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2004-2005-2006
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
ELECTORAL AND REFERENDUM AMENDMENT (ELECTORAL
INTEGRITY AND OTHER MEASURES) BILL 2005
SUPPLEMENTARY EXPLANATORY MEMORANDUM
(Circulated by authority of the Special Minister of State,
the Honourable Gary Nairn MP)
ELECTORAL AND REFERENDUM AMENDMENT (ELECTORAL
INTEGRITY AND OTHER MEASURES) BILL 2005
OUTLINE
The Electoral and Referendum Amendment (Electoral Integrity and Other Measures)
Bill 2005 (the Bill) contains reform measures amending the Commonwealth Electoral
Act 1918 (the Electoral Act), the Referendum (Machinery Provisions) Act 1984 and
the Income Tax Assessment Act 1997 arising from some of the Government supported
recommendations of the Joint Standing Committee on Electoral Matters' (JSCEM)
report on the 2004 federal election, which was tabled in the Parliament on 10 October
2005, and additional reform measures considered a priority by the Government.
The Bill contains provisions relating to third party disclosure of political expenditure;
the automatic deregistration of political parties, with certain exceptions, and party
re-registration under the current requirements of the Electoral Act; and tax
deductibility for political parties and independent candidates and members.
The amendments to the Bill will:
· clarify the circumstances for which third parties will be required to lodge
annual returns of political expenditure;
· ensure that expenditure incurred for the purpose of expressing public views on
participants in the political process will be disclosed under proposed
section 314AEB of the Electoral Act;
· require associated entities to lodge annual returns of political expenditure;
· exempt government departments and agencies, and Members and Senators
from having to lodge annual returns of political expenditure;
· allow for limited changes to be made to the Register of Political Parties when
the Register is frozen and during the period 12 months after the
commencement of the deregistration process; and
· amend the Income Tax Assessment Act 1997 to allow for tax deductibility for
either gifts and/or contributions to both political parties and independent
candidates and members.
FINANCIAL IMPACT STATEMENT
The amendments are not expected to have any financial impact on Commonwealth
expenditure or revenue.
NOTES ON AMENDMENTS
Schedule 1 - Amendments relating to Annual Returns by Third Parties
Amendment 1 - Schedule 1, item 84, page 22 (lines 29 and 30)
Amendment 2 - Schedule 1, item 84, page 23 (lines 8 and 9)
1. These amendments remove subparagraphs (i) and (iv) of
paragraph 314AEB(1)(a) which currently refers to the defined term electoral matter
and replaces them with two new subparagraphs which more precisely capture the
types of expenditure required to be disclosed under section 314AEB.
2. Amendment 1 will capture expenditure incurred for the purpose of expressing
public views on specified participants in the political process. Expressing public
views on political parties (including non-registered political parties), candidates in
federal elections and members of the House of Representatives or Senate will attract
the operation of section 314AEB once the level of expenditure incurred for that
purpose exceeds $10,000 in a financial year.
3. Amendment 2 will capture expenditure incurred by a third party for the
broadcast of political matter if that matter required authorisation under subclause 4(2)
of Schedule 2 to the Broadcasting Services Act 1992. Importantly, the material
captured under this provision no longer includes electoral matter published on the
Internet, as that expenditure is captured by subparagraph 314AEB(1)(a)(iii).
4. These amendments are intended to remove an unnecessary administrative
burden on organisations for which involvement in the political process is not their
primary purpose.
Amendment 3 - Schedule 1, item 84, page 23 (line 18)
5. This amendment substitutes the current subparagraph 314AEB(1)(c)(iii) with
new subparagraphs 314AEB(1)(c)(iii) and 314AEB(1)(c)(iiia). The effect of this
amendment is, firstly, to remove the exemption provided to `associated entities' in
subparagraph 314AEB(1)(c)(iii). The purpose of this amendment is to require all
associated entities to disclose political expenditure and gifts received over $10,000
that enabled the entities to incur political expenditure. Associated entities will
continue to be required to provide information under the existing requirements of
section 314AEA for annual returns by associated entities.
6. As currently drafted, section 314AEB requires government departments and
agencies to lodge a return detailing expenditure on electoral advertising, opinion
polling or other research undertaken in relation to voting intentions of electors or any
other item listed in section 314AEB (1)(a)(i) to (iv). Importantly, section
314AEB(1)(a)(i) as it currently stands would require all government departments and
agencies and Members' and Senators' to lodge annual returns of their political
expenditure, including information on their personal websites, that contains electoral
matter.
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7. This amendment is designed to exempt the requirement for the Commonwealth
and members of the House of Representatives or Senate from providing an annual
disclosure return under section 314AEB. As government departments and agencies
report under s 311A of the Electoral Act, it is not considered necessary that they
provide an additional annual return.
Amendment 4 - Schedule 1, item 84, page 24 (lines 5 and 6)
Amendment 5 - Schedule 1, item 84, page 24 (lines 7 to 12)
8. The amendments omit paragraph 314AEC(1)(d) and make a consequential
change to paragraph 314AEC(1)(c). As the requirement to lodge a return under
section 314AEC is dependent upon whether a person is required to lodge a return
under section 314AEB, the exemptions currently specified at paragraph
314AEC(1)(d) are redundant.
Schedule 3 - Amendments relating to the Register of Political Parties
Amendment 6 - Schedule 3, item 5, page 47 (lines 7 and 8)
Amendment 7 - Schedule 3, item 6, page 47 (line 15)
9. Amendment 6 makes a technical amendment to provide for the address of the
registered officer of a registered political party to be changed on the Register of
Political Parties (the Register) in addition to the registered officer's name. This will
ensure that when the registered officer changes, all notification that is required to be
sent to the registered officer under the Electoral Act is sent to the officer's current
address rather than being sent to the new officer at the old address.
10. This amendment compliments the provision at item 5 of Schedule 3 of the Bill
to change the name of the registered officer of the political party within the first six
months of the deregistration scheme when the register will be frozen.
11. Amendment 7 will operate only if an election, including a by-election, is held
within twelve months from the commencement of the item. If that is the case, the
amendment provides that the name and address of the registered officer of a registered
political party may be changed. This amendment is necessary to ensure that
registered officers of registered political parties can sign a nomination for candidature
in a federal election.
Schedule 4 - Amendments Relating to Tax Deductibility of Donations to Political
Parties and Independent Candidates and Members
Amendment 8 - Schedule 4, item 1, page 48 (lines 12 and 13)
Amendment 9 - Schedule 4, item 1, page 49 (line 1)
Amendment 10 - Schedule 4, item 1, page 49 (line 4)
Amendment 11 - Schedule 4, item 1, page 49 (line 7)
Amendment 12 - Schedule 4, item 1, page 49 (line 19)
Amendment 13 - Schedule 4, item 1, page 50 (line 8)
Amendment 14 - Schedule 4, item 1, page 50 (line 10)
Amendment 15 - Schedule 4, item 2, page 52 (lines 5 and 6)
Amendment 16 - Schedule 4, item 3, page 52 (lines 11 and 12)
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Amendment 17 - Schedule 4, item 5, page 52 (lines 17 and 18)
12. Amendments 8 to 17 will allow tax deductibility for either gifts and/or
contributions to both political parties and independent candidates and members.
Schedule 4 of the Bill as it currently stands provides for tax deductibility for
contributions to political parties but only for gifts to independent candidates and
members. These amendments will ensure parity of tax treatment between
independent candidates and members and political parties in regards to donations and
contributions.
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