Company directors and corporate lawyers have pushed back against moves to protect whistleblowers who take their complaints public, saying claims of misconduct should be reported internally or to a government regulator. 

The Australian Institute of Company Directors, which represents 39,000 company directors and senior business leaders, says new whistleblower protections currently being considered by the government should not extend to disclosures made to "third parties", including the media, members of parliament and union representatives. 

It comes in the wake of a series of banking and wage fraud scandals exposed by the media that have rocked the corporate sector and lead to a number of government inquiries, including ones examining the failure of the regulator to investigate claims. 

A Senate inquiry is underway to examine whistleblower protections in the corporate, public and not-for-profit sectors. 

Government regulators, experts and advocacy groups have all called for greater protections for whistleblowers, including a compensation scheme and legal protection from reprisals. 

But in questions on notice to the inquiry, the AICD said it did not support extending protections to whistleblowers who go public. 

"Although there may be merit in considering extending protections to third parties in extraordinary circumstances, whether such an amendment is desirable will hinge on the detail of the model proposed and further consultation is necessary," it said. 

The lobby group also rejected calls to make public information about whistleblower disclosures to the regulator, saying there was "no need for this to happen" and that it would create "substantial regulatory burden".  

Rani John, a partner for law firm DLA Piper Australia, which advises a third of ASX 100 companies and their subsidiaries, went further to tell the hearing the media "prejudiced" claims of misconduct. 

"My concern about the media in particular is that lack of capacity to mutually and forensically investigate an allegation that might have a huge number of complexities," Ms John said. 

Labor Senator Deborah O'Neill interrupted: "We're at this point because reports to the regulators have failed, and its only reports to media and union that have lead to the exploration to some incredibly damaging practices in some of our biggest corporations."

Ms John said: "What happens when information goes to the media is that stories get published with a certain slant."

"If there is an investigation... That slant has already occurred, there's a potential to prejudice the effective investigation."  

Maurice Blackburn partner Josh Bornstein, who has represented bribery and wage fraud whistleblowers, said Australia's whistleblower protections were an embarrassment within the G20 and out of step with the standards the community should expect. 

"The laws are best described as 'a dead letter'- legislation that sits on the statute books that no one uses because it is literally useless," he said.