One Nation used party funds to build $56,000 shed on James Ashby's private property

One Nation has admitted using party funds to build a $56,000 shed on James Ashby’s private property.

Guardian Australia revealed on Monday that a company linked to One Nation – Small Batch Brewing Pty Ltd – was the purchaser of the shed on Ashby’s property despite having no revenue stream and not being licensed to make or sell alcohol.

Ashby is living in the shed on his Yeppoon property while he undertakes renovations.

In an email sent to members on Thursday night, the party’s general manager, Kelvin Morton, said party funds had been used to build the shed.

He said the party’s national executive – on which Ashby sits as a member – had approved a “reinvestment package” into Small Batch Brewing to establish a micro distillery.

He told members that the party hoped to make money out of the “unconventional” business venture as early as next year.

“In an effort to minimise costs, including commercial rent and outgoings, it was unanimously agreed that One Nation would loan Small Batch Brewing the establishment costs for a shed and distilling equipment, which could be placed on land owned by a member of the executive,” the email from Morton to members said.

It is unclear how much money has been lent to the entity for brewing equipment.

“While Small Batch Brewing may appear on the surface as unconventional, One Nation are not alone in our investment decisions,” Morton said.

He pointed to the Labor party’s interests in licensed clubs and the Liberal party’s software company Parakeelia as similar ventures.

But, unlike these arrangements, Asic documents show that Small Batch Brewing Pty Ltd is not owned by the party or party-controlled trusts. Instead, the company is privately owned by Ashby, Hanson and the party’s former treasurer Alex Jones, who are equal shareholders.

Morton said the party anticipated making licensing revenue of between $400,000 and $500,000 a year based on projected sales, which was a “significant increase” in alcohol revenue from its current average of $105,796.00 each year.

The party now uses the contract brewer CAVU based on the Sunshine Coast to make its line of alcohol products.

“We are confident that our members will see the business opportunity that will drive stronger revenue and assist in the funding of future campaigns,” Morton said.

“Small Batch Brewing has engaged liquor licensing consultants to finalise licensing and ATO requirements before commencing production in 2027 …

“We look forward to providing you further updates on the progress of Small Batch Brewing and anticipate a special joint partner spirit ahead of Christmas.”

Ashby previously told Guardian Australia that Small Batch Brewing was “currently a non-trading entity”.

“The business will go through the necessary licensing application and approval process when the time is right,” he said.