Left and this page: The indoor and rooftop gardens of the Parliament of New South Wales.
affiliate expenditure exceeds the caps. This aggregation will apply for the overall state cap on party expenditure, as well as the $50,000 electorate cap. It is unlawful under the Act for a party to incur expenditure in excess of the relevant statutory caps.
Corporate donations In relation to the government’s long held commitment to ban corporate donations, it is the New South Wales Liberal and Nationals' strong view that the only way that you can ensure that the public is going to have confidence in our electoral system is to limit political donations to the individuals who are on the electoral roll. It must be limited to those Australian citizens who are enrolled, not overseas citizens and non-residents, because of course those people do not get the vote. They do not have a stake in the system and they should not be able to influence the system – and nor should unions, third-party interest groups and corporations. The new general ban on
corporate and other donations applies to both state and local
government elections. The Act ensures that the new restrictions cannot be circumvented by corporate entities, union entities or others channelling donations through individuals. Such conduct will be unlawful.
However, I will continue to urge the government of the Commonwealth of Australia to extend these reforms in the federal electoral context so that the same fundamental principles of accountability and transparency apply at every level of government in Australia. Such consistency will enhance the effectiveness of the reforms we are putting in place in New South Wales today.
Issue-based advertising by others The government’s amendments do not prevent third-party campaigners or other third-party organizations such as community groups from accepting corporate donations that are used to run genuine issue-based campaigns. Such campaigns do not constitute “electoral expenditure” within the meaning of the Act. The government recognises the
importance of third parties in the democratic process and notes that the amendments do not prevent third-party campaigners from receiving donations from its individual members. It is also not designed to prevent peak bodies from levying their member bodies, provided those levies are not used to make a “political donation” or to incur “electoral expenditure” within the meaning of the Act. In this regard, peak bodies will still have the freedom to undertake issue- based campaigns as provided in the current legislation. The new law may present third-
party campaigners with some new issues to consider; but the government believes a ban on corporate political donations must be extended to them if it is to be effective. The ongoing risk of corruption and undue influence in political life in New South Wales will only be avoided by eliminating corporate donations, and this must include the elimination of “third party” loopholes through which such donations may be directed.
Removing undue influences It is inevitable that these laws will
trigger discussion and debate about constitutional principles. It has always been a great excuse to do nothing and a way to justify the status quo. A ban on donations other than those by individuals does not place unreasonable restrictions on the implied freedom of political communication mandated by the Commonwealth of Australia constitution. That said, New South Wales and other states have already been successful in imposing limited bans on certain types of donations. For example, in New South Wales, donations from property developers and from tobacco, liquor and gambling companies are banned. The measures in these amendments are designed to rid this state of the risk, reality and perception of corruption and undue influence. To this end, they are consistent with the principles endorsed by the High Court in the Lange case. The amendments’ symbolic and practical effect should not be underestimated. It will not be possible, however,
under the amended Act for a person to commit an offence under both the industry-specific bans and the new general prohibition on donations by non-individuals in relation to the same conduct. The argument that the reforms
somehow favor the wealthy is totally false. The caps on donations remain
at the same level set by the previous Labor government. Under the amendments, all people and organizations will maintain the right to incur electoral expenditure, such as advertising, within existing caps and subject to the rules regarding the aggregation of expenditure. This protects the quality and diversity of political communication in New South Wales. These important reforms are
long overdue. They will support a system of democracy in New South Wales that does not operate for the benefit of organizations that have no right to elect representatives to our Parliament.