Donations fix damages democracy (5 Feb 2025)
Article summary: The article by Jenna Price critiques the proposed changes to political donation laws in Australia, arguing that they will severely disadvantage independent candidates while benefiting the major parties—Labor and the Coalition. The piece highlights independent MP Kate Chaney’s vocal opposition to the reforms, particularly during a meeting with Special Minister of State Don Farrell. Chaney and other independents believe these changes will make it much harder for community-backed candidates to compete in elections by restricting early funding while increasing the public funding major parties receive per vote from the Australian Electoral Commission (AEC).
The reforms, which could be passed imminently, include raising the per-vote public funding from $3.40 to $5—an advantage that allows major parties to funnel more money into marginal seats while independents remain financially constrained. Price underscores how the existing system already favours the party duopoly through benefits such as tax-deductible donations, exemptions from data protection laws, and access to established infrastructure. Chaney has detailed these inequities, and Price argues that the proposed changes would entrench them further, making it even more challenging for independents to compete fairly.
The article also critiques Labor’s consultation process, with Chaney and ACT Senator David Pocock stating they had not been properly engaged before the government moved forward with negotiations. Price suggests that Labor is aligning with the Coalition to push these reforms through without meaningful independent input. She points out that while donation caps are being discussed, they fail to address broader party advantages such as generic “Vote Liberal” or “Vote Labor” advertising, which do not fall under electorate-specific spending limits.
Another major concern is the growing influence of large donors in Australian politics. Analysis by the Centre for Public Integrity shows that in 2006, the top five donors contributed 20% of all political donations; by 2022, that figure had risen to 70%. The piece highlights key Climate 200 donors like Rob Keldoulis and Marcus Catsaras, who support independent candidates focused on climate action, as a counterbalance to major party funders. Price argues that the increasing concentration of political donations distorts democracy, allowing wealthy interests to buy influence while shutting out grassroots independents.
The article concludes with a call to action, urging voters to push back against these reforms by contacting their local MPs and threatening to support independents if the changes pass. Price frames the debate as a fight for political choice and fairness, arguing that a stronger independent movement is necessary to counterbalance the entrenched power of the two-party system.
