Queensland's corruption watchdog will not investigate allegations Pauline Hanson's chief of staff James Ashby proposed inflating One Nation's electoral expenses so the party could profit from the upcoming Queensland election.
The Crime and Corruption Commission said it had decided not to investigate the allegations against Mr Ashby because he is not a public sector employee in Queensland and, therefore, the matter is not within its jurisdiction.
However, Queensland police and the Australian Electoral Commission have launched probes into the allegations, stemming from a secret recording of a One Nation party meeting last year.
In the recording, Mr Ashby is heard suggesting One Nation might make money by selling campaign material to candidates at inflated prices.
He said they could charge candidates $11 for the campaign posters that cost the party $6 to make.
"We say to the candidates, we will fund 50 per cent of this [printing] package, so the package might be $5,000 -- you're going to pay $2,500 and we'll pay the other $2,500 of the $5,000," he said.
"The other $2500 is the profit."
He was also heard to say "I will deny I ever said this."
He has since said he regrets his choice of words but described the conversation as a brainstorming session.
Mr Ashby has himself made a complaint to police over the leaking of the recording.