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2023
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
Commonwealth Electoral Amendment (Real Time Disclosure of Political Donations)
Bill 2023
EXPLANATORY MEMORANDUM
and
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Circulated by authority of
Rebekha Sharkie MP
COMMONWEALTH ELECTORAL AMENDMENT (REAL TIME DISCLOSURE OF
POLITICAL DONATIONS) BILL 2023
OUTLINE
The Commonwealth Electoral Amendment (Real Time Disclosure of Political Donations)
Bill 2023 amends the Commonwealth Electoral Act 1918 ("the Act") to provide a more
transparent political donation disclosure regime.
Currently, political parties are only required to provide the Australian Electoral Commission
('the electoral commission') with an annual return which provides details of the donations
received over the disclosure threshold of $13,800 (indexed at $16,300 for 2023-2024
financial year).
The Bill amends the Act to require the agent of a registered political party, agent of a State
branch of such a party, a significant third party (campaigner) or a candidate to advise the
electoral commission of any gift or gifts received by the political party, branch, candidate,
or third party (if any part of the gift or gifts is used for certain electoral purposes by the third
party) which total more than the disclosure threshold during the financial year.
The notification must occur within five business days of receipt of the donation.
The notification must include the identity of the person or entity who made the gift, the
amount of the gift, a description of the gift, the date on which it was received, and the
name and address of the party, branch, significant third party or candidate which received
the gift.
If gifts totalling more than the disclosure threshold are made by a single person to the
same political party, branch or campaigner during a financial year, an annual return must
also be provided to the electoral commission.
The Bill does not change the disclosure threshold for political donations nor does it seek to
amend arrangements with respect to elections or by-elections.
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 (Real Time Disclosure of
Political Donations) 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. Any other item in a
Schedule to this Act has effect according to its terms.
Schedule 1 - Amendments
Commonwealth Electoral Act 1918
Item 1 - Section 302V (paragraph beginning "Gifts totalling")
4. Item 1 inserts an amended simplified outline clarifying that the electoral commission
must be notified of a gift or gifts totalling more than the disclosure threshold made to
a registered political party or State branch of such a party, or a candidate in an
election or by-election, in a financial year as soon as practicable and no later than
five business days after receipt.
5. The electoral commission must also be notified of such gifts made to significant
third parties but only if a part of the gift or gifts is used for certain electoral
purposes.
6. If gifts totalling more than the disclosure threshold are made by a single person to
the same registered political party, State branch or significant third party during a
financial year, an annual return must be provided to the electoral commission.
Item 2 - Section 302V (paragraph beginning "Returns provided")
7. Item 2 amends section 302V to include a reference to both an annual return and a
notice.
Item 3 - Section 305B (at the end of the heading)
8. Item 3 amends the heading to section 305B to clarify that this provision relates to
annual returns.
Item 4 - After section 305B
9. Item 4 inserts a new section which provides that the agent of a registered political
party or State branch of such a party must provide a notice to the electoral
commission as soon as practicable and no later than five working days after the
receipt of a gift or gifts totalling more than the disclosure threshold in a financial
year.
10. Likewise the financial controller of a significant third party must give notice to the
electoral commission as soon as possible and within five business days after
receipt of a gift or gifts totalling more than the disclosure threshold in a financial
year if the third party uses any part of the gift or gifts to incur electoral expenditure
or to create or communicate electoral matter in the financial year.
11. Further a candidate in an election (or by-election) must provide a notice to the
electoral commission as soon as practicable and no later than five working days
after the receipt of a gift or gifts totalling more than the disclosure threshold in a
financial year.
12. The notice must be in the approved form and must set out the identity of the person
or entity that made the gift, a description of the gift, the amount of the gift, the date
on which the gift was received and the name and address of the registered political
party, branch, significant third party or candidate.
13. A failure to provide notification to the electoral commission in the above
circumstances results in a penalty of 60 penalty units or an amount that is three
times the value of the donation. This penalty is consistent with other penalties set
out in Division 4 of the Act.
Item 5 - Subsection 320(1) (after table item 3)
14. Item 5 amends subsection 320(1) to provide for notices provided to the electoral
commission to be published on the Transparency Register as soon as reasonably
practicable after giving the notice.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Commonwealth Electoral Amendment (Real Time Disclosure of Political Donations)
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 (Real Time Disclosure of Political Donations)
Bill 2023 amends the Commonwealth Electoral Act 1918 ("the Act") to provide a more
transparent political donation disclosure regime.
Currently, political parties are only required to provide the Australian Electoral Commission
('the electoral commission') with an annual return which provides details of the donations
received over the disclosure threshold of $13,800 (indexed at $16,300 for 2023-2024
financial year).
The Bill amends the Act to require the agent of a registered political party, agent of a State
branch of such a party, a significant third party (campaigner), or candidate in an election or
by-election to advise the electoral commission of any gift or gifts received by the political
party, branch, candidate or third party (if any part of the gift or gifts is used for certain
electoral purposes by the third party) which total more than the disclosure threshold during
the financial year.
The notification must occur within five business days of receipt of the donation.
The notification must include the identity of the person or entity who made the gift, the
amount of the gift, a description of the gift, the date on which it was received, and the
name and address of the party, branch, significant third party or candidate which received
the gift.
If gifts totalling more than the disclosure threshold are made by a single person to the
same political party, branch or campaigner during a financial year, an annual return must
also be provided to the electoral commission.
The Bill does not change the disclosure threshold for political donations nor does it seek to
amend arrangements with respect to elections or by-elections.
Human rights implications
The Commonwealth Electoral Amendment (Real Time Disclosure of Political Donations)
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 by
certain organisations. Rather it seeks to improve public confidence in Australia's political
system by improving the transparency of donations to politicians, political parties, political
campaigners (significant third parties) and candidates so that the public has access to
information regarding those donations made above the threshold of $1,000 aggregated
over a financial year.
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