Labor and Liberals Could Each Get $19m More from the Public Under Electoral Law Reform: What Else Would It Do?

One of the most notable aspects of the proposed reforms is the increase in public funding for elections. The current rate of $3.35 per vote will rise to $5 per vote starting from July 2026. This increase would result in an additional $50 million in public funding relative to the 2022 election results.

If the voting patterns from 2022 were replicated, Labor and Liberal parties would each receive approximately $46 million in public funding—an increase of around $19 million each.

This change is designed to reduce reliance on private donations and level the playing field for political parties by providing them with more substantial public resources.

Caps on Campaign Spending

Another key component of the reform is the introduction of spending caps for federal elections. These caps include:

• $90 million for a federal political campaign.
• $800,000 for individual electorates.
• Separate caps for each state and territory based on population size.

These limits are intended to prevent excessive campaign spending, particularly by wealthy individuals or organizations like Clive Palmer’s United Australia Party, which spent over $120 million during the 2022 election.

The caps are also expected to reduce the fundraising burden on major parties, as they will need less money to run their campaigns compared to previous elections.

Donation Limits

The reforms also introduce strict donation limits aimed at curbing large contributions that could unduly influence political outcomes. Key points include:

• A cap of $20,000 per donor per candidate or per state division of a political party.
• Donors cannot give more than $600,000 in aggregate across all divisions and candidates.
• Affiliation fees paid by unions or other organizations to political parties will not count as donations but must still be disclosed.

These measures are designed to increase transparency and limit the influence of wealthy donors on political campaigns.

Stricter Disclosure Requirements

The bill proposes lowering the donation disclosure threshold from $16,300 to $1,000, significantly increasing transparency around political donations.

Additionally, a real-time disclosure regime will be introduced, requiring political parties to declare donations every month during non-election periods and every week during election campaigns. In the final week before an election, disclosures must be made daily.

This transparency measure aims to give voters a clearer picture of who is financially supporting candidates and parties before they cast their votes.

Truth in Political Advertising

The reforms also address concerns about misleading political advertising by introducing provisions that require truthfulness in campaign materials. This move is seen as a response to growing concerns about misinformation during election periods.

Impact on Smaller Parties and Independents

While these reforms are designed to enhance fairness and transparency, they have drawn criticism from some smaller parties and independent candidates. For example:

• Clive Palmer has voiced opposition due to the spending caps that would limit his ability to fund large-scale campaigns like he did in 2022.
• Some teal independents, who raised over $1 million each during the last election cycle, argue that these changes could disproportionately affect their ability to compete with larger parties that have established fundraising networks.

Smaller parties fear that while public funding increases may benefit major parties like Labor and Liberal, they may not be enough to offset the restrictions imposed by donation caps and spending limits.

When Will These Changes Take Effect?

The government aims to pass this legislation by the end of 2024, with most changes taking effect from July 1, 2026. Penalties for non-compliance will begin applying from 2027. The spending and donation caps will reset annually or after each federal election cycle.

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