Political parties scoop up $60m of your cash under new election funding laws

A motley crew of micro-parties, including Derryn Hinch’s Justice Party, will rake in taxpayer-funded handouts worth millions of dollars despite ­receiving a tiny proportion of votes in last weekend’s Victorian election, under new election funding laws.

A motley crew of micro-parties will rake in taxpayer-funded handouts worth millions of dollars despite ­receiving a tiny proportion of votes in last weekend’s Victorian election.

New election funding laws will deliver a windfall to political parties for each candidate who wins more than four per cent of the vote in their seat.

The parties will also receive even bigger cash payments in advance to bankroll their campaigns if they plan to run again in 2022.

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The political funding changes introduced by the Andrews Government earlier this year end big corporate donations but will cost taxpayers up to $60 million a term.

The major parties are the biggest winners under the changes but minor parties and independents also stand to cash in.

A Herald Sun analysis shows that Derryn Hinch’s Justice Party stands to reap at least $1.6 million over four years. So far it has won just 3.7 per cent of the statewide Upper House vote but it may end up with four MPs in the chamber because of complex preference deals.

The sum includes further bonuses of $140,000-$800,000 a term that are paid to parties for each MP elected.

And it is separate from an MP’s wages and allowances of $160,000 a year, paid by the taxpayer.

Losing independent candidates including ex-Geelong mayor Darryn Lyons, former senator Ricky Muir, Pascoe Vale’s Oscar Yildiz and comedian Catherine Deveny will receive $1.75 per first-preference vote, plus another $6 per vote if they plan to run at the next state election.

Ten Upper House seats are likely to be shared by six minor parties, including the disgruntled taxi drivers’ Transport Matters and the Animal Justice Party.

But final results will not be known until December 11.

A swing of almost 5 per cent to Labor in Saturday’s election will see the Andrews Government pick up at least 71 of the 128 seats across both Houses of Parliament.

Vote-counting is continuing but Labor will receive at least $13.1 million for its candidate’s votes, plus $7.1 million in new administration payments over the next four years.

Though the Greens may be left with just three MPs after a horror campaign, they will still reap at least $4.1 million in combined public funding.

The Coalition will receive at least $16.8 million over the next four years. Though a lower sum than expected, as a result of a crash in their primary vote, this will help the cash-strapped Liberal Party.

The electoral funding changes were brought in this year to reduce political parties’ reliance on donations from businesses and individuals.

The administration payments give parties $800,000 over four years for their first elected MP, $280,000 for the second, and $140,000 for every MP after that, up to 45 overall.

Monash University political expert Dr Nick Economou said: “The community will quite rightly question how the (minor parties) got in, and why they are entitled to hundreds of thousands of dollars.”

He said there was a “disconnect” between the aim of the funding overhaul and the consequences of funnelling more cash to little-known parties and independents.

When the laws were debated this year, Liberal MP Gordon Rich-Phillips questioned the scale of the public funding, saying that parties with very little popular support could get big taxpayer-funded perks.

If parties decide to run in 2022, they are eligible to receive 40 per cent of their future campaign funding up front, and then payments of 20 per cent every year.

Premier Daniel Andrews said on Monday that a cross-party committee would review the election results, including the messy Upper House preference deals, to see whether further changes to electoral laws were needed.

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