The Victorian government will consider the recommendations and respond in due course,a spokeswoman said.
“We acknowledge and thank the electoral review expert panel for their contribution to further strengthen the integrity of Victoria’s electoral and political donations system,” she said.
The panel investigated how the state’s new donation regime functioned in 2022,the first time reforms were tested at an election.
The Centre for Public Integrity on Tuesday welcomed the recommendation to remove the nominated entity exemption that director and Melbourne Law School Professor Joo-Cheong Tham said had unduly favoured the major parties.
“The panel should be congratulated for its comprehensive and rigorous report. Its recommendations to plug gaps in Victoria’s caps on political donations are to be welcomed,” Tham said.
Loading
The panel recommended capping how much a candidate or MP can spend on their own election campaign,and said third-party campaigners and associated entities – such as unions – should be limited to spending no more than $1 million every election period.
But Tham said it was “deeply troubling” the panel did not recommend capping expenditure. Instead,the panellists decided restriction donations acted as a de facto expenditure cap.
“The panel was persuaded by submissions received from several[political parties] that a cap on donations,if appropriately designed,can act as a de facto expenditure cap,” the report said. “That approach would minimise the complexity and administrative cost associated with the introduction of expenditure caps across all election participants.”
Labor,the Liberals and Nationals all argued against campaign expenditure caps,as was recommended by the Centre for Public Integrity,the Accountability Round Table,constitutional law Professor Anne Twomey and the Greens.
Loading
Six other jurisdictions in Australia have expenditure caps.
Tham said using donation rules as a de facto expenditure cap would “allow the major parties to unfairly outspend their competitors,who tend to receive less proportionately in terms of political donations and public funding”.
Electoral commissioner Sven Bluemmel welcomed the review findings and said the VEC supported recommendations on how to govern political funding and donation disclosures.
“The VEC supports a level playing field for all electoral participants. We appreciate the panel’s recommendations to close known gaps in political donation rules and extend some of these laws to local council elections,” Bluemmel said.
The independent review panel also said it was clear political finance laws for local government elections need “significant reform”.
Parliament’s electoral matters committee is separately reviewing the 2022 state election.
Start the day with a summary of the day’s most important and interesting stories,analysis and insights.Sign up for our Morning Edition newsletter.