Labor to make last-ditch offer to Coalition and crossbench to pass contentious electoral reforms (8 Feb 2025)
Article summary: The Albanese government is making a last-minute effort to pass its electoral reform bill after criticism from independent MPs that the proposed spending caps would disadvantage new independent candidates.
Special Minister of State Don Farrell is considering amendments to increase spending and donation caps, though the extent of potential changes remains uncertain. Under the current proposal, independent candidates would have a campaign spending cap of $800,000 per electorate, while federal political parties would have a cap of $90 million. The bill also proposes capping individual donations at $20,000 and increasing public funding for candidates from $3.35 to $5 per vote.
Independent MP Allegra Spender previously proposed an amendment to increase the spending cap for non-incumbent independents by 150%, allowing them to spend up to $1.2 million instead of $800,000. This amendment was rejected, and Spender has since criticised Farrell for failing to engage with crossbench MPs, stating that “Minister Farrell hasn’t been in touch with me over the summer to discuss electoral reform” and that he “couldn’t even be bothered to show up to brief the crossbench when the bills were introduced to the house last year.”
Goldstein MP Zoe Daniel also expressed frustration, arguing that the government’s consultation efforts were merely performative. “I think by saying they’ve consulted with the crossbench, they’re trying to create the illusion of due process,” she said. “But the outcome will be that the public will pay more for elections in return for less choice, so from a democracy point of view, it’s a complete stitch-up.”
Kate Chaney has been actively involved in discussions regarding the bill, meeting with Farrell alongside independent senator David Pocock on Monday. She later attended a departmental briefing on Thursday but reported that it yielded little progress. Chaney has raised concerns that the bill does not address key advantages enjoyed by major parties, which allow them to shift campaign spending to benefit their candidates disproportionately.
“I met with the department staff on Thursday and they confirmed that none of these 13 party advantages have been addressed in the legislation,” she told Guardian Australia. “The big problem with it is that if you’ve got national TV advertising, that can be paid for out of [an] unwinnable seat … so parties can spend twice or three times as much as an independent just saying vote Liberal or vote Labor.”
Independent senators Pocock and Jacqui Lambie have also criticised the bill’s proposed $800,000 cap, arguing it is unrealistic for independents to run a successful campaign with such a restriction. While independents have suggested splitting the bill—supporting the provisions for real-time donation disclosures while continuing negotiations on spending caps—Farrell has reportedly rejected this proposal.
The government was close to securing a deal with the Coalition in December, which independents had described as a “stitch-up,” before Labor abruptly withdrew the bill. Farrell has since re-engaged with crossbench MPs, but concerns persist that the bill would reinforce a two-party system and limit the competitiveness of independent candidates.
Related article: Donations fix damages democracy (5 Feb 2025)
