EXPLANATORY STATEMENT

Issued by authority of the Special Minister of State

Electoral Legislation Amendment (Electoral Reform) Act 2025

Electoral Legislation (Electoral Reform) (Application and Transitional Provisions) Rules 2026

Authority

Schedule 11 of the Electoral Legislation Amendment (Electoral Reform) Act 2025 (the Electoral Reform Act) provides that the Minister may, by legislative instrument, make rules prescribing matters of a transitional nature (including prescribing any saving or application provisions) in relation to the amendments or repeals made by that Act.

Purpose

The Electoral Legislation (Electoral Reform) (Application and Transitional Provisions) Rules 2026 (the Rules) support the transition from the current financial disclosure and reporting system to the new system prescribed by the Electoral Reform Act.

The purpose of the Rules is to clarify the timing and application of the provisions inserted by the Electoral Reform Act. In particular, the Rules:

• include detail about when existing obligations of the current funding and disclosure regime cease and new obligations commence, and
• preserve the operation of certain reporting obligations to ensure consistency of obligations for elections that may occur during the transitional period.

The Electoral Reform Act makes significant amendments to the Commonwealth Electoral Act 1918 (Electoral Act) and the Referendum (Machinery Provisions) Act 1984 (Referendum Act) financial disclosure laws, including requiring expedited disclosure of gifts, reducing the “disclosure threshold” to $5,000 (indexed), introducing gift caps and electoral expenditure caps, and increasing public funding of registered political parties and candidates.

The Electoral Reform Act implements recommendations made by the Joint Standing Committee on Electoral Matters (JSCEM) in its reports on the Conduct of the 2022 federal election and other matters.

Consultation

Before the Rules were issued, the Minister considered the general obligation to consult imposed by section 17 of the Legislation Act 2003.

Public consultation on the Rules was not undertaken as the Rules are machinery in nature.

The Australian Electoral Commission (AEC) was consulted on the Rules to confirm alignment with the delivery of reporting systems and stakeholder communications to support stakeholder compliance with the new obligations inserted by the Electoral Reform Act.

The Minister is satisfied that the consultations conducted in relation to the Electoral Reform Act, which authorises the making of these Rules, along with subsequent consultation on the Rules with the AEC, satisfy the requirements of section 17 of the Legislation Act 2003.

Details of the instrument

Details of the Rules are set out in Attachment A.

The Rules are a legislative instrument for the purposes of the Legislation Act 2003.

Commencement

The Rules commence on the day after this instrument is registered on the Federal Register of Legislation.

Impact analysis

The Office of Impact Analysis (OIA) has been consulted in relation to the Rules and an Impact Analysis is not required as the instrument is consequential to a previous decision of government with an impact analysis requirement. OIA reference number: OIA25-09780.

Statement of Compatibility with Human Rights

A Statement of Compatibility with Human Rights is at Attachment B.

The instrument is compatible with human rights because it does not raise any human rights issues.               

GLOSSARY

This Explanatory Statement uses the following abbreviations and acronyms.

 ATTACHMENT A

Details of the Electoral Legislation (Electoral Reform) (Application and Transitional Provisions) Rules 2026

Chapter 1—Preliminary

Part 1—Preliminary

Rule 1—Name

1.       Rule 1 provides that the name of the Rules is the Electoral Legislation (Electoral Reform) (Application and Transitional Provisions) Rules 2026 (the Rules).

Rule 2—Commencement

1.       Subrule 2(1) states that the provisions in column 1 of the table (Commencement table) commence at the time set out in column 2 of the table. As such, the whole of this instrument commences on the day after this instrument is registered on the Federal Register of Legislation.
2.       Subrule 2(2) provides that information in column 3 of the Commencement table is not part of this instrument. Information may be inserted into column 3, or information in column 3 may be edited, in any published version of this instrument.

Rule 3—Authority

1.       Rule 3 states that this instrument is made under the Electoral Legislation Amendment (Electoral Reform) Act 2025 (Electoral Reform Act or amending Act) for the purpose of prescribing rules of a transitional nature.
2.       Schedule 11 of the Electoral Reform Act enables the Minister to, by legislative instrument, make rules prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments or repeals made by that Act.

Rule 4—Definitions

1.       Rule 4 sets out the definitions of expressions used in the Rules. The following key terms are defined in subrule 4(1) of the Rules:
   •          amending Act means the Electoral Legislation Amendment (Electoral Reform) Act 2025, the enabling legislation for the Rules,
   •          Electoral Act means the Commonwealth Electoral Act 1918,
   •          operative day means 1 January 2027,
   •          Referendum Act means the Referendum (Machinery Provisions) Act 1984, and
   •          transition time gift means a gift to a candidate in an election or by-election if the gift is made or received on or after 1 January 2027, and the writ for the election or by-election was issued before 1 January 2027.
2.       Subrule 4(2) provides that if a provision of the Rules relates to an amendment of the Electoral Act and uses an expression that has a particular meaning in the Electoral Act, or in the provisions of that Act that the amendment relates to, the expression has that particular meaning in this instrument.
3.       Subrule 4(3) applies a subrule equivalent to subrule 4(2) for the purposes of expressions with a particular meaning in the Referendum Act.

Part 2—Deferred operation of Electoral Act amendments

1.       Rule 5 defers the operation of certain Electoral Act amendments made by the amending Act to not apply until the start of the operative day of 1 January 2027.
2.   Schedule 11 of the Electoral Reform Act provides that the Minister may, by legislative instrument, make rules that have the effect that a provision as amended, inserted or substituted by the amending Act, does not apply generally for a specified period after commencement. These rules must not specify a period that ends later than 30 June 2027.
3.   Subrule 5(1) defers commencement of the amending Act if, in accordance with section 2 (Commencement) of that Act, an item of that Act commences on 1 July 2026 and that item amends, inserts, substitutes or repeals a provision of the Electoral Act, it will not apply until the start of the operative day, 1 January 2027.
4.   Subrule 5(2) provides that the Electoral Act as in force immediately before the operative day continues to apply until the end of the day before the operative day, being 31 December 2026. This means that the annual return obligations will continue to be provided on a financial year basis, with election returns, nil returns, and other existing concepts of key terms such as candidate and the disclosure threshold, preserved until 31 December 2026. The details of these changes are set out in Chapter 2.
5.   Subrule 5(3) clarifies that subrules 5(1) and 5(2) have effect subject to any other provisions of these Rules. This means that if a rule in this instrument commences the application of a provision on an earlier day or preserves the operation of the Electoral Act as in force before commencement beyond 31 December 2026, the provisions of this instrument take priority.

Chapter 2—Schedules

Part 3—Schedule 1: key definitions

1.   Rule 6 provides that subsection 287(9) (When a person is a candidate) of the Electoral Act, as inserted by Schedule 1 to the amending Act, applies the new definition of candidate to elections for which the writs are issued on or after 1 January 2027. This means that if the writ for an election is issued before 1 January 2027, the existing definition of candidate will continue to apply. This supports consistency for elections that are already underway before the new provisions become operative on 1 January 2027.

1.   Rule 7 applies to section 287F (Requirement to register as a significant third party) of the Electoral Act as amended by Schedule 1 to the amending Act.
2.   Subrule 7(2) clarifies for the avoidance of doubt that for the purpose of the 2027 calendar year:
   •          under paragraph 7(2)(a) references to “calendar year” in subsection 287F(1) of the Electoral Act as amended by Schedule 1 to the amending Act are references to 2027 and, under paragraph 7(2)(b), the words “previous 3 calendar years” in paragraph 287F(1)(a) of the Electoral Act are references to the calendar years 2024, 2025 and 2026. This means that in 2027 a person or entity to which section 287F applies must register as a significant third party if, during any of the 2024, 2025 or 2026 calendar years, the amount of electoral expenditure incurred by or with the authority of the person or entity is $250,000 or more.
   •          under paragraph 7(2)(c) a reference to “previous calendar year” in subparagraph 287F(1)(b)(ii) of the Electoral Act, as amended by Schedule 1 to the amending Act, is a reference to 2026. This means that a person or entity to which section 287F applies must register as a significant third party if:
     1.       the amount of electoral expenditure incurred by or with the authority of the person or entity during the calendar year is more than the third party threshold (as inserted by Schedule 1 to the amending Act to mean $20,000 indexed): and
     2.       during the 2026 calendar year, the amount was at least one-third of the revenue of the person or entity for that year.
3.   Subrule 7(3) clarifies that for the avoidance of doubt, for the purposes of section 287F of the Electoral Act, the definition of electoral expenditure as amended by Schedule 1 to the amending Act applies to the previous calendar year(s) referred to in paragraphs 287F(1)(a) and (b). This means that from on or after the operative day, a person or entity will need to consider the new definition of electoral expenditure when determining if they are required to register as a new significant third party under these sections, even though the expenditure occurred prior to 1 January 2027.
4.   A Note is included under subrule 7(3) to clarify that because of rule 5 of this instrument, for the purposes of section 287F as it applies before the operative day, the definitions as in force immediately before 1 July 2026 continue to apply until the operative day.

1.   Subrule 7(4) provides that the period of 90-days mentioned in subsection 287F(2) (Requirement to register as a significant third party) of the Electoral Act applies regardless of whether the period begins before 1 January 2027. This means that if a person or entity becomes required to be registered as a significant third party, they will have 90-days to do so, regardless of whether that 90-day period commences before 1 January 2027. This ensures that unfulfilled obligations to register are not disrupted by the amendments, and that the 90-day period does not inadvertently reset on 1 January 2027.
2.   Rule 8 is equivalent to subrule 7(4) above and provides that the requirements in subsection 287H(2) (Requirements to register as an associated entity) of the Electoral Act apply regardless of whether the 90-day period begins before 1 January 2027. This means that there is continuity of this requirement over the transition period. If an entity becomes required to be registered as an associated entity, they will have 90‑days to do so, regardless of whether that 90-day period commences before 1 January 2027. This ensures that unfulfilled obligations to register are not disrupted by the amendments, and that the 90-day period does not inadvertently reset on 1 January 2027. 
3.   Rule 9 clarifies that for the avoidance of doubt, when considering the application of section 287J of the Electoral Act on or after the operative day, references to “previous calendar years” in paragraphs 287J(1)(a) to (c) apply the definition of electoral expenditure as amended by Schedule 1 to the amending Act.
4.   A Note is included under rule 9 to clarify that because of rule 5 of this instrument, for the purposes of section 287J as it applies before the operative day, the definitions as in force immediately before 1 July 2026 continue to apply until the operative day.
5.   Rule 10 provides that the definitions of referendum entity and third party threshold in section 3 of the Referendum Act, as amended by Schedule 1 to the amending Act, apply in relation to a referendum expenditure period (defined in section 3 of the Referendum Act) that commences on or after 1 July 2026.

Part 4—Schedule 2: expedited disclosure of donations

Division 1—Amendment of the Electoral Act

1.   Rule 11 provides a transitional rule for content of a report required under subsection 17(2) of the Electoral Act (Reports by the Commission), as amended by Schedule 2 to the amending Act. As amended, the Report is to include new donation disclosure notices given under section 303E (requirements for donors). This rule also preserves the requirement to include the names of all persons who, in the opinion of the Commission, are or may be required to provide an ‘old’ return under old section 305A (Gifts to candidates etc.) in the Report. This means that if an election is called in the transition period and the old 305A obligations continue to apply, the Commission must still include a list of those donors with obligations to furnish those old returns. 
2.   Subrule 11(2) sets out that for the purposes of this rule, the following terms are defined:
   •          amended subsection 17(2A) means subsection 17(2A) of the Electoral Act as amended by Schedule 2 to the amending Act, and
   •          old section 305A means section 305A of the Electoral Act as in force immediately before 1 January 2027.
3.   Subrule 12(1) provides that new section 303A (Requirements for recipients of gifts) of the Electoral Act, as inserted by Schedule 2 to the amending Act, applies in relation to a gift received on or after 1 January 2027.
4.   Subrule 12(2) clarifies that subrule 12(1) and in effect new section 303A, does not apply in relation to a gift that is a transition time gift. This means that the expedited disclosure obligations will not apply in relation to gifts received by a candidate in an election or by-election, the writs for which are issued before 1 January 2027. This supports consistency for elections that are already underway before 1 January 2027.
5.   A Note is included under subrule 12(2) to direct the reader to rule 15 of this instrument which provides for the disclosure of transition time gifts by recipients as per the Electoral Act obligations as in force immediately before the operative day.

1.   Rule 13 provides that section 303E (Requirements for donors of gifts) of the Electoral Act, as inserted by Schedule 2 to the amending Act, applies in relation to a gift made on or after 1 January 2027.
2.   Subrule 13(2) clarifies that subrule 13(1) and in effect section 303E, does not apply in relation to a gift that is a transition time gift. This means that the expedited disclosure obligations will not apply in relation to a gift made to a candidate in an election or by-election, the writs for which are issued before 1 January 2027. This supports consistency for elections that are already underway before 1 January 2027.
3.   A Note is included under subrule 13(2) to direct the reader to rule 16 of this instrument which provides for the disclosure of transition time gifts by donors as per the Electoral Act obligations as in force immediately before the operative day.
4.   Rule 14 provides that section 303L (Requirements for recipients of gifts) of the Electoral Act, as inserted by Schedule 2 to the amending Act, applies in relation to a significant third party, associated entity or third party that credits gifts to a federal account on or after 1 January 2027.
5.   Rule 15 preserves the operation of section 304 (Disclosure of gifts by recipients) of the Electoral Act as in force immediately before 1 January 2027. This means that candidates in an election the writs for which were issued before 1 January 2027 will have a return obligation as per the existing law. This ensures that if a person is a candidate in an election called before the operationalisation of the new expedited disclosure rules (as applied under rule 12 set out above), they are only required to follow the one set of reporting obligations, being those that applied at the time the writ for that election was issued. This means there will be no gap in disclosure for potential transition time elections, and reporting by candidates will be consistent.
6.   A Note is included under rule 15 to prompt the reader that section 304 of the Electoral Act as in force immediately before the operative day is, in effect, section 304 as in force immediately before 1 July 2026. This is because rule 5 of this instrument defers the operation of the amending Act until the operative day.
7.   Rule 16 preserves the operation of section 305A (Disclosure of gifts by donors) of the Electoral Act as in force immediately before 1 January 2027. This means that a person or entity that makes a donation to a candidate in an election, the writs for which were issued before 1 January 2027, will have a return obligation as per the law at the time the writ for the election was issued. For example, if the writs for a by-election are issued on 28 December 2026, and a donor makes a gift to a candidate in that by‑election on that day, and another gift to that candidate on 2 January 2027, the donor will not need to follow different donation rules for the same election. This rule supports consistency for donors in this transitional period.
8.   A Note is included under rule 16 to prompt the reader that section 305A of the Electoral Act as in force immediately before the operative day is, in effect, section 305A as in force immediately before 1 July 2026. This is because rule 5 of this instrument defers the operation of the amending Act until the operative day.
9.   Rule 17 provides for the transition of annual donor obligations for the disclosure of gifts to political parties and significant third parties under repealed section 305B of the Electoral Act.
10.   Subrule 17(1) preserves the operation of section 305B (Gifts to political parties and significant third parties) of the Electoral Act as in force immediately before 1 July 2026 in relation to the financial year ending on 30 June 2026. This means that a person or entity that makes a gift to a political party or a significant third party in the 2025-26 financial year will have a continuing obligation until their annual return is provided under the existing law.
11.   Subrule 17(2) provides that section 305B of the Electoral Act as in force immediately before 1 July 2026 continues to apply in relation to the period of 1 July to 31 December 2026 as if references to “financial year” were references to that period. Paragraph 17(2)(b) amends 305B(1) to replace the words “within 20 weeks of the end of the financial year” with the words “by 11 March 2027”.  
12.   This creates a modified annual return requirement to bridge the transition between a financial year and calendar year reporting obligation. This will mean that a person or entity to which section 305B applies will be required to provide their annual return for the period 1 July to 31 December 2026 by 11 March 2027. This timeframe is appropriate as the content of the return is only for the preceding 6 months and is a slight extension of the new annual return preparation timeframes of 8 weeks which will apply to the 2027 calendar year annual return.
13.   A Note is included under subrule 17(2) clarifying that the rule will mean that entities must provide an annual return for the 1 July to 31 December 2026 period as if it were a full financial year, and the return must be provided to the AEC by 11 March 2027.
14.   Subrule 17(3) modifies the timing rule for the AEC requirement to publish the details of the annual return provided under section 305B of the Electoral Act, to provide that the AEC must publish the annual return “by 22 April 2027”.

1.   Rule 18 provides for the transition of annual donor obligations for the disclosure of gifts to members of the House of Representatives and Senators under repealed section 306 of the Electoral Act.
2.   Subrule 18(1) preserves the operation of section 306 (Disclosure of gifts to members of the House of Representatives and Senators) of the Electoral Act as in force immediately before 1 July 2026. This means that a person or entity that makes a gift to a member of the House of Representatives or a Senator in the 2025-26 financial year will have a continuing obligation until their annual return is provided under the existing law.
3.   Subrule 18(2) provides that section 306 of the Electoral Act as in force immediately before 1 July 2026, continues to apply in relation to the period 1 July to 31 December 2026, as if references to “financial year” were references to that period. Paragraph 18(2)(b) amends 306(5)(a) to replace the words “before the end of 20 weeks after the end of the financial year” with the words “by 11 March 2027”. 
4.   This creates a modified annual return requirement to bridge the transition between a financial year and calendar year reporting obligation, consistent with equivalent obligations outlined at subrule 17(2) above.
5.   A Note is included under subrule 18(2) clarifying that the rule will mean that entities must provide an annual return for the 1 July to 31 December 2026 period as if it were a full financial year, and the return must be provided by 11 March 2027.
6.   Subrule 18(3) modifies the timing rule for the AEC requirement to publish the details of the annual return provided under section 306 of the Electoral Act, to provide that the AEC must publish the annual return “by 22 April 2027”.
7.   Rule 19 preserves the operation of section 306A (Certain loans not to be received) of the Electoral Act as in force immediately before 1 January 2027. This means that for loans received before 1 January 2027, the existing law will continue to apply. For loans received on or after 1 January 2027, the new law as inserted by Schedule 2 to the amending Act will apply.
8.   A Note is included under subrule 19 to prompt the reader that section 306A of the Electoral Act as in force immediately before the operative day is, in effect, section 306A as in force immediately before 1 July 2026. This is because rule 5 of this instrument defers the operation of the amending Act until the operative day.
9.   Rule 20 preserves the operation of section 307 (Nil returns) of the Electoral Act as in force immediately before 1 January 2027 and continues to apply in relation to a candidate or member of a group in an election or by-election the writs for which were issued on or before that day. For elections the writs for which are issued on or after 1 January 2027, the nil return obligation is repealed on 1 January 2027 by Schedule 2 to the amending Act.
10.   A Note is included under rule 20 to prompt the reader that section 307 of the Electoral Act as in force immediately before the operative day is, in effect, section 307 as in force immediately before 1 July 2026. This is because rule 5 of this instrument defers the operation of the amending Act until the operative day.

Division 2—Amendment of the Referendum Act

1.   Rule 21 clarifies the application of section 109GA (Requirements for referendum entities) of the Referendum Act, as inserted by Schedule 2 to the amending Act. This rule means that expedited donation disclosure requirements will apply in relation to a referendum gift period that commences on or after 1 July 2026.

Part 5—Schedule 3: gift caps

1.   Rule 22 provides that section 302BA (Meaning of exceeds the annual gift cap) of the Electoral Act, as inserted by Schedule 3 to the amending Act, applies in relation to gifts made on or after 1 January 2027.
2.   Rule 23 provides that section 302CAA (Gifts to Senate groups) of the Electoral Act, as inserted by Schedule 3 to the amending Act, applies in relation to gifts made on or after 1 January 2027.
3.   Rule 24 provides that section 302CB (Gifts to which this Subdivision applies) of the Electoral Act, as inserted by Schedule 3 to the amending Act, applies to a gift made on or after 1 January 2027. Section 302CB sets out the kinds of gifts that are subject to gift caps.
4.   Rule 25 provides that section 302CD (Gifts exceeding the annual gift cap) of the Electoral Act, as inserted by Schedule 3 to the amending Act, applies in relation to annual gifts as defined in subsection 302CB(1) of the amending Act, made on or after 1 January 2027.  
5.   Rule 26 provides that section 302CE (Gifts exceeding by-election gift cap) of the Electoral Act, as inserted by Schedule 3 to the amending Act, applies in relation to
   by-election gifts as defined in subsection 302CB(2) of the amending Act, made on or after 1 January 2027. This rule clarifies that the by-election gift cap only applies to
   by-election gifts that are made for the purposes of a by-election the writs for which are issued on or after 1 January 2027.

1.   Rule 27 provides that section 302CF (Gifts exceeding Senate-only election gift cap) of the Electoral Act, as inserted by Schedule 3 to the amending Act, applies in relation to Senate-only election gifts, as defined in subsection 302CB(3) of the amending Act, made on or after 1 January 2027. Consistent with the explanation of the by-election gift cap above in rule 26, the Senate-only election gift cap applies to Senate-only election gifts made for the purpose of a Senate-only election the writ for which was issued on or after 1 January 2027.
2.   Rule 28 provides that section 302CG (Annual gift cap resets if a general election is held in a calendar year) of the Electoral Act, as inserted by Schedule 3 to the amending Act, applies in relation to a general election the writs for which are issued on or after 1 January 2027.
3.   Rule 29 clarifies the timing for the application of section 302CH (Receipt for certain gifts) of the Electoral Act, as inserted by Schedule 3 to the amending Act. This rule provides that recipients of gifts must provide a receipt, as set out in new section 302CH, in relation to amounts paid by a person on or after 1 January 2027.
4.   Rule 30 provides that section 302CI (Gifts exceeding the overall gift cap) of the Electoral Act, as inserted by Schedule 3 to the amending Act, applies in relation to an annual gift as defined in new subsection 302CB(1) of the Act, made on or after 1 January 2027.
5.   Rule 31 provides that section 302CJ (Gifts exceeding the State and Territory gift cap) of the Electoral Act, as inserted by Schedule 3 to the amending Act, applies in relation to an annual gift as defined in new subsection 302CB(1) of the Act, made on or after 1 January 2027.
6.   Rule 32 provides that section 302CK (Overall gift cap and State and Territory gift cap reset if general election is held in a calendar year) of the Electoral Act, as inserted by Schedule 3 to the amending Act, applies in relation to a general election the writs for which are issued on or after 1 January 2027.
7.   Rule 33 sets out transitional arrangements for indexation of certain amounts inserted and amended by the amending Act.
8.   Subrule 33(1) provides that section 321A (Indexation of the disclosure threshold) of the Electoral Act as in force immediately before 1 July 2026 does not apply in relation to the indexation year beginning on 1 July 2026. This means that there will be no change to the value of the disclosure threshold between the end of the 2025-26 financial year and 31 December 2026.
9.   Subrule 33(2) provides that new section 321A (Indexation of gift cap amounts etc. each calendar year) as inserted by Schedule 3 to the amending Act, applies in relation to an indexation year beginning on or after 1 January 2028. This means that the following definitions will not index on 1 January 2027, providing certainty for stakeholders that for the 2027 calendar year the value of the following amounts will apply as passed in the amending Act:
   •          annual gift cap ($50,000 as defined in section 302B of the amending Act)
   •          by-election gift cap ($50,000 as defined in section 302B of the amending Act)
   •          Senate-only election gift cap ($50,000 as defined in section 302B of the amending Act)
   •          third party threshold ($20,000 as defined in subsection 287(1) of the amending Act)
10.   Subrule 33(3) provides that section 321AA (Indexation of disclosure threshold after a general election) of the Electoral Act, as inserted by Schedule 3 to the amending Act, applies in relation to a general election that is held on or after the operative day. This provision clarifies that the disclosure threshold will not index until the first 1 January after the next general election. This provides certainty for stakeholders that the disclosure threshold ($5,000 as amended by Schedule 1 to the amending Act), will apply from the outset of the new disclosure regime.

Part 6—Schedule 4: expenditure caps

1.   Rule 34 is an application rule clarifying how expenditure cap provisions inserted by Schedule 4 to the amending Act will apply.
2.   Subrule 34(1) provides that sections 302AMA (Federal cap), 302AMB (Divisional cap), 302AMC (Senate cap), 302ANA (Independent House of Representatives cap), 302AOA (Independent Senate cap), 302APA (Capped entity cap), 302APB (Capped entity Divisional cap) and 302APC (Capped entity Senate cap) of the Electoral Act, as inserted by Schedule 4 to the amending Act, apply in relation to electoral expenditure incurred by the relevant person or entity on or after 1 January 2027.
3.   Subrule 34(2) provides that sections 302AMD (By-election cap), 302ANB (Independent House of Representatives by-election cap) and 302APD (Capped entity by-election cap) of the Electoral Act, as inserted by Schedule 4 to the amending Act, apply in relation to expenditure incurred during a by-election period that begins on or after 1 January 2027. 
4.   Subrule 34(3) provides that sections 302AME (Senate-only election cap), 302AOB (Senate-only election Independent Senate cap) and 302APE (Capped entity Senate‑only election cap) of the Electoral Act, as inserted by Schedule 4 to the amending Act, apply in relation to expenditure incurred during a Senate-only election period that begins on or after 1 January 2027.
5.   Subrule 35 provides that section 321AB (Indexation of amounts relating to electoral expenditure) of the Electoral Act, as inserted by Schedule 4 to the amending Act, applies in relation to an indexation year beginning on or after 1 January 2028. This means that the following definitions will not index on 1 January 2027, providing certainty to stakeholders that for the 2027 calendar year the value of the following amounts will apply as passed in the amending Act:
   •          Capped entity cap ($11,250,000 as per 302ALA of the Electoral Act, as inserted by Schedule 4 to the amending Act)
   •          capped entity Divisional cap ($100,000 as per 302ALA of the Electoral Act, as inserted by Schedule 4 to the amending Act)
   •          capped entity Senate base amount ($25,000 as per 302ALA of the Electoral Act, as inserted by Schedule 4 to the amending Act)
   •          Divisional cap ($800,000 as per 302ALA of the Electoral Act, as inserted by Schedule 4 to the amending Act)
   •          Federal cap ($90 million as per 302ALA of the Electoral Act, as inserted by Schedule 4 to the amending Act)
   •          Senate base amount ($200,000 as per 302ALA of the Electoral Act, as inserted by Schedule 4 to the amending Act)
   •          exceptions for campaign office accommodation ($20,000 respectively as per subparagraphs 302AQE(1)(b)(i), (ii) and (iii) and paragraph 302AQE(3)(b) of the Electoral Act, as inserted by Schedule 4 to the amending Act)
   •          exception for design and printing costs for certain how-to-vote cards ($20,000 as per paragraph 302AQF(b) of the Electoral Act, as inserted by Schedule 4 to the amending Act).

Part 7—Schedule 5: returns

1.   Subrule 36(1) provides for the continuation of requirements to provide returns in relation to a financial year ending 30 June 2026. This subrule provides that sections 314AB (Annual returns by registered political parties and significant third parties), 314AEA (Annual returns by associated entities), 314AEB (Annual returns by third parties), 314AEC (Annual returns relating to gifts received by third parties for electoral expenditure), 314AED (Annual returns relating to gifts received by members of the House of Representatives or Senators) of the Electoral Act as in force immediately before 1 July 2026, continue to apply on or after that day in relation to the financial year ending on 30 June 2026.
2.   This means that a person or entity with a return obligation under any of the sections identified in subrule 36(1) continues to have that obligation until the annual return for the 2025-26 financial year is fulfilled. This ensures that there is no transparency gap as the financial disclosure regime transitions to a calendar year reporting model.
3.   Subrule 36(2) provides that sections 314AB, 314AEA, 314AEB, 314AEC and 314AED of the Electoral Act as in force immediately before 1 July 2026, continue to apply, in relation to the period 1 July to 31 December 2026, as if references in those sections to a “financial year” were references to that period. This means that the 1 July to 31 December 2026 period is treated as if it were a financial year.
4.   Paragraphs 36(2)(b)-(d) bring forward the timing of the obligation for a person or entity captured by section 314AB(1), 314AEA(1), 314AEB(3)(a) and 314AEC(3)(a) to provide the annual return from 16 weeks or 20 weeks, as applicable, to be replaced with the words “by 11 March 2027”. The amended timeframe is consistent with the rules set out at subrules 17(2) and 18(2) of this instrument as applied to annual donor returns.  
5.   A Note is included under subrule 36(2) to clarify that this means that the annual return covering the period of 1 July to 31 December 2026 is due to be lodged with the AEC by 11 March 2027.
6.   Subrule 36(3) modifies the timing rule for the AEC requirement to publish the details of the annual return provided under Division 5A of the Electoral Act, as in force immediately before 1 July 2026, to provide that the AEC must publish the annual return “by 22 April 2027”.
7.   Rule 37 provides that section 310A (Candidate returns) of the Electoral Act, as inserted by Schedule 5 of the amending Act, does not apply in relation to an election the writs for which were issued before the operative day. This supports consistent obligations for candidates that are already actively participating in an election before 1 January 2027. As discussed at rule 15 above, candidates in elections the writs for which are issued before 1 January 2027 will be required to provide a candidate return under the existing section 304 election return provisions, ensuring there is no gap in disclosure or transparency.
8.   The Note under rule 37 advises that the reader should also see rule 6 of this instrument, which relates to the definition of candidate.
9.   Rule 38 provides for the transition of disclosure obligation for significant third parties registered in 2027.
10.   Subrule 38(1) provides that this section applies to a person or entity if the person or entity becomes registered as a significant third party in the 2027 calendar year.
11.   Subrule 38(2) provides that section 310G (New significant third party returns), of the Electoral Act, as inserted by Schedule 5 to the amending Act, applies as if the following apply:
    •          the reference to “previous calendar year” in subsection 310G(2) means the transition period of 1 July to 31 December 2026, and
    •          the reference to the “approved form” in 310G(3)(b) were the approved form used for the purposes of section 314AB of the Electoral Act as in force before the operative day, and
    •          subsection 310G(4) does not apply.
12.   In effect, subrule 38(2) shortens the return obligation to the six months prior to operationalisation and uses the previous form. This will mean that information required for the six-month transition period is based on a consistent set of content requirements and definitions.
13.   Subrule 38(3) provides that the return required by 310G for the 2027 calendar year must comply with subsection 314AB(2) of the Electoral Act as in force immediately before the operative day, as if the references in that subsection:
    •          to “the registered political party or significant third party” were references to “the person or entity” and
    •          to “financial year” were references to the “transition period”.

1.   Subrule 38(4) provides an exception to the requirement to provide a newly registered significant third party return under section 310G, if the person or entity was registered as an associated entity during the transition period and they provided a return under section 314AEA of the Electoral Act in relation to that period.

1.   Subrule 39(1) provides that this section applies to a person or entity that becomes registered as an associated entity in the 2027 calendar year.
2.   Subrule 39(2) provides that section 310H (New associated entity returns) of the Electoral Act, as inserted by Schedule 5 to the amending Act, applies as if the following apply:
   •          the reference to “previous calendar year” in subsection 310H(2) means the transition period of 1 July to 31 December 2026, and
   •          the reference to the “approved form” in 310H(3)(b) were the approved form used for the purposes of section 314AEA of the Electoral Act as in force before the operative day, and
   •          subsection 310H(4) does not apply.
3.   In effect, subrule 39(2) shortens the return obligation to the six months prior to operationalisation and uses the previous form. This will mean that information required for the six-month transition period is based on a consistent set of content requirements and definitions.
4.   Subrule 39(3) provides that the return required by section 310H for the 2027 calendar year must comply with subsection 314AEA(1) and (3) of the Electoral Act as in force immediately before the operative day, as if the references in these subsections:
   •          to “the entity” were references to the “person or entity” and
   •          to “financial year” were references to the “transition period”.
5.   Subrule 39(4) provides an exception to the requirement to provide a newly registered associated entity return under section 310H, if the person or entity was registered as a significant third party during the transition period and they provided a return under section 314AEA in relation to that period.
6.   Rule 40 preserves the obligation under section 309 (Returns of electoral expenditure) of the Electoral Act as in force before the operative day. The electoral expenditure return requirement continues to apply on and after 1 January 2027 in relation to an election the writs for which were issued before that day.
7.   Note 1 included under rule 40 prompts the reader that section 309 of the Electoral Act as in force immediately before the operative day is, in effect, section 309 as in force immediately before 1 July 2026. This is because rule 5 of this instrument defers the operation of the amending Act until the operative day.
8.   Note 2 included under rule 40 advises that the reader should also see rule 6 of this instrument which relates to the definition of candidate.
9.   Rule 41 clarifies that new section 311A (Annual returns of income and expenditure of Commonwealth Departments) of the Electoral Act, as amended by Schedule 5 to the amending Act, applies in relation to payments made on or after 1 January 2027. The amendments, which omit “disclosure threshold” and substitute “third party threshold”, apply to payments made by Commonwealth departments on or after 1 January 2027. This means that the third party threshold (as defined in new subsection 287(1) of the Electoral Act) will be the relevant threshold Commonwealth departments apply when reporting for the 2026-2027 financial year.
10.   Rule 42 preserves the operation of sections 313 (Nil returns) and 314 (Two or more elections on the same day) of the Electoral Act as in force before 1 January 2027. This requirement continues to apply on and after 1 January 2027 in relation to an election the writs for which were issued before 1 January 2027. The preservation of these provisions for transition time elections is consistent with the preservation of section 309 (Returns of electoral expenditure) discussed in rule 40 above.
11.   Note 1 included under rule 42 prompts the reader that the Electoral Act as in force immediately before 1 July 2026 continues in force until the end of the day before the operative day. This is because rule 5 of this instrument defers the operation of the amending Act until the operative day.
12.   Note 2 included under rule 42 advises that the reader should also see rule 6 of this instrument which relates to the definition of candidate.

Part 8—Schedule 6: Commonwealth campaign accounts

1.                        Rule 43 clarifies the operation of new paragraph 126(2)(da) (Requirements relating to registration of political parties) of the Electoral Act, as inserted by Schedule 6 to the amending Act. New paragraph 126(2)(da) as inserted by the Act requires that details of any federal accounts held by that political party must be included on the registration application. Rule 43 clarifies that this applies to applications made on or after the operative day or pending applications.
2.                        Subrule 43(1) provides that paragraph 126(2)(da) applies in relation to an application for registration of a political party made on or after 1 January 2027, or any such application still pending on 1 January 2027. This means that those applicants will be required to provide details of the party’s federal account(s) for their application to proceed.
3.                        Subrule 43(2) provides that if the application is pending immediately before the operative day, the Electoral Commissioner must provide the applicant with a letter explaining the effect of the rule, no later than 1 February 2027, and if the applicant does not provide the Electoral Commissioner with the requisite federal account details before 1 March 2027, the application for registration is taken to be withdrawn. 
4.                        Subrule 43(3) provides that if a request to vary an application is made, the application as varied must be treated as if it were a new application for the purposes of this section. This will mean that the processing time for the application resets as if it were a new application to ensure the AEC have the necessary time to assess and process the varied application.
5.                        Rule 44 clarifies the operation of new paragraph 287K(2)(c) (Application for registration) of the Electoral Act, as inserted by Schedule 6 to the amending Act. This includes the requirement to provide details of a federal account during the application process for registration as a significant third party or associated entity.
6.                        Subrule 44(1) provides that paragraph 287K(2)(c) applies in relation to an application for registration as a significant third party or associated entity made on or after 1 January 2027, or an application made before 1 January 2027 that is still pending.
7.                        Subrule 44(2) provides that if the application is pending immediately before the operative day, the Electoral Commissioner must provide the applicant with a letter explaining the effect of this section, no later than 1 February 2027, and if the applicant does not provide the Electoral Commissioner with the requisite federal account details before 1 March 2027, the application for registration is taken to be withdrawn. 
8.                        Subrule 44(3) provides that if a request to vary an application is made, the application as varied must be treated as if it were a new application for the purposes of this section. This will mean that the processing time for the application resets as if it were a new application to ensure the AEC have the necessary time to assess and process the application.
9.                        The Note under subrule 44(3) directs the reader to sections 287F and 287H of the Electoral Act which prohibit a person or entity from incurring electoral expenditure or fundraising certain amounts if the person or entity is not registered as a significant third party or associated entity.
10.                        Rule 45 provides that subsection 292FA(1) (Use of federal accounts – obligation in relation to electoral expenditure) of the Electoral Act, as inserted by Schedule 6 to the amending Act, applies in relation to electoral expenditure incurred on or after 1 January 2027.
11.                        Rule 46 provides that subsection 292FA(2) (Use of federal accounts – obligation in relation to gifts) of the Electoral Act, as inserted by Schedule 6 to the amending Act, applies in relation to a gift of money received on or after 1 January 2027.  
12.                        Rule 47 provides that subsection 292FA(3) (Use of federal accounts – obligation for agents of registered political parties) of the Electoral Act, as inserted by Schedule 6 to the amending Act, applies to a cheque received by an agent of a political party on or after 1 January 2027.  
13.                        Rule 48 provides that subsection 292FA(4) (Use of federal accounts – obligation to credit only required or permitted amounts) of the Electoral Act, as inserted by Schedule 6 to the amending Act, applies in relation to an amount credited to a federal account on or after 1 January 2027.   
14.                       Rule 49 states that paragraph 298A(ca) (Form of claim) of the Electoral Act, as inserted by Schedule 6 to the amending Act, applies to requirements relating to the form of a claim for election funding of more than $10,000, except if the claim is being made by the agent of a registered political party, and must specify the federal account in which election funding is to be paid.
15.                        Subrule 49(1) provides that paragraph 298A(ca) of the Electoral Act as inserted by Schedule 6 to the amending Act, applies in relation to a claim for election funding of more than $10,000 made on or after 1 January 2027.
16.                        Subrule 49(2) clarifies that paragraph 298A(ca) also applies in relation to a claim made that is pending immediately before 1 January 2027. In such cases, the 20‑day period mentioned in subsection 298C(1) (Determination of claim) of the Electoral Act, does not include any day before or including the day that the claimant gives the Electoral Commission written details of a federal account kept for the purpose of Part XX of the Electoral Act. Further, the claim is taken to be withdrawn if such written details are not given to the Electoral Commission within 6 months after polling day for the election.
17.                        Subrule 49(3) clarifies that nothing in Rule 49 requires details to be provided in relation to a claim made by the agent of a registered political party. This is because existing section 299A already deals with the nomination of a bank account for the purposes of a party receiving payments of election funding.

Part 9—Schedule 7: administrative funding and election funding

1.                        Rule 50 clarifies timing for the application of sections 302AB (Administrative assistance funding for registered political parties) and 302AC (Administrative assistance funding for independent members) of the Electoral Act, as inserted by Schedule 7 to the amending Act. For the purposes of the first entitlement to quarterly payment of administrative assistance funding, this will be based on the immediately preceding quarter, being the quarter beginning on 1 October 2026.
2.                        Rule 51 provides that the amendments made by Part 2 of Schedule 7 to the amending Act, being the increased rate of public election funding, apply to elections the writs for which are issued on or after 1 January 2027.
3.                        Rule 52 provides that for the purpose of section 298J (Advance payment of election funding) of the Electoral Act, as inserted by Schedule 7 Part 3 to the amending Act, a “qualifying election” will be any election the writs for which are issued on or after 1 March 2025. This means that the federal election in May 2025 is a qualifying election and that regulations can be made about entitlements to an advance payment of election funding based on the outcome of that election.
4.                        Rule 53 provides that section 321 (Indexation) as in force immediately before 1 July 2026 does not apply in relation to the relevant period beginning on 1 January 2027 specified in the definition of group amount at subsection 287(1), and at subparagraph 293(2)(a)(i) and paragraphs 204(2)(a) and 295(2)(a).
5.                        This means that the new public funding rate of $5, as inserted by Schedule 7 to the amending Act, will not have an indexation increase until 1 July 2027. This provides certainty for stakeholders that the new $5 public funding rate, and not a higher rate, will apply at the outset of the new disclosure regime.

Part 10—Schedule 8: Senate groups

1.                        Rule 54 clarifies the application of Schedule 8 of the amending Act as it relates to Senate groups.
2.                        Subrule 54(1) clarifies that the amendment to section 298 of the Electoral Act, as amended by Schedule 8 to the amending Act, applies in relation to Senate elections the writs for which are issued on or after the operative day. This preserves the process for making claims for election funding for Senate elections the writs for which are issued before 1 January 2027.
3.                        Subrule 54(2) provides that subsections 302D(6) and 302F(8) (Candidates and groups) of the Electoral Act, as in force immediately before the operative day, will continue to apply in relation to a gift made before that day.
4.                        This means that for candidates in a group for an election for which the writ is issued before 1 January 2027, the current attribution of liability under the foreign donation laws will continue to apply. For elections the writs for which are issued on or after 1 January 2027, the new definition of candidate will apply, including new section 302CAA (as inserted by Schedule 3 to the amending Act) which deems gifts are received by the individual candidate members of a Senate group, not the group. This will mean that the individual candidate or their agent will be liable for compliance with foreign donation laws.

Part 11—Schedule 9: compliance and enforcement powers

1.                        Rule 55 provides that the new anti-avoidance provisions inserted by Schedule 9 Part 2 to the amending Act, apply to schemes to avoid the application of certain obligations under Part XX of the Electoral Act. This applies in relation to schemes entered into on or after 1 January 2027, as well as schemes that a person begins to carry out or that are carried out from that time.
   

ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Electoral Legislation (Electoral Reform) (Application and Transitional Provisions) Rules 2026

The Rules are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Rules

The Electoral Legislation (Electoral Reform) (Application and Transitional Provisions) Rules 2026 (the Rules) support the transition from the current electoral financial disclosure and reporting system to the new system established by the Electoral Legislation Amendment (Electoral Reform) Act 2025 (Electoral Reform Act). The Rules clarify the timing and application of the new provisions. In particular, the Rules:

• detail when existing obligations of the funding and disclosure regime cease and new obligations commence, and
• preserve the operation of certain reporting obligations to ensure consistency of obligations for elections that may occur during the transitional period.

Human rights implications

The purpose of this instrument is to make application and transitional rules to support the transition from the current electoral funding and disclosure regime to the new scheme established by the Electoral Reform Act. The Explanatory Memorandum to the Electoral Reform Act sets out the human rights implications for the measures to which this instrument relates.

The Rules positively engage the right to political participation under Article 25 of the International Covenant on Civil and Political Rights (ICCPR).

Consistent with the Statement of Compatibility with Human Rights provided in the enabling legislation being the Electoral Reform Act, the transitional arrangements set out in the Rules, addressed in turn below, are objective, legitimate and proportional because they:

• are provided for by law,
• serve a genuine public interest by protecting free, fair and informed voting, essential to Australia’s system of representative government, and
• apply to an objectively defined group of entities who freely choose to play a prominent role in political debate or provide financial or administrative support to those who do.

Right to political participation under Article 25 of the ICCPR

Article 25(a) of the ICCPR provides that ‘every citizen shall have the right and opportunity…without unreasonable restrictions: to take part in the conduct of public affairs, directly or through freely chosen representatives’. Any restriction on the right to take part in public life and elections must be based on objective and reasonable criteria.

This right may be subject to permissible limitations, where these limitations are provided for by law and are necessary for public order or maintaining respect for the rights or reputations of others. Limitations must also have a legitimate objective, be reasonable and necessary to achieve the desired purpose, and be proportionate to the need on which the limitation is predicated.

Conclusion on overall compatibility with human rights

The instrument is compatible with human rights because it does not raise any human rights issues.

Senator the Hon Don Farrell, Special Minister of State