South Australia’s Government will introduce a law to ban political donations in state elections.
Currently, any person or organisation can give money to a political party or election campaign.
Premier Peter Malinauskas said draft legislation could see SA become a “world leader” in taking “money out of politics.”
However, the move could trigger a legal challenge in Australia’s highest court.
Political donations
In the lead-up to federal and state elections, candidates and parties can spend significant amounts on advertising, social media, events, and travel.
In South Australia, anyone can donate to a political party for a state election. All donations and gifts above $5,000 are publicly disclosed.
The State Government wants to introduce a “widespread ban on electoral donations,” including “tough penalties” for breaches.
South Australia’s proposal
Before becoming Premier, Peter Malinauskas said he would ban political donations in the lead-up to the 2022 state election.
Malinauskas vowed to remove the “perception of undue political influence” — individuals and companies donating large sums of money in exchange for political decisions made in their favour.
“I don’t care if you’re a cigarette company or a shoe store. Whether you burn fossil fuels or you campaign against them. Whether you’re a business or you’re a trade union. Political donations are out, under [this] model”.
SA Premier Peter Malinauskas
Draft law
The SA Government has proposed public funding in place of private donations.
SA political parties would be entitled to one-off payments capped at $700,000, or $47,000 for each current MP (whichever is less) to fund state-level election campaigns.
Anyone found in breach of the proposed law would face up to 10 years imprisonment or a fine of up to $50,000.
Independents
The SA Government’s donation ban would include an exception for independent politicians, who don’t have the backing of an established political party.
It would allow these candidates to raise money from private donations, with a limit of $2,700 per donation. This limit would also be applied to new parties running for election.
The Government’s plan would also see independents allocated a $15,000 publicly funded payment.
High Court
The High Court has previously ruled against spending limits for election campaigns, arguing this could breach political expression rights.
These rights are “implied” (not openly stated) in the Australian Constitution.
Premier Malinauskas acknowledged the reforms could face legal challenges in Australia’s top court but said: “That doesn’t mean that we shouldn’t give this a red hot try, despite the difficulties — because what if we succeed?”
What now?
The draft law is open to public consultation for four weeks.
The Labor Government has a majority in the Lower House. However, the Government will need extra support to pass the measures through the Upper House.
If the Coalition opposes the legislation, the Government will need support from the two Greens in the SA Upper House and at least one other minority party or independent.
Greens Upper House MP Robert Simms said he welcomed the political donations reform legislation and would carefully consider its details.
“The Greens have long rallied against the corrosive influence of donations on our democracy,” Simms said.
However, Simms noted he wants to “ensure that any reform doesn’t stifle small parties and independents — after all, this diversity is vital to our democracy.“
TDA contacted SA’s Opposition but did not receive a response at the time of publishing.
