The Electoral Reform Bill addresses a longstanding issue in Australian politics - the huge and outsized influence of wealthy donors and uncapped campaign spending. Passed in November 2024, the reforms won't take effect until the election after this upcoming one, providing ample time for all political participants to adjust to the new framework.

There will be four key pillars working together to create a more transparent and equitable electoral system:

1. Enhanced disclosure requirements

2. Caps on political donations

3. Reasonable limits on campaign expenditure

4. Revised public funding arrangements

   
   

Real-Time Disclosure

For too long, voters have been kept in the dark about who funds political campaigns until well after election day. The Bill fixes this by:

• Reducing the disclosure threshold from $16,900 to $1,000

• Requiring donations to be reported within 7 days during election periods

• Mandating 24-hour disclosure in the critical week before and after polling day

• Implementing monthly disclosures outside election periods

These changes mean voters can make informed decisions with knowledge of who is funding candidates and parties before they cast their ballots - a fundamental improvement to our democratic process that has broad public support.

Limits on Political Donations

The Bill introduces sensible caps on political donations, helping to reduce the risk of "clientelism" where elected officials might feel beholden to major donors:

• $20,000 annual cap on donations from a single donor to any one political party or candidate

• Aggregate cap limiting the total amount any donor can contribute across all parties and candidates

• State and territory caps to prevent circumvention through state branches

These measures significantly reduce the ability of wealthy individuals or corporations to exert disproportionate influence through million-dollar donations that have become increasingly common in recent elections.

Caps on spending

Uncapped campaign spending has led to an arms race where the wealthiest campaigns can dominate public discourse. The Bill addresses this by establishing:

• Federal cap of $90 million for registered political parties

• Divisional cap of $800,000 per electorate

• Senate caps proportional to the number of electorates in each state

• Independent candidate caps that allow for competitive campaigns

  
  

[1] https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r7280

[2] https://www.abc.net.au/news/2025-02-12/labor-coalition-strike-electoral-reform-deal/104928032

[3] https://junkee.com/articles/electoral-reform-bill-monique-ryan-interview

[4] https://theconversation.com/political-finance-law-reforms-will-reduce-big-money-in-politics-but-will-rich-donors-be-the-ultimate-winners-243906

[5] https://ministers.pmc.gov.au/gorman/2024/electoral-legislation-amendment-electoral-reform-bill-2024-second-reading-speech#:~:text=This%20Bill%20will%20increase%20the,preference%20votes%20in%20an%20election.