South Australia’s political donations ban to become law
Premier Peter Malinauskas’ push to outlaw political donations in South Australia is set to pass parliament this year, after the government secured support from the Liberal Party and other Upper House MPs.
Malinauskas announced on Monday afternoon that the government will introduce a revised political donations ban bill into parliament on Tuesday, expecting it to pass before the end of the year.
The Premier said the legislation – which outlaws all donations and gifts to parties, MPs, groups and candidates – now has the support of the Liberal Party, the Greens and One Nation.
Its passage through parliament will see donations banned in time for the 2026 state election.
“We know this has broad support in the community,” Malinauskas said in a statement.
“I’m very pleased that it also has broad support in the parliament, including from Liberals, Greens and Independents.
“We have listened carefully to the advice of experts and crafted this bill in close consultation with democracy groups, other major and minor parties, and independents, to ensure we have a system which is fair, workable and able to withstand legal challenge.”
The announcement comes five months after Malinauskas revealed the government’s draft legislation to outlaw political donations. The Premier conceded today the original bill was “deficient in a number of respects”.
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The ban, a Labor 2022 state election promise and long-held policy ambition of Malinauskas, was subject to a longer-than-expected drafting period due to government concerns it could face a High Court challenge.
The legislation comprises three parts: a ban on political donations to registered political parties, MPs, groups and candidates; a restructured public funding system to compensate for lost donation revenue; and a mandatory expenditure cap for all parties and candidates.
The draft legislation was criticised by civic groups, including the Centre for Public Integrity and the South Australian Council of Social Service (SACOSS), which argued it could create an “unfair playing field” between the major and minor parties as well as independents.
Other groups, ranging from the Liberal Party to the Greens and left-leaning thinktank The Australia Institute, criticised the draft legislation for not covering election spending by third-party campaigners. This led to concerns that unions or businesses could run “US-style Super PAC” campaigns independent of political parties.
But the government announced today that it will introduce a $450,000 per election cycle spending cap on third parties.
Third parties will also be subject to donation limits of $5000 per donor, with charities exempted.
Opposition leader Vincent Tarzia said “there remains some concern with respect to the ability of third parties, such as unions, to run campaigns worth hundreds of thousands of dollars under the proposed reforms”.
Tarzia said the matter will be considered at a Liberal Party room meeting tonight and “we await a final copy of the bill and reserve the right to make sensible amendments if required”.
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He also acknowledged “that the Government has consulted with us, and addressed some of the concerns raised”.
The government made other changes to ensure the ban does not favour incumbent MPs.
Under the previous legislation, newly registered parties and independent candidates not sitting in parliament were exempt from the donations ban and eligible to raise donations of up to $2700. That donations cap has been lifted to $5000.
Another point of criticism about the previous legislation was that the major parties would have been eligible for around $700,000 in “operational funding” every half year while minor parties could only access $47,000 multiplied by their number of sitting MPs.
Under the earlier scenario, the Labor Party would have received $5.6 million per four-year election cycle, while the Greens, which have two sitting MPs, would receive $752,000.
Under the new legislation, the Labor Party would receive $6.4 million, the Greens $1.96 million and an independent $160,000 over a four-year election cycle. This funding is classed as administrative funding and cannot be used for political advertising.
Funding per first preference vote is also increasing from $3.80 to $5.50 for political parties. This money can be spent on political campaigning.
Independents will receive a higher $8.50 per first preference vote, although this is capped once they reach 33 per cent of the primary vote share.
SACOSS chief executive Ross Womersley, one of those to raise concerns with the original bill, said the new version of the bill is “much stronger”.
“[It] is much more likely to facilitate the democratic purpose that the Premier and the government have in mind,” he said.
“It is certainly much fairer, and there are provisions now that as far we can tell will enable new entrants to the parliament.
“It’s inevitable that the incumbent will have some advantages, particularly the major parties, and frankly I’m not sure how you compete with that, but this does make provisions for new candidates to be supported and to participate in the electoral process.
“So I think that’s a welcome thing.”
