Tough road for donation cap (13 July 2024)
Article summary: Don Farrell, Australia’s Special Minister of State and Trade Minister, is set to introduce significant reforms to the country’s Federal electoral laws, aiming to place caps on donations and spending for Federal elections and ensure more timely disclosure of financial flows. Despite extensive discussions and constitutional challenges, these changes, intended to address the increasing influence of big money in politics, are unlikely to be in place for the upcoming election in May next year.
The reforms align with the majority of recommendations from the Joint Standing Committee on Electoral Matters and include a minimalist “truth in advertising” measure. However, it’s uncertain how much of the package will pass through Parliament. Key components of the legislation include caps on donations of $1000 or more, which must be disclosed, and spending limits for parties and candidates at various levels. The proposed cap per candidate is set to be under $1 million.
WA teal MP Kate Chaney, a prominent figure in electoral issues, has voiced concerns about the reforms potentially hindering future competition. Victorian teal Zoe Daniel is wary that the major parties might disguise self-serving proposals as genuine reform. Farrell’s package aims to curb the excessive spending seen in recent elections, such as Clive Palmer’s $123 million outlay in the last election.
The legislation also proposes an increase in public funding and measures to regulate third-party spending by unions and advocacy groups. All election-related donations and expenditures would need to be managed through dedicated Commonwealth campaign accounts, subject to Australian Electoral Commission audits. While real-time donation disclosures are part of the reforms, their implementation might not be feasible before the 2025 election due to the Australian Electoral Commission’s preparation requirements.
Farrell, known for his pragmatic approach within Labor’s right faction, faces a challenging parliamentary journey for these reforms. If he doesn’t secure substantial progress during this term, future negotiations could become even more complex, especially if the Albanese Government is re-elected with a reduced majority.
