Push for Transparency Stalls: Electoral Donation Reform Bill Shelved Until 2025

Minister for Finance Katy Gallagher during question time in the Senate chamber at Parliament House in Canberra, Australia, on June 14, 2023. AAP Image/Mick Tsikas

Amid a push to pass over 40 bills in the Senate’s final week, the Albanese government has shelved its electoral reform bill for now.

Finance Minister Katy Gallagher confirmed in the Senate on Nov. 28 that the reforms, which proposed caps on electoral donations, will not proceed this year.

Gallagher said the government plans to spend the summer negotiating with the crossbench. When asked if the bill would return to parliament in February, she responded, “That’s the intention.”

She acknowledged the government’s inability to secure Coalition support for its electoral reform bill, despite extensive meetings and efforts led by Senator Don Farrell.

Gallagher cited last-minute amendments as a key obstacle and pledged that Senator Farrell would engage crossbenchers over the summer to secure agreement, aiming for the bill’s passage early next year.

What Does the Bill Propose?

Introduced on Nov. 15, the bill seeks to increase transparency in political donations. Key changes include lowering the disclosure threshold from $16,900 to $1,000 and requiring cumulative annual reporting to close loopholes such as “donation splitting.”

By 2028, reporting deadlines will tighten, with monthly updates and near-instant disclosures within seven days of an election being called, and 24 hours in the final polling week.

The reforms also cap individual donations at $20,000 per candidate, with an overall limit of $600,000 for donors supporting multiple candidates.

Political parties would face a federal spending cap of $90 million, while independents would have tailored limits, such as $800,000 for House of Representatives candidates.

Exemptions would cover expenses such as office operations, travel, and remote area logistics.

Public election funding would rise to $5 per first-preference vote for candidates receiving at least four percent of the primary vote, reducing reliance on private donors.

Critics Call for More Scrutiny

The bill has faced calls for further review, with Teal independent MPs and the Greens pushing for it to be referred to a Standing Committee for debate, but that motion did not garner support.

West Australian teal MP Kate Chaney argued against rushing the legislation.

“The government said they’ve consulted, but we have not seen any legislation until a few days ago. With such a fundamental change, we need to consider all the consequences—intended and unintended,” she told Parliament.

Chaney also accused major parties of using the Bill as a tool to curb the growing trend of voters choosing independents over traditional parties.

“At the last election, we saw the lowest primary vote for majors, with one in three voters voting for a minor or an independent. The will of the people is changing, and this is a threat to the major parties,” Chaney said.

Zali Steggall echoed these concerns, suggesting it was a joint effort by Labor and the Coalition to undermine the Teals.

“No one wants Australia to drift towards a U.S. system where campaigns become multi-billion-dollar exercises, forcing candidates into an unholy dance with big donors,” the Northern Beaches MP warned.

“But we also don’t want to end up like the U.S., with only two poor choices that fail to deliver good policy for the future.”

Greens Leader Adam Bandt called for greater scrutiny, saying that the Bill could wait.

“If the Bill is that good, let people run the ruler over it,” he said.

Bandt noted that the reforms would not impact the next federal election but the one after.

“There’s absolutely no justification for bypassing the standard legislative review process,” he added.