Commonwealth of Australia Explanatory Memoranda

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ELECTORAL LEGISLATION AMENDMENT (POLITICAL CAMPAIGNERS) BILL 2021

                             2019-2020-2021




    THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                              THE SENATE




ELECTORAL LEGISLATION AMENDMENT (POLITICAL CAMPAIGNERS)
                        BILL 2021




        SUPPLEMENTARY EXPLANATORY MEMORANDUM




         Amendments to be moved on behalf of the Government




         (Circulated by authority of the Special Minister of State,
                        the Hon Ben Morton MP)


Glossary The following abbreviations and acronyms are used throughout this Supplementary Explanatory Memorandum: Abbreviation Definition AEC Australian Electoral Commission Bill Electoral Legislation Amendment (Political Campaigners) Bill 2021 Electoral Act Commonwealth Electoral Act 1918 ICCPR International Covenant on Civil and Political Rights Item Refers to an item in the Bill (as amended by the Parliamentary Amendments) Parliamentary Amendments Amendments in sheet ZD154 1


ELECTORAL LEGISLATION AMENDMENT (POLITICAL CAMPAIGNERS) BILL 2021 OUTLINE The Electoral Legislation Amendment (Political Campaigners) Bill 2021 (the Bill) makes amendments to the Commonwealth Electoral Act 1918 (the Electoral Act) to reduce the thresholds for electoral expenditure that can be incurred by an individual or organisation before they are required to register as a political campaigner. The Bill also expands criteria for registration and disclosure requirements for political actors who are significant third parties (formerly political campaigners), and expands the criteria and list of entities that can be 'associated' with an associated entity to include political campaigners and other disclosure entities. These Parliamentary Amendments will: • replace all references to 'political campaigner' with 'significant third party'; and • amend the expenditure threshold relating to when a person or entity must register as a 'significant third party' for a financial year to $250,000. FINANCIAL IMPACT STATEMENT Nil STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS A Statement of Compatibility with Human Rights has been completed in relation to the Bill. The Bill has been assessed as compatible with Australia's human rights obligations. The amendments proposed do not alter this statement. 2


Statement of Compatibility with Human Rights Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 Electoral Legislation Amendment (Political Campaigners) Bill 2021 The Parliamentary Amendments to the Bill are 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. Human rights implications The impact of the Parliamentary Amendments to the Bill on the following right from the ICCPR has been considered: • the right to freedom of expression under Article 19. Article 19 - Freedom of Expression 1. The Parliamentary Amendments to the Bill engage the right to freedom of expression under Article 19 of the ICCPR by amending the Electoral Act to require significant third parties to register from a lower electoral expenditure threshold. This means that more persons or entities who are involved in the political process will be required to report and disclose financial information relating to expenditure and income during a financial year. 2. Given that Article 19 of the ICCPR carries special duties and responsibilities, it may be subject to certain restrictions required by law. The proposed limitation on the right to freedom of expression is proportionate to the legitimate end sought, as transparency, accountability and public confidence in the political system enables the Australian electorate to make informed decisions in the exercise of their franchise. 3. The limitation of the right is therefore consistent with Article 19 of the ICCPR. Conclusion 4. The Parliamentary Amendments to the Bill are compatible with human rights because, to the extent it may limit human rights, those limitations are reasonable, necessary, and proportionate. 3


AMENDMENTS TO THE ELECTORAL LEGISLATION AMENDMENT (POLITICAL CAMPAIGNERS) BILL 2021 Amendments to Schedule 1 1. Amendment 1 of the Parliamentary Amendments amends Item 1 of Schedule 1 of the Bill to omit $100,000 and substitute $250,000. 2. Item 1 of the Bill as introduced to the Senate proposed to reduce the electoral expenditure threshold relating to when a person or entity must register as a political campaigner for a financial year under subparagraph 287F(1)(a) of the Electoral Act from $500,000 to $100,000. The Parliamentary Amendment increases this threshold to $250,000, noting this is still a decrease from the $500,000 threshold in current subparagraph 287F(1)(a). 3. Amendment 2 of the Parliamentary Amendments amends Item 4 of Schedule 1 of the Bill to omit "political campaigner" from the Note in the application provision, and substitute "significant third party". Amendments to Schedule 2 4. Amendments 3 - 24 of the Parliamentary Amendments amend the following Items in Schedule 2 of the Bill: • Items 2 and 4 to omit "political campaigner" and substitute "significant third party"; • Items 13 and 15 to omit "political campaigners, associated" and substitute "significant third parties, associated"; • Item 14 to omit ", political campaigners or" and substitute ", significant third parties or"; • Item 16 to omit ", political campaigners" and substitute ", significant third parties"; • Item 17 to omit the Item and substitute new subparagraph 302D(1)(a)(ii) to omit "political campaigner" and substitute "significant third party or an associated entity"; • Item 18 to omit ", political campaigner" and substitute ", significant third party"; • Item 19 to omit the Item and substitute new subparagraph 302F(1)(a)(ii) to omit "political campaigner" and substitute "significant third party or an associated entity"; • Item 20 to omit the Item and substitute new paragraph 302F(1)(b) to omit "political campaigner" and substitute "significant third party, associated entity"; • Item 22 to omit the Item and substitute new paragraphs 302H(1)(b) and (c) to omit "political campaigners" (wherever occurring) and substitute "significant third party, associated entity"; • Item 24 to omit "political campaigner" and substitute "significant third party" (wherever occurring); and 4


• Item 35 to omit "political campaigner" and substitute "significant third party" (wherever occurring). 5. Lines 24 and 25 of Item 35 to omit "political campaigner as if "30 days after the person or entity is registered as a political campaigner" and substitute "person or entity as if "30 days after the person or entity is registered as a significant third party". These amendments are consequential to the amendments in Schedule 3. Schedule 3 - Name change for political campaigners Commonwealth Electoral Act 1918 6. Amendment 25 of the Parliamentary Amendments adds at the end of the Bill, a new schedule (Schedule 3) of amendments to the Electoral Act. 7. Schedule 3 amends references to the concept of 'political campaigner' throughout the Electoral Act to 'significant third party'. This more closely aligns the use of terminology for consistency across the Electoral Act. 8. Items 1, 11, 16, 18, 26, 28, 30, 32, 33, 37, 41, 42, 47, 49, 52, 54, 55, 59, 61, 65, 66, 67, 68, 69, 71, 74, 75, and 76 amend the following sections, subsections, paragraphs and subparagraphs respectively: 4AA(4)(b); 287(1)(b); 287C(b)(i); 287C(b)(ii); 287C(c); 287K(1)(a); 287L(6)(b); 287N(2)(a)(i); 287S(1)(b); 287S(2); 292E(1); 292E(2); 292E(3); 292F(4)(b); 302F(2)(c)(ii); 305B(1)(c); 305B(2); 305B(3A)(a)(iii); 306A(6)(a); 306B(1)(a); 314AA(2); 314AB(1); 314AB(3); 314AC(1); 314AE(1); 314AEA(5); 314AEA(6)(a); 316(2A)(aaa)(iv); 316(3A)(a); 316(3A)(b); 319A(2A)(b); and paragraph aa of the definition of 'disclosure entity' in section 321B to omit "political campaigner" and substitute "significant third party". 9. Item 2 amends section 286A to omit "It also deals with gifts and other financial matters relating to parties, candidates, groups, political campaigners" and substitute "It also deals with gifts and other financial matters relating to parties, candidates, groups, political campaigners, significant third parties". 10. Items 3 and 34 amend sections 286A and 287V to omit "Political campaigners" and substitute "Significant third parties". 11. Item 4 amends section 286A to omit "groups) and political campaigners" and substitute "groups) and significant third parties". 12. Item 5 amends section 286A to omit "Broadly, gifts to political entities, political campaigners" and substitute "Broadly, gifts to political entities, significant third parties". 13. Items 6, 15, 19, 31, 35, 57, 70 and 77 amend section 286A(b), note 3 of subsection 287AB(1), section 287C (note), paragraph 287N(2)(b), section 287V, section 314AAA, subparagraph 316(2A)(aaa)(i) and the note to definition of 'disclosure entity' in section 321B to omit "political campaigners" and substitute "significant third parties". 14. Item 7 amends section 286A to omit "Each financial year, registered political parties, political campaigners" and substitute "Each financial year, registered political parties, significant third parties". 5


15. Item 8 repeals the definition of "political campaigner" in subsection 287(1) of the Electoral Act (including the notes) and substitutes new subsection 287(1) which refers the reader to new subsection 287(11). 16. Items 9, 13, 21, 24, 25, 27, 29, 53, 56, 72 and 73 amends subsection 287(1), subsection 287(8) (heading), section 287D, subsection 287F(1), section 287J, subsection 287L(4), section 287M, paragraph 306A(1)(c), subsection 306B(2), paragraph 316(2A)(aa) and subsection 316(2B) to omit "political campaigner" (wherever occurring) and substitute "significant third party". 17. Item 10 amends subsection 287(1) to insert the definition of "significant third party". Under this definition, a "significant third party" means a person or entity that is registered as a significant third party under section 287L. 18. Items 12, 36, 60 amend the headings to 287(8), 292E, 314AB to omit "political campaigners" and substitute "significant third parties". 19. Item 14 inserts new subsection 287(11) to provide that a reference to a person or entity registered under the Electoral Act as a 'political campaigner' in any other law of the Commonwealth is taken to be a reference to a person or entity registered under the Electoral Act as a 'significant third party'. This amendment ensures consistency across Commonwealth legislation, such as the Foreign Influence Transparency Scheme Act 2018, with the terminology amended by the Parliamentary Amendments. 20. Item 17 amends paragraph 287C(b) to omit "or campaigner" and substitute "or significant third party". 21. Items 20 and 46 amend the headings in Division 1A of Part XX, and section 305B to omit "political campaigners" and substitute "significant third parties". 22. Items 22 and 23 amend the headings in Subdivision B of Division 1A of Part XX and section 287F to omit "political campaigner" and substitute "significant third party". 23. Item 38 amends subsection 292E(3) to omit "(the campaigner or entity)". 24. Item 39 amends subsection 292E(3) to omit "campaigner or entity" and substitute "significant third party or associated entity". 25. Item 40 amends subparagraph 292F(1)(b)(iii) to omit "political campaigner or associated entity--by the campaigner or entity" and substitute "significant third party or associated entity--by the significant third party or associated entity". 26. Item 43 amends section 302V to omit "Gifts totalling more than the disclosure threshold that are made by a single person to the same registered political party, State branch or political campaigner", and substitute "Gifts totalling more than the disclosure threshold that are made by a single person to the same registered political party, State branch or significant third party". 27. Item 44 amends section 302V to omit "There are limitations on loans made to political parties, State branches, political campaigners" and substitute "There are limitations on loans made to political parties, State branches, significant third parties". 6


28. Item 45 amends section 302V to omit "Gifts of more than the disclosure threshold to a political party, State branch, political campaigner" and substitute "Gifts of more than the disclosure threshold to a political party, State branch, significant third party". 29. Items 48, 50 and 51 amend subsections 305B(1), 305B(2) and paragraph 305B(3)(c) to omit "branch or campaigner" and substitute "branch or significant third party". 30. Item 58 amends section 314AAA to omit "parties, campaigners" and substitute "parties, significant third parties". 31. Item 62 amends subparagraphs 314AB(2)(a)(i), (ii) and (iii) to omit "party or campaigner" and substitute "registered political party or significant third party". 32. Item 63 amends subparagraph 314AB(2)(a)(iv) to omit "political campaigners--the total amount of electoral expenditure incurred by or with the authority of the campaigner" and substitute "significant third parties--the total amount of electoral expenditure incurred by or with the authority of the significant third party". 33. Item 64 amends paragraph 314AB(2)(b) to omit "party, branch or campaigner", substitute "registered political party, branch or significant third party". 34. Political advocacy is a valuable part of the democratic electoral process. These amendments recognise that, with the exception of their size and significance, there is similarity in operations for political actors that currently register with the AEC as a political campaigner, and those that report as a third party. While the term political campaigner accurately summates the activities undertaken by entities that currently meet the criteria to be registered, the amendments reflect feedback that the term 'significant third party' is preferred by some organisations to the term 'political campaigner'. These amendments will continue to capture the involvement of these significant third parties who seek to influence election outcomes under election funding and financial disclosure Electoral Act provisions. 35. Item 78 sets out transitional provisions for the changes in the Parliamentary Amendments. 36. Subitem 78(1) provides that a person or entity registered as a political campaigner for a financial year immediately before this item commences is taken to be registered as a significant third party from the time this item commences. 37. Subitem 78(2) provides that the change of name from political campaigner to significant third party does not affect any rights, liabilities or obligations of a person or entity registered as a political campaigner before this item commences. 38. Subitem 78(3) provides that if, as a result of the amendments made by this Act, amendments in another Act become misdescribed, the amendments in the other Act may be given effect by an editorial change under section 15V of the Legislation Act 2003 (see paragraph 15X(2)(o) of that Act). 7


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