Independent MPs lash out at Labor, Coalition for cutting a deal to cap political donations and spending

Independent MPs angry at Labor and the Coalition for cutting a deal to cap political donations and spending have lashed out and made a threat for the next election.

Independent MPs furious at Labor and the Coalition for cutting a deal to significantly cap political donations and spending are threatening less co-operation with the party who forms government at the next election.

The crossbenchers have also called for a High Court challenge to the sweeping election reforms that sailed through parliament on Thursday with the support of both major parties, arguing the changes disadvantage independent and minor party candidates.

Independent “teal” Curtin MP Kate Chaney said she had “no doubt” there would be a legal challenge to the proposal, which limits candidates from accepting more than $50,000 from a single donor and caps campaign spending at $800,000 per electorate.

“I think that (legal challenge) needs to run its course to see whether these laws are unconstitutional,” she said.

Independent “teal” Curtin MP Kate Chaney says there would be a legal challenge. Picture: NewsWire / Martin Ollman

The independents have argued the changes, due to take effect from July 2026, protect major parties because they remain able to spend up to $90 million nationally on noncandidate specific campaigning.

ACT Senator David Pocock said no one was arguing for “big money in politics,” but they did want to “create a level playing field”.

“You have to take into account the advantages of being an incumbent,” he said.

“This isn’t about me, it probably suits me … but this is about someone other than the major parties … representing them.”

In a tense exchange in the corridors of parliament on Thursday, Warringah MP Zali Steggall took aim at Special Minister of State Don Farrell, arguing the bill had “secret loopholes” that protected the major parties.

“The only people that will be able to participate in elections will be union members,” she said, before clarifying, “well, members of the Labor Party”.

Mr Farrell later responded to the incident saying “Zali will do what Zali will do,” insisting he had tried to have a “calm approach” to the election reforms.

“If an independent can’t get their message out with an $800,000 spend, then maybe they shouldn’t be in the game,” he said.

“This puts downward pressure on both the independent’s ability to spend money, but also their opponent’s ability to spend money and the expenditure of the major political parties as a result of this legislation will be 30 per cent less than it was at the last election.”

Special Minister of State Don Farrell claimed the bill had secret loopholes. Picture: NewsWire / Martin Ollman

In addition to the election reforms, Labor fast tracked several other bills through the parliament, increasing speculation Anthony Albanese intends to call the federal election before the next sitting week is due in late March.

Among the legislation pushed through were changes to early education that guarantee families at least three days of care per work and scrap the so-called “activity test” that required parents to do a minimum amount of volunteering or work to qualify for subsidies.

The Parenthood CEO Georgie Dent said the changes would ensure 126,000 more Australian children would have access to child care and its benefits

“There is a mountain of evidence showing that early childhood education and care helps children to perform better at school, makes them more likely to finish school and attend university, and less likely to engage in crime or be reliant on our health and social welfare systems,” she said.

Originally published as Independent MPs lash out at Labor, Coalition for cutting a deal to cap political donations and spending