Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2023
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
Commonwealth Electoral Amendment (Lowering the Donation Disclosure
Threshold) Bill 2023
EXPLANATORY MEMORANDUM
and
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Circulated by authority of
Rebekha Sharkie MP
COMMONWEALTH ELECTORAL AMENDMENT (LOWERING THE DONATION
DISCLOSURE THRESHOLD) BILL 2023
OUTLINE
The Commonwealth Electoral Amendment (Lowering the Donation Disclosure Threshold)
Bill 2023 amends the Commonwealth Electoral Act 1918 ("the Act") to lower the current
political donation threshold from $16,300 per annum (2023-24) to $1,000, and to remove
ongoing indexation of that threshold.
Currently, political parties are only required to provide the Australian Electoral Commission
('AEC') with an annual return which provides details of donations received over the
disclosure threshold of $13,800 (indexed under section 321A of the Act at $16,300 for the
2023-2024 financial year).
The Bill also newly provides that donations include gifts. The definition of 'gift' is expanded
to include electoral expenditure and gifts-in-kind to a political entity, where the value of the
gift is equal to or more than $1,000 and provided without consideration or with inadequate
consideration. The Bill also expands the definition to include amounts paid to attend
fundraisers or functions.
FINANCIAL IMPACT
The bill will have no financial impact.
NOTES ON CLAUSES
Clause 1: Short Title
1. Clause 1 is a formal provision specifying the short title of the Bill, once enacted, to
be cited as the Commonwealth Electoral Amendment (Lowering the Donation
Disclosure Threshold) Act 2023.
Clause 2: Commencement
2. Clause 2 provides for the commencement of the Act on the next 1 July after Royal
Assent.
Clause 3: Schedules
3. Clause 3 provides that each Act specified in a Schedule to this Act is amended or
repealed as set out in the applicable items in the Schedule.
Schedule 1 - Amendments
Commonwealth Electoral Act 1918
Item 1 - Subsection 287(1) (definition of disclosure threshold)
4. Item 1 repeals and substitutes the current definition of the disclosure threshold,
changing it from $13,800 ($16,300 as indexed) to $1,000.
Item 2 - Subsection 287(1) (definition of gift)
5. Item 2 repeals the current definition of gift in the Act and replaces it with the
definitions provided by item 3 in this Schedule.
6. The Act currently defines a gift as a disposition of property to another without
consideration or with inadequate consideration, including provision of services other
than volunteer labour. The definition excludes payment of electoral officer
remuneration, annual subscriptions to a political party, and visits etc for the
purposes of a political exchange.
Item 3 - After section 287
7. The section 287AAA definition of gift retains disposition of property to another
without consideration or with inadequate consideration, including provision of
services other than volunteer labour. It also retains current exclusions of payment of
electoral officer remuneration, annual subscriptions to a political party, and visits etc
for the purposes of a political exchange.
8. Section 287AAA expands the general definition of gift to include the provision of
professional services by an individual member of that profession without
consideration or with inadequate consideration. It also newly includes amounts paid
to attend fundraisers or functions. This aims to address the perception that access
to politicians and political influence can be 'purchased' by those who can afford to
pay to attend such party/political fundraisers or functions.
9. Sections 287AAB and 287AAC also extend the definition to cover both gifts to
political entities and Members of Parliament and expand the definition of gift beyond
monetary donations. The sections newly include electoral expenditure or gifts-in-
kind valued at more than $1,000, and without consideration or with inadequate
consideration, including such a gift given by a person on behalf of an
unincorporated association, for the dominant purpose of promoting a political entity
or a member of the Commonwealth Parliament to political office. Things are
excluded which would otherwise be considered a gift or gifts if the political entity
does not know and their lack of knowledge is reasonable in the circumstances.
10. Subsection 287AAB(4) recognises the potential for overlap between state and
federal political entities. It stipulates that, for the purpose of disclosure, the gift is
taken to be given to either the State branch, or the candidate endorsed by a party,
or a member of a group, but not all three.
Item 4 - Subsection 314AC(2)
11. Item 4 repeals subsection 314AC(2) to provide that aggregated donations, once
they reach or exceed the donation threshold, must be provided as a return to the
AEC.
Item 5 - Section 321A
12. Item 5 repeals subsection 321A to remove provision for indexation of the political
donation threshold so that it will remain at $1,000.
Item 6 - After subsection 384(1)
13. Item 6 provides for a corporate multiplier so that a penalty of not more than five
times the pecuniary penalty specified for the civil penalty provision may be imposed
upon a body corporate that has contravened that provision.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Commonwealth Electoral Amendment (Lowering the Donation Disclosure
Threshold) Bill 2023
This bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
Overview of the bill
The Commonwealth Electoral Amendment (Lowering the Donation Disclosure Threshold)
Bill 2023 amends the Commonwealth Electoral Act 1918 ("the Act") to lower the current
political donation threshold from $16,300 (as indexed) to $1,000, and to remove ongoing
indexation of that threshold.
Currently, political parties are only required to provide the Australian Electoral Commission
('AEC') with an annual return which provides details of donations received over the
disclosure threshold of $13,800 (indexed under section 321A of the Act at $16,300 for the
2023-2024 financial year).
The Bill also newly provides that donations include gifts. The definition of 'gift' is expanded
to include electoral expenditure and gifts-in-kind to a political entity, where the value of the
gift is equal to or more than $1,000 and provided without consideration or with inadequate
consideration. The Bill also expands the definition to include amounts paid to attend
fundraisers or functions.
Human rights implications
The Commonwealth Electoral Amendment (Lowering the Political Donation Threshold) Bill
2023 may engage the implied right to freedom of political communication under Article
19(2) of the International Covenant on Civil and Political Rights, by seeking to strengthen
the framework surrounding the disclosure of political donations.
The Bill does not limit the amount of donations nor prevent donations from being made
from certain organisations. Rather it seeks to improve public confidence in Australia's
political system by improving the transparency of donations to politicians and political
parties so that the public has access to information regarding those donations made above
the amount of $1,000.
Conclusion
The Bill is compatible with human rights because, to the extent that it may limit human
rights, those limitations are reasonable, necessary and proportionate.
Rebekha Sharkie MP