When changes made by the Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018 (the EFDR Act) were introduced, the Australian Greens raised concerns that the changes:
Failed to achieve the ostensible purpose of preventing foreign interference;
Risked discouraging charities and other civil society organisations from engaging in advocacy; and
Failed to reduce the corrupting influence of political donations.
These concerns persist. We support the position expressed by the civil society submitters to this inquiry that, as the sector has adapted to comply with the EFDR Act, no additional changes should be made that would impose further burdens and discourage democratic participation.
Foreign interference
As outlined in the Chair’s report, many submitters and witnesses expressed the view that the EFDR Act was not effectively curtailing foreign influence, given ongoing opportunities for foreign companies and individuals to channel donations through Australian resident or local companies.
In response to this view, the Chair points to the anti-avoidance provisions in s.302H of the Commonwealth Electoral Act 1918 as a mechanism to prevent these efforts to circumvent the ban on foreign donations.
However, in evidence to the Committee, Professor Anne Twomey said that s.302H did not prevent donations from Australian residents or companies registered in Australia acting at the behest of foreign nationals:
From that point of view, it is not an anti-avoidance issue and it's not a question of the AEC having the ability to do anything; it is simply the way the act operates. I'm sure all of us would think it would be preferable if it didn't operate in that way. But, as I pointed out, the reason it does is constitutional constraints that are a result of earlier High Court decisions; and given that we can't get around them without an amendment to the Constitution, and we have to live with them, the only way I can see of reducing foreign influence is by reducing everybody's influence.
The Australian Greens agree.
Ironically, the Chair’s report notes with concern that civil society can “siphon” funds through other organisations to avoid transparency. Yet recent changes to the Commonwealth Electoral Act 1918 championed by this Government explicitly facilitate donations being siphoned through federal political branches to avoid more stringent donations restrictions under State laws.
The Greens did not support this undermining of State efforts to regulate political influence and maintain that ss.302CA and 314B of the Commonwealth Electoral Act 1918 should be repealed and rigorous, nationally harmonised disclosure and donation rules adopted.
Impacts on civil society
In a representative democracy, civil society groups of all sizes should be able to influence policy outcomes through electoral change, including by running public campaigns that put pressure on the political system to change public policy. Legislative amendments should not discourage or restrict this political engagement.
To minimise ongoing administrative burdens that could hinder participation, we support the views of civil society submitters to this inquiry that:
the current definition of ‘electoral matter’ is well understood and should be retained;
the term ‘political campaigner’ has adverse connotations for some civil society organisations and should be replaced with ‘large third party’;
the amount of electoral expenditure required before an organisation will be considered a ‘political campaigner’ / ‘large third party’ should be retained at $500,000.
Missed opportunity for effective reforms
The Australian Greens have consistently argued for serious reform of electoral funding and disclosure to restore integrity to our democratic processes. Policy outcomes should not be sold to the highest bidder.
There was consistent support amongst submitters for measures to improve transparency and reduce the undue influence of political donations. The Greens reiterate our calls for the following measures to truly clean up politics:
Lowering the donation disclosure threshold to $1,000, and requiring disclosure to be made in real-time on an easy to search public website;
Banning all donations from for-profit industries in sectors with a history of seeking influence;
Capping the amount of money all other individuals and organisations can donate each year to a political party or candidates at $1,000; and
Capping election expenditure by political parties, candidates and associated entities.
Critically, genuine reform must be complemented by more rigorous parliamentary and lobbying codes of conduct and a strong, independent national integrity commission.