Media release – Joint Standing Committee on Electoral Matters, Parliament of Australia, 20 June 2023
Committee recommends significant changes to electoral system
The Joint Standing Committee on Electoral Matters has released its interim report into the 2022 federal election, and has recommended significant reforms to Australia’s electoral system.
Committee Chair Ms Kate Thwaites MP said, ‘Australians are rightly proud of our electoral system, but it is important that we continue make sure that it is trusted, relevant and fit for purpose. The evidence we have heard has allowed the Committee to develop clear goals for reform: to increase transparency in election donations and curb the influence of big money, to build the public’s trust in electoral and political processes, and to encourage participation in our elections’.
The report makes 15 recommendations, focused on three main topics: political donations and electoral expenditure, truth in political advertising and encouraging Aboriginal and Torres Strait Islander participation in elections.
The Committee continues its work on its inquiry into the 2022 election, with further hearings scheduled for Friday 23 June and two days in the Northern Territory next week. The final report is scheduled for release later this year.
Further information about the inquiry, including published submissions and hearing transcripts, is available on the inquiry webpage.
Excerpt from report – Recommendations
2.242 The Committee recommends that the Australian Government lower the donation disclosure threshold to $1,000.
2.245 The Committee recommends that the Australian Government introduce ‘real time’ disclosure requirements for donations to political parties and candidates.
2.247 The Committee recommends that the Australian Government gives consideration to amending the definition of ‘gift’ in the Electoral Act to ensure it meets community expectations of transparency in political donations.
2.248 The Committee recommends that the Australian Government introduce donation caps for federal election donations.
2.251 The Committee recommends that the Australian Government introduce expenditure (also known as spending) caps for federal elections.
2.254 The Committee recommends that donation caps and expenditure caps apply to third parties and associated entities.
2.255 The Committee recommends the Australian Government introduce a requirement that all political parties, members of Parliament, candidates, associated entities and third parties be required to establish a Commonwealth Campaign Account for the purpose of federal elections, to better allow for disclosure and monitoring.
2.256 The Committee recommends the Australian Government introduces a new system of administrative funding to recognise the increased compliance burden associated with a reformed system.
2.257 The Committee recommends the Australian Government introduce a new system of increased public funding for parties and candidates, recognising the impact changes a reformed system will have on private funding in elections.
2.258 The Committee recommends the Australian Government provide the Australian Electoral Commission with additional resources to support, implement and enforce these reforms.
3.180 The Committee recommends that the Australian Government develop legislation, or seek to amend the Commonwealth Electoral Act 1918, to provide for the introduction of measures to govern truth in political advertising, giving consideration to provisions in the Electoral Act 1985 (SA).
3.181 The Committee recommends that the Australian Government consider the establishment of a division within the Australian Electoral Commission, based on the principles currently in place in South Australia, to administer truth in political advertising legislation, with regard to ensuring proper resourcing and the need to preserve the Commission’s independence as the electoral administrator.
3.184 The Committee recommends that, providing the Committee receives a reference to conduct a review of the next federal election, consideration of the new framework be included in terms of reference to the Committee. Such consideration could include the effectiveness of the revised arrangements, and identification of any further improvements.
4.44 Consistent with the recommendation made in this Committee’s Advisory report on the Referendum (Machinery Provisions) Amendment Bill 2022, the Committee recommends that the Australian Government strengthen the opportunities for electoral enfranchisement and participation to allow the Australian Electoral Commission to support increased enrolment and participation, particularly of Aboriginal and Torres Strait Islander people, including in remote communities.
4.46 The Committee recommends the Government resource the Australian Electoral Commission to work directly with Aboriginal and Torres Strait Islander community organisations to increase Indigenous enrolment and participation, particularly in remote communities.
Media release – The Australia Institute, 19 June 2023
Truth in political ads, election reform welcome, but devil is in the detail
The Australia Institute welcomes the Joint Standing Committee on Electoral Matters’ interim report for its inquiry into the conduct of the 2022 election, in which Australia Institute research and recommendations are cited often.
The committee recommends:
- A lower donation disclosure threshold ($1,000, down from over $15,000) and real-time disclosure of donations.
- Caps on political donations and how much can be spent to promote a candidate ahead of an election (“spending caps”), with regard to setting spending caps for independents higher in acknowledgement of the structural support provided to party candidates.
- Truth in political advertising laws modelled on the successful South Australian laws, administered by the AEC, with the committee citing Australia Institute research on how many voters were exposed to misleading ads at last year’s election.
- A new system of increased public funding for parties and candidates, recognising the impact the recommended changes would have on private funding.
- The AEC be supported to increase enrolment and participation, particularly of Aboriginal and Torres Strait Islander peoples.
The majority of the committee calls for donation and expenditure caps for election campaigns, but acknowledges the issue – identified by the Australia Institute’s Advantages of incumbency report – that incumbents have significant electoral advantages, which new entrants have traditionally attempted to overcome using raised funds.
Additional comments from the Greens, Kate Chaney MP and Senator David Pocock identify important considerations for electoral reform, including:
- The case for more parliamentarians, including more senators in the ACT.
- The danger of electoral laws being circumvented.
- A transparency register of political donations.
- The advantages of incumbency to be accounted for in electoral law reform.
- Prohibiting political donations from government contractors and social harm industries.
Coalition MPs issued a dissenting report which disagrees with some, but not all, of the committee’s recommendations.
On truth in political advertising
“Australia Institute research consistently finds that the vast majority of Australians support truth in political advertising laws, and with the committee recommending them there should be no barrier to getting these reforms done at the federal level,” says Bill Browne, Director of the Australia Institute’s Democracy & Accountability Program.
“In Australia, it is perfectly legal to lie in a political ad – and it shouldn’t be.
“The committee’s support for truth in political advertising laws should spur Parliament to pass these laws before the next election, to preempt a fake news free-for-all.
On donation disclosure changes
“Australians have a right to know who is funding our parliamentarians – and real-time disclosure laws and lower donation disclosure thresholds will help make that transparent.
On donation and spending caps
“Piecemeal changes to electoral law, like introducing donation and expenditure caps without changing how candidates are publicly funded, can have perverse outcomes and unintended consequences.
“Because incumbent MPs and parties receive millions of dollars in public funding and entitlements, caps on donations and spending disproportionately affect independents and emerging parties.
“If you cap how much can be spent per electorate, that holds back new independent and minor party candidates building name recognition – while doing little to stop established political parties flooding the market with region-wide party-focused ads.
“Well-intentioned laws purporting to reduce the influence of corporate money could, if poorly designed, have the opposite effect: keeping loopholes open for entrenched interests and existing party funders while pulling up the drawbridge on new entrants.”
Final remarks
“The committee’s interim report identifies important principles for democratic reform, but the devil is in the detail. In addition, the committee has left difficult questions about the size of Parliament and the implementation of these reforms for its final report.
“Calling for more politicians may not be popular, but it’s the right thing to do with Australia Institute polling research finding most Australians have never spoken or written to their local member and would not feel comfortable approaching them if they had an issue.
“Our electoral system is long due for reform, but it must be done carefully with an eye to how every part of the political ecosystem will be affected,” Mr Browne said.
