Support secured for world leading electoral donation ban

The Malinauskas Labor Government has secured broad political support for its world leading move to ban political donations and will this week introduce legislation into the State Parliament to implement it.

Delivering on its election commitment, the Government will tomorrow give notice to introduce the Electoral (Accountability and Integrity) Amendment Bill 2024.

The Government has secured support for the reform from the Liberal Party, minor parties and other Members of Parliament.

The legislation is designed to get money out of politics and strengthen public confidence in democracy.

The changes will have practical consequences for existing and aspiring political parties, aspirants for election, and third-party campaigners.

The Bill seeks to prohibit the giving and receiving of electoral donations and gifts to registered political parties, members of Parliament and candidates. It will also impose mandatory expenditure caps on parties, candidates and third parties.

To replace this funding, the bill proposes a restructure and mandatory application of the existing public funding model, which is based on the number of votes received at previous elections. It will also include advance payments to new entrants to the political process, such as independent candidates.

To further ensure new entrants are not disadvantaged, they will be entitled to receive donations of up to $5,000 and will also be subject to a spending cap.

All candidates will continue to be able to make use of volunteers.

Significantly, the bill includes the introduction of expenditure caps, donation caps and loan caps for third parties, including unions, businesses, think tanks and other entities.

Strict penalties will apply for those seeking to circumvent the donation ban.

The Bill has taken into account advice and feedback from constitutional experts, the Solicitor General, the Electoral Commission, a panel of experts, democracy groups, political parties, independents and third parties.

This significant reform is complex and may well be subject to legal challenge, including via the High Court.

The Government will seek to have the Bill passed by the end of the year, with the ban to take effect on 1 July 2025.

A statutory review of the bill’s operation will be completed within 18 months of the 2026 general election.

Quotes

Attributable to Peter Malinauskas

Getting money out of politics is the right thing to do.

This legislation continues South Australia’s proud tradition as a world leader in democratic reform.

Politicians should be busy talking to people about their priorities, not soliciting donations.

We know this has broad support in the community.

I’m very pleased that it also has broad support in the Parliament, including from Liberals, Greens and Independents.

We have listened carefully to the advice of experts and crafted this bill in close consultation with democracy groups, other major and minor parties, and independents, to ensure we have a system which is fair, workable and able to withstand legal challenge.

Attributable to Dan Cregan

The objective of this complex electoral reform is to strengthen public confidence in democracy and reverse the trust deficit emerging across jurisdictions.

The legislation has been designed to strike the right balance and be fair for new entrants and existing participants. It ensures independent and minor parties are not disadvantaged.

It recognises the constitutional guarantee of freedom of political communication and is calibrated to avoid placing an unconstitutional burden on that freedom.

We have welcomed advice from the expert panel, democracy groups and submissions received through the public consultation process and have carefully considered their feedback.

Attributable to Rob Simms MLC

The Greens welcome this historic breakthrough on donations reform. After many months of negotiation with the government, we are pleased to have secured some important improvements to the bill.

In particular, a cap will now be placed on campaign spending by third party entities – a vital safeguard against US-style Super PACs.

We also secured some important exemptions for registered charities which will ensure they can continue their work.

In addition, we welcome the advancement of a fairer funding model for small and emerging political parties.

As a result, the Greens will now support this bill through the parliament.

Attributable to Sarah Game MLC

One Nation welcomes the government’s electoral funding reforms.

These reforms introduce a new framework for the public funding of political parties prior to a State Election.

The reforms also end political donations.

The new rules will encourage new political parties to stand candidates and lessen the perception of buying access with donations.