The Albanese government’s planned changes to rules governing political donations are long-overdue reforms that should introduce more transparency into the murky world of political access and influence.
A cap is expected to be imposed on donations and an individual, company or third-party group who can currently contribute unlimited funds to a campaign will be banned from giving huge sums to parties. The Herald’s Paul Sakkal reports that the government had not landed on a precise figure for the cap, but it is likely to be in the tens of thousands of dollars. A limit will also be imposed on the amount of money to be spent in each electorate. If accepted, the reforms are expected to severely limit the ability of rich and powerful Australians to overtly influence our politics and stop the unseemly cascade of millions of dollars as seen in the electorate of Kooyong in 2022 when former treasurer Josh Frydenberg attempted to keep teal independent Monique Ryan at bay.
The $7.1 million Clive Palmer’s Mineralogy tipped to the United Australia Party at the last election returned one Senate seat.Credit: Scott McNaughton
These are the first reforms since the Howard government eased laws governing political donations in 2006. Labor will shortly begin briefing MPs. The changes will mirror similar changes in Canada and parts of Europe but are expected to be problematic for Coalition, Greens and independent MPs who fear the new laws may make it more difficult to win elections.
Political donations by the mega-rich are twin-edged blessings that can make or break. Last election, Clive Palmer’s mining company, Mineralogy, tipped $7.1 million to the United Australia Party that he founded for a return of one Senate seat, but the $117 million he reportedly poured into the 2019 election is generally regarded as ruining Bill Shorten’s Labor campaign. Meanwhile, the $1.2 million Mike Cannon-Brookes gave to Climate 200-backed independents saw six elected to the lower house, along with one senator and the re-election of four MPs. The head of plastic packaging company Visy, Anthony Pratt, has donated $15.9 million since 1998 with the Coalition getting $10.1 million and Labor $5.5 million. And then there is Malcolm Turnbull’s personal $1.6 million donation to the Liberals in 2016 that helped the Coalition win and, for him, to keep his job as prime minister.
Australian Electoral Commission figures show major parties reported $210.7 million in donations and other receipts in 2022-23. This includes fees to attend the parties’ business forums, public funding from the AEC and other payments. The mooted changes will not only curtail the donations of rich and powerful individuals, but the government will also introduce measures to capture unions and other third-party campaigners in the cap.
The High Court has struck down previous attempts to impose caps on political donations on the grounds they breached freedom of political communication and mining billionaire Palmer, a veteran of several high-profile legal suits against state and federal governments, is already considering a challenge. “It is worrying that Labor wants to silence the diversity of ideas in this country,” Palmer said. “Advertising allows all political parties to express their ideas.”
Needing partisan support, the government is holding off reform until after the next election to avoid claims Labor is gaming the system. But it is concerning that there is no indication of how the legislation would deal with party affiliation fees paid by unions which are spent on administrative costs – such as holding conferences – and unrelated to elections.
The Herald has been advocating reform of campaign financing law for years, and it is heartening to finally see some movement. The devil will be in the detail but the move to reduce limits and improve transparency is a step in the right direction.
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Reforms to political donations laws long overdue
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13.03.2024
The Albanese government’s planned changes to rules governing political donations are long-overdue reforms that should introduce more transparency into the murky world of political access and influence.
A cap is expected to be imposed on donations and an individual, company or third-party group who can currently contribute unlimited funds to a campaign will be banned from giving huge sums to parties. The Herald’s Paul Sakkal reports that the government had not landed on a precise figure for the cap, but it is likely to be in the tens of thousands of dollars. A limit will also be imposed on the amount of money to be spent in each electorate. If accepted, the reforms are expected to severely limit the ability of rich and powerful Australians to overtly influence our politics and stop the unseemly cascade of millions of dollars as seen in the electorate of Kooyong in 2022 when former treasurer Josh Frydenberg attempted to keep teal independent Monique Ryan at bay.
The $7.1 million Clive........
© The Sydney Morning Herald
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