Overview
While Subdivisions 1 and 2 of the Electoral Act 1985 establish broad prohibitions on political donations and loans, Subdivision 3 introduces specific rules for regulated designated participants. These participants may still receive donations and loans within strict limits, such as a $5,000 individual cap per financial year, provided they comply with disclosure and return requirements.
Who Is a regulated designated participant?
This includes:
- Entitled registered political parties
- Entitled candidates
- Entitled groups
- Third parties (excluding ACNC-registered entities).
Electoral donations
Individual cap on donations
- A donor may contribute up to $5,000 per financial year to a regulated designated participant.
- Multiple donations from the same donor are aggregated to assess whether the cap is exceeded.
Prohibited donations
- It is unlawful to accept donations that exceed the $5,000 cap.
- If an excess donation is received:
- It must be returned to the donor, or
- If that’s not possible, it must be transferred to the Electoral Commissioner for deposit into the consolidated account.
Exception
- Donations paid into a federal account under the Commonwealth Electoral Act 1918 are exempt from the cap.
General cap on donations during election periods
What Is the general cap?
- During the capped expenditure period, total donations must not exceed the participant’s applicable expenditure cap.
Consequences of breach
- If exceeded, the agent may be liable to repay twice the excess to the Crown.
- No penalty applies if the excess is promptly returned or transferred.
Electoral loans
Individual cap on loans
- A donor may lend up to $5,000 per financial year to a regulated designated participant.
- Loans from the same person are aggregated.
- Loans from financial institutions are exempt.
Prohibited loans
- Loans exceeding the cap must be returned or transferred to the Electoral Commissioner.
- Loans paid into a federal account are exempt.
General cap on loans during election periods
- Total loans during the capped expenditure period must not exceed the expenditure cap.
- Excess loans may result in the agent being liable for twice the excess.
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