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2016-2017
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
Electoral Amendment (Banning Foreign Political Donations) Bill 2017
EXPLANATORY MEMORANDUM
and
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Circulated by authority of
Hon Bob Katter MP
Electoral Amendment (Banning Foreign Political Donations) Bill 2017
OUTLINE
This Bill makes additions to the strong foundation set in the Andrew Wilkie MP's Private Members
Bill, Commonwealth Electoral Amendment (Foreign Political Donations) Bill 2016.
Mr Wilkie's Commonwealth Electoral Amendment (Foreign Political Donations) Bill 2016
seeks to ban donations to Australian political parties and candidates from foreign sources. The Bill
proposes to amend the Commonwealth Electoral Act 1918 to make it unlawful for a political party
or candidate to receive a donation from a "foreign person", as defined in the Foreign Acquisitions
and Takeovers Act 1975.
Mr Katter's Private Members Bill, Electoral Amendment (Banning Foreign Political Donations) Bill
2017 is consistent with the policy intent of Mr Wilkie's Bill and adds an additional requirement for
the donor to provide a Statutory Declaration that they are not a foreign person. Even if a gift of
over $1,000 is accompanied by a statutory declaration, an offence will still be committed if the gift
giver is in fact a foreign person.
The statutory declaration is required to be given at the time of giving the gift and is a stronger
requirement than the name and address requirements for gifts over $10,000 currently in s306.
This Bill is in response to continued widespread public concern about large foreign donations to
Australian political parties and candidates, and is necessary to bring Australia into line with
international best practice, as the current Commonwealth Electoral Act does not distinguish
between Australian and foreign donors, or provide any requirement for the donor to state if they
are an Australian citizen.
FINANCIAL IMPACT
The bill will have no financial impact.
NOTES ON CLAUSES
Clause 1: Short Title
This clause is a formal provision and specifies the short title of the Bill as the Electoral Amendment
(Banning Foreign Political Donations) Bill 2017.
Clause 2: Commencement
1. This clause provides for the commencement of Sections 1 to 3 of the Act the day the Act
receives Royal Assent, and the commencement of Schedule 1 of the Act on 1 July 2017.
Clause 3: Schedules
2. This clause establishes that, as the intent of the Bill is to be realised through amendments
to another Act, the Schedules of this Bill will amend that Act accordingly.
Schedule 1
Commonwealth Electoral Act 1918
Item 1: Subsection 4(1)
1. Item 1 inserts a definition of "foreign person" into the definitions listed in the Act. It is
defined as per the definition of "foreign person" used in the Foreign Acquisitions and
Takeovers Act 1975. Item 1 also provides for the definition of "foreign person" to be
broadened to include any other person or entity as prescribed by the regulations.
Item 2: After section 306
2. Item 2 inserts a section 306AA into the Act. Clauses 1 and 2 make it unlawful for a political
party, a State branch of a political party, a candidate, a member of a group, or a person
acting on behalf of a candidate or a group to receive a gift made by a foreign person or if
the gift is not accompanied by a statutory declaration by the person who makes the gift
stating that the person is not a foreign person
3. Subclauses (1)(d) and (2)(d) specify that the value of the gift must exceed $1,000 to be
unlawful under this section.
4. Clauses 3 and 4 specify that a person who is considered to be a candidate or having
constituted a group shall remain considered as such for 30 days after the polling day of an
election.
5. Clause 5 specifies that a gift received unlawfully under this section is a debt owing to the
Commonwealth and provides the Commonwealth with powers to recover this debt in a
relevant court.
6. Clause 6 specifies that a gift received under this section is not unlawful if it is returned
within 30 days of its receipt.
7. Clause 7 specifies that nothing in this section applies that would limit the constitutional
doctrine of implied freedom of political communication.
Item 3: Subsection 315A(1)
8. Item 3 amends subsection 315A(1) of the Act to allow the Electoral Commissioner to
initiate action in a court to recover a debt owed under subclause 306AA(5).
Item 4: After paragraph 321A(1)(f)
9. Item 4 amends section 321A(1) of the Act to provide for the dollar figure referenced in
subclauses 306AA(1)(d) and 306AA(2)(d) to be indexed.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Electoral Amendment (Banning Foreign Political Donations) Bill 2017
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
This Bill seeks to ban donations to Australian political parties and candidates from foreign sources.
The Bill proposes to amend the Commonwealth Electoral Act 1918 to make it unlawful for a
political party or candidate to receive a donation from a "foreign person", as defined in the
Foreign Acquisitions and Takeovers Act 1975.
The donor must provide a Statutory Declaration that they are not a foreign person. Even if a gift
of over $1,000 is accompanied by a statutory declaration, an offence will still be committed if the
gift giver is in fact a foreign person (and therefore lied on their statutory declaration).
The Bill provides exemptions for donations under $1,000 and includes provisions for a political
party or candidate who receives a prohibited donation to repay it within 30 days.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms.
Conclusion
This bill is compatible with human rights because it does not raise any human rights issues.
Hon Bob Katter MP