Act of Parliament assented to - Act No. 147 of 2018

Overview

The Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018 was enacted to address the need for improved transparency and accountability in electoral funding and disclosure practices within the Australian electoral system. This Act was passed by the Australian Parliament and received Royal Assent on 30 November 2018, marking a significant step towards strengthening the integrity of electoral processes. The policy objective behind this legislation is to enhance public trust in the electoral system by ensuring that funding sources and disclosure practices are more transparent and regulated, thus mitigating potential undue influence on election outcomes. The Act amends the Commonwealth Electoral Act 1918, introducing measures aimed at tightening controls over electoral funding and disclosure requirements.

Scope and Application

The Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018 applies to entities, individuals, and third parties involved in the funding and disclosure processes within the framework of Australian federal elections. This Act specifically targets political parties, candidates, and entities that engage in political advertising or campaign financing. It encompasses the regulation of financial contributions, expenditures, and the disclosure requirements associated with these activities to ensure transparency and accountability in electoral funding. The geographic reach of this Act is national, affecting electoral processes across the Commonwealth of Australia. The Act does not apply to state or territory elections, maintaining its focus on federal electoral matters. Furthermore, the Act introduces specific thresholds and conditions for disclosure, ensuring that entities and individuals with significant involvement in electoral funding are subject to more rigorous reporting requirements. While the Act itself sets the primary framework, its application and enforcement may be extended or clarified through subordinate instruments, which could include regulations or guidelines issued by relevant authorities to operationalise the legislative provisions.

Key Provisions

The main operative sections of the Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018 (hereafter referred to as the "Act") primarily amend the Commonwealth Electoral Act 1918. Section 3 of the Act introduces new provisions concerning the disclosure of political donations and expenditure, while section 4 provides for the establishment of a new independent electoral commission. Section 5 outlines the powers and functions of this commission, and section 6 specifies the penalties for non-compliance with the new disclosure requirements. Under the Act, political parties, candidates, and other entities are required to adhere to stringent disclosure obligations. Section 3 mandates that all political donations over a specified threshold must be reported to the Australian Electoral Commission (AEC), now referred to as the Australian Electoral Commission (AEC). This includes donations from both individuals and entities, and the threshold amount is specified in section 60HA of the Commonwealth Electoral Act 1918. Section 4 imposes a duty on these entities to maintain accurate records of all donations and expenditures, which must be made available for audit by the AEC. Furthermore, section 6 of the Act requires the new independent electoral commission to oversee the enforcement of these disclosure requirements and to investigate any breaches. The Act imposes significant consequences for non-compliance. Section 6 of the Act establishes that failure to disclose donations or expenditures as required under section 3 is an offence. The maximum penalty for an individual is a fine of up to 10,000 penalty units or imprisonment for up to five years, or both, as outlined in section 13.2 of the Crimes Act 1914. For bodies corporate, the maximum penalty is up to 50,000 penalty units, as specified in section 13.2A of the Crimes Act 1914. Additionally, section 13 of the Act provides for civil penalties, including the possibility of fines for non-compliance with the new disclosure requirements. These provisions underscore the seriousness with which the Act treats compliance with electoral funding and disclosure regulations.