Andrews introduces sweeping changes to political donations

TAXPAYERS might have to foot the bill for most of political parties’ activities under a planned revamp of Victoria’s political donations laws.

Victorian Premier Daniel Andrews wants to cap political donations

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TAXPAYERS might have to foot the bill for most of political parties’ activities under a planned revamp of Victoria’s political donations laws.

In a surprise move, Daniel Andrews’s Labor government has flagged a $4000 cap on election donations from a ­single person or entity.

Foreign donations would be banned, and donations of more than $1000 would have to be disclosed in real time.

Now, any individual can ­donate as much as they like to a party. Only sums of more than $13,200 must be disclosed.

Victorian Premier Daniel Andrews with school council president Ian Taylor. Picture: Joe Castro

There is a long lag between when donations are made and when they are declared.

The Premier said the reforms, which he said would end “secret payments” and shine a light on the murky world of political donations, would necessitate greater public funding of political parties, and of the Victorian Electoral Commission.

Parliament would debate how much more this would be.

At 2014’s state election, about $10 million from the public purse went to parties and candidates. At just $1.646 a vote, this is one of the nation’s lowest public funding rates.

If Victoria followed interstate examples — the ACT pays $8 a vote — parties could pocket tens of millions of dollars more from taxpayers.

Mr Andrews says the new laws will be the “strictest donation laws in the country”. Picture: Nicole Garmston

Mr Andrews said party affiliates, such as trade unions or business groups, would be subject to the new $4000-a-term cap on donations and to the disclosure rules, meaning they would be unable to funnel vast sums to parties without disclosing information publicly.

Liberal leader Matthew Guy said reform was “well and truly overdue”, but further consultation was needed.

The Opposition Leader said he would consider an increase in public funding of parties to cover any shortfalls caused by new limits on donations.

“It’s a system that works well in Canada, and I think a greater level of public funding would need to be considered,” Mr Guy said.

Greens MP Greg Barber said his party had not been consulted, and would scrutinise any changes.

Reason Party MP Fiona Patten said she supported greater transparency in donations and real-time disclosure, but the donations cap could make fundraising difficult for small political parties or individual candidates.

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