Labor’s donations laws include $20m to help administrative burden

MORE than $20 million of taxpayer money will be poured into the bank accounts of Victoria’s state political parties each term to help them cope with changes to donation laws.

MORE than $20 million of taxpayer money will be poured into the bank accounts of Victoria’s state political parties each term to help them cope with changes to donation laws.

Draft legislation created by the Andrews Government to get rid of “dodgy donations” shows political parties will get $40,000 a year for each MP they have in state parliament, to comply with “new disclosure and reporting requirements”.

Independent MPs would receive the public funds directly, and payments will rise in line with inflation each year.

Quarterly payments of $10,000 per MP would be distributed in advance by the Victorian Electoral Commission, and must be used by parties for “non-campaigning purposes and held in a separate administration bank account”.

DEVIL IS IN THE DETAIL OF NEW DONATION LAWS

VICTORIAN POLITICAL ELECTION REFORM 2018

ANDREWS INTRODUCES CHANGES TO POLITICAL DONATIONS

If the legislation is passed by state parliament, it will cost taxpayers $2.56 million before the November state election.

Draft legislation created by the Andrews Government to get rid of ‘dodgy donations’ shows political parties will get $40,000 a year for each MP they have in state parliament. Picture: AAP

The administrative burden on parties is increasing because an Andrews Government Bill will cap donations at $4000 a term from individual donors, and any gift over $1000 must be publicly declared within 21 days.

Foreign donations will be banned. Anyone flouting the laws faces 10 years in jail.

Parties will also reap $6 for every vote their candidates get at a state election in the Lower House, and $3 a vote for every Upper House vote. The money-per vote increase will cost taxpayers about $35 million over four years.

Some state MPs have expressed surprise at the massive $160,000-a-term “administration payment”, which amounts to a total of $20.5 million for the 128 MPs in parliament.

“It’s pretty incredible,” one MP said. Labor would be the biggest beneficiary — if it held its seats at the next election it would reap about $9.8 million.”

State parliament sources say there could be a grassroots blow back from the fact the ­administration payment would be under control of a party’s ­director rather than MPs.

Special Minister of State Gavin Jennings said the reforms were about cleaning up the murky donations system. Picture: Nicole Garmston

Those MPs or candidates also would be stopped from ­accepting major donations they could spend in their seat — meaning party bosses would have much more control of spending in individual seats.

Senior Liberals also have concerns that the current wording of the Bill would not allow its main benefactor, the Cormack Foundation, to be a nominated entity because it does not “hold and maintain assets for the party”.

Special Minister of State Gavin Jennings said the reforms were about cleaning up the murky donations system.

The government says Victoria will have the strictest ­political donation laws in Australia under its plan.

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