Holmes a Court’s concerns were echoed by the left-wing Australia Institute,which said in a recent report that limits on donations could entrench the dominance of major parties.
“Sitting parliamentarians rarely lose elections. This is at least in part because of the enormous financial advantages of incumbency,including offices,staff,travel and communications budgets,” the think tank’s Bill Browne said.
But the Centre for Public Integrity,a leading transparency organisation,said the committee needed to push for a major overhaul including a cap on donations.
“This inquiry represents the first opportunity in more than 15 years to get big money out of federal politics. The Commonwealth has allowed wealth to buy access and wield undue influence for too long,and we strongly support efforts to level the playing field and restore public trust via enhanced transparency,donations caps,and expenditure caps,” the centre’s research director,Catherine Williams,said.
States including NSW ($6700 a year) and Victoria ($4000 over four years) already limit the amount a person or business can donate to a political party. NSW ($226,000 for a lower house seat) also restricts how much can be spent by a candidate in an electorate.
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None of these rules apply at a federal level,where an unlimited amount can be donated and spent.
Labor has alreadysignalled support for truth in advertising laws – which would ban false campaign messaging – and expenditure caps,and lowering the donation disclosure threshold to $1000 as well as publishing donation details in real-time.
The government hopes to reform the electoral system in a bipartisan way. However,some Liberals worry that reducing the influence of donations would enhance the role of third-party outfits such as unions,which conservatives believe would rig the system in Labor’s favour.
Political donations have steadily risen in Australia and the two major parties collected more than $100 million each before last year’s election.
Palmer saturated the country with advertising before last year’s poll,spending $117 million on campaigning for his United Australia Party. Climate 200 and Atlassian co-foundersMike Cannon-Brookes and Scott Farquhar,who both donated to Climate 200,were in the top seven donors.
The chair of the joint standing committee,Labor’s Kate Thwaites,said she was prohibited from commenting before the report was published.
Farrell said he would study the interim report’s recommendations and pursue potential legislative changes after the committee delivered a final report.
The Coalition’s shadow special minister of state,Jane Hume,said:“Labor has suggested a raft of changes that they’d like to make that range from donations reform,giving foreign citizens the vote and increasing the size of parliament. We will wait to consider these matters through that proper committee inquiry.”
Cut through the noise of federal politics with news,views and expert analysis from Jacqueline Maley. Subscribers can sign up to our weekly Inside Politics newsletterhere.