Labor slams teals over spending as movement targets Dutton’s seat

Donors who back the teals and consider themselves progressives don’t realise “they are participants in the problem”, senior Albanese minister Don Farrell has warned as he flags a suite of reforms to election donations that could curb the way independents fundraise.

“A focus on outcomes, on consensus, and on genuine reform means that we do not draw a distinction between conservative dollars and progressive dollars,” Farrell, the special minister of state, said in a keynote speech to progressive think tank The McKell Institute on Tuesday.

Farrell said his planned changes to the nation’s election system, which he pledged to reveal within weeks, were being pilloried by rich-listers such as Clive Palmer as well as those who helped fund the teal independents who defeated six Liberal MPs in 2022.

Special Minister of State Don Farrell, Opposition Leader Peter Dutton and independent MP Zali Steggall.Credit: Alex Ellinghausen

Teal-inspired independents will target more Liberal electorates at the next election, including Dutton’s Queensland seat of Dickson, where independent MP Zali Steggall halaunched a campaign to find a progressive candidate.

Teal MPs and the convener of their main fundraiser Climate 200, Simon Holmes a Court, have repeatedly raised concerns about strict election funding rules that would hinder candidates without a party machine from competing with big parties. They argue similar changes in Victoria have had a chilling effect.

But Farrell emphasised the centrality of the Westminster, two-party system and directed his most direct riposte to the teal argument against election spending limits and donation caps.

Climate 200 executive director Byron Fay warned Labor’s proposed changes could hurt democracy by embedding the two-party system.

“All Australians should be hyper-vigilant that the major parties don’t tilt the playing field even further in their favour, as they did in Victoria when they gave each other $17 million in taxpayers’ funds and made it almost impossible for anyone else to mount competitive campaigns,” he said, noting Climate 200 was a crowdfunding network of 22,400 people.

Teals in Victoria are mulling a High Court challenge against the state-based laws. There is also a chance teal-aligned figures will attempt to block Farrell’s national laws.

Farrell’s plans will include:

• caps on donations (likely in the tens of thousands of dollars a year);
• a limit on how much a party can spend in an individual seat (under $1 million);
• lowering the disclosure threshold for donations to $1000 and;
• creating a real-time process to make donations public.

The veteran minister has said privately he will find a way to pass a bill before the next election whether the Coalition supports it or not.

Farrell and his Liberal counterparts have had early talks over the bill. But Prime Minister Anthony Albanese and Dutton have not discussed the laws, according to several senior government sources speaking on the condition of anonymity.

Dutton holds his seat of Dickson by a margin of 1.7 per cent from Labor.

Steggall, a teal MP who defeated former Liberal prime minister Tony Abbott in the Sydney seat of Warringah in 2019, last week launched an event in Dickson, where dozens of volunteers have signed up to support a yet-to-be-selected independent.

An independent will almost certainly not win the seat, but their preferences could assist Labor.

The “Dickson Decides” website has been promoted on the social media page supporting the community independents’ movement.

The website states: “We know the only way to win better representation for Dickson is to build a powerful grassroots campaign.

“Consistency in messaging and strong branding are critical, and we provide the necessary tools and training to ensure our volunteers are well-prepared.”

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