organisation. The party has indicated it intends to provide the outstanding financial statements before the regulator’s deadline.

The issue has nevertheless provided political opponents with fresh ammunition against One Nation, which has frequently campaigned on promises of accountability, government transparency and stricter compliance across the public sector.

Critics argue political parties seeking public office should themselves demonstrate full compliance with financial reporting laws, particularly where statutory deadlines have been missed over several consecutive years.

The controversy also revives broader questions that have surrounded One Nation’s financial governance in recent months.

Earlier reporting examined the party’s financial records and highlighted concerns raised by governance experts over accounting practices, delayed reporting and more than $1 million in assets whose value had been questioned. Those reports prompted renewed examination of the party’s internal administration but did not themselves result in regulatory action.

Queensland’s incorporated associations legislation requires organisations to maintain appropriate financial records and, depending on their size and revenue, obtain independent audits before lodging annual financial statements.

These requirements are designed to ensure organisations remain financially accountable to members and regulators while providing confidence that funds are being managed appropriately.

Failure to comply does not automatically result in deregistration.

Instead, the Office of Fair Trading generally follows a staged enforcement process beginning with requests for compliance, followed by investigations where necessary and, ultimately, potential cancellation of incorporation if breaches remain unresolved.

Legal experts note that cancellation of incorporation would not remove One Nation from Australian politics overnight.

The party’s registration for electoral purposes is governed separately by the Australian Electoral Commission, meaning its ability to contest elections would not necessarily end because of action taken under Queensland associations law.

However, losing incorporated status in its home state would represent a significant reputational setback for a party that has enjoyed renewed electoral momentum over the past year.

Recent opinion polling has shown increased support for One Nation nationally, while the party has expanded its parliamentary representation following recent federal and state elections.

That stronger political position has placed greater attention on its organisational structure, financial management and internal governance.

The Queensland division has historically been central to One Nation’s identity.

Founded by Pauline Hanson in the late 1990s, the party first emerged in Queensland before expanding nationally, becoming one of Australia’s most recognisable minor political parties.

Over nearly three decades, it has experienced periods of rapid electoral success, internal disputes, court battles and organisational restructuring, yet has remained a persistent force in Australian politics.

The current dispute is administrative rather than ideological, but it arrives at a politically sensitive time.

One Nation has recently attracted significant media attention through policy proposals covering immigration, national security, energy, cost-of-living pressures and constitutional reform.

Against that backdrop, questions over financial compliance risk distracting from the party’s broader political agenda as Parliament prepares to resume.

The Office of Fair Trading has not indicated whether it expects enforcement action will ultimately be necessary, instead confirming that the organisation has until 18 August to satisfy its legal obligations.

If the missing audited financial statements are lodged within that timeframe and meet statutory requirements, the immediate compliance issue could be resolved without further regulatory action.

If they are not, the regulator has the power to escalate the matter through formal investigation and potential enforcement proceedings, including the possibility of cancelling the Queensland division’s incorporation.

For Pauline Hanson and One Nation, the coming weeks are therefore likely to determine whether the matter remains an administrative compliance issue or develops into a broader legal and political challenge.

Regardless of the eventual outcome, the case underscores the importance of financial governance requirements that apply to political organisations alongside the policies they advocate.