Independent senators, MPs rage over Labor, Coalition deal on electoral reform

Crucial independent crossbench MPs have criticised both Labor and the Coalition over a proposed deal to pass sweeping electoral reforms.

Independent senators and MPs have raged against a Labor and Coalition deal to push through major electoral reforms which will significantly limit donations independent parties will be able to receive.

It’s understood Labor has agreed to the Coalition’s demands to increase the Bill’s proposed caps on individual donations from $20,000 to $50,000.

Under current laws, donations are uncapped.

The minimum disclosure threshold for donations – currently set at $16,900 – will also be increased from $1000 to $5000.

Total spending caps during election campaigns have remained the same at $800,000 per electorate, while registered parties can spend up to $90m nationally.

The reforms also include provisions for real-time donations disclosures during elections, however the measures will not come into effect until July 1, 2026.

Teal independent for the WA seat of Curtin, Kate Chaney, said it was a “major party stitch up”.

Kate Chaney lashed the deal on electoral reforms as a ‘major party stitch up’. Picture: NewsWire / Martin Ollman

Speaking to reporters on Thursday ahead of the Bill’s expected passage in the Senate, Ms Chaney stood alongside a chorus on independents MPs and senators including Allegra Spender, Zali Steggall, Sophie Scamps, Monique Ryan, Lidia Thorpe, David Pocock, Dai Le, and Andrew Wilkie.

“This will mean that taxpayers pay more for less choice. The major parties will get about two and a half times the public funding they got at the 2022 election by 2028, and it will be much harder for independents to challenge major parties,” Ms Chaney said.

“This changes who can get into parliament, and it has had no scrutiny.

“It has not gone to a parliamentary inquiry. The experts have not had a chance to really understand what impact this has.”

While the government says the biggest suite of electoral reforms in four decades will curb the political influence of billionaires, Ms Le, who sensationally ousted Labor in its heartland seat of Fowler in 2022, said the lowered election spending levels would hamper community candidates from entering politics.

“Somebody in a multicultural community out in South Western or Western Sydney in particular, who’s going to try and run as an independent … it’s going to be hard for them,” she said.

“It definitely will prevent anybody from actually giving it a go.”

Fowler MP Dai Le said the reduced spending caps on elections, and lowered donations thresholds will prevent community independents from running in elections. Picture: NewsWire / Martin Ollman

The major upset to the influential independent cross bench comes as polling is tipping a minority government as the outcome of the federal election, which means either Labor or the Coalition will need to seek support from the crossbench to form government.

While independents did not directly answer whether repealing the caps would affect their desire to work with the government, Ms Chaney said “transparency and accountability in our in our democracy” was a “priority” and would factor into “deciding who I could work with”.

Warringah MP, Ms Steggall said the lack of negotiations on electoral reform had impacted her trust in the government.

“All I can say from this experience is I have no confidence in (Special Minister of State) Don Farrell and he has the approval of the Prime Minister, so that absolutely has an impact for me in terms of good faith negotiations,” she said.

Waringah MP Zali Steggall criticised the government’s lack of negotiations on the reforms. Picture: NewsWire/ Martin Ollman

Tasmanian MP for Clark, Mr Wilkie said he believed that major parties will be punished at the polls over the electoral reforms.

This comes as the primary vote for major parties has steadily decreased in the last 40 years in both federal and state elections.

“The two party system is dying, and they can do whatever they want, they can pull whatever stunt they want … but their vote will keep going down, and people like us will keep getting elected,” he said.

“And it will be the major party’s fault, and a stunt like this today will be in the mix when they look at the entrails when they work out why they failed.”

Originally published as Independent senators, MPs rage over Labor, Coalition deal on electoral reform