CTH political donation disclosure laws are fundamentally changing – are you ready?

Scope of political donations subject to the Commonwealth electoral law

Political donations (called “gifts” by the Commonwealth Electoral Act) capture:

1. gifts to (or for the benefit of) federally registered political parties, State branches of federally registered political parties and “significant third parties”
2. gifts to candidates / Senate groups
3. gifts for a federal purpose to members of the House of Representatives and Senate

The disclosure obligations will apply to gifts (over the disclosure thresholds – see below) that are made for a federal purpose to (or for the benefit of) and received by:

1. federally registered political parties
2. State branches of federally registered political parties
3. members of the House of Representatives and Senators
4. candidates at federal elections (including by-elections)
5. a person or entity who (at the time the donation is made) is registered as an associated entity, significant third party or nominated entity
6. a person or entity who (at the time the donation is made) is a third party

Caps on political donations

There are currently no caps under the Commonwealth Electoral Act on the amount of political donations that can be made

Donors must comply with 3 concurrent caps:

1. An “annual gift cap” of $50,000 (indexed annually) for each calendar year for political donations to the same entity. The annual gift cap resets if a general election is held in a calendar year. Note: Separate caps apply for by-elections and Senate-only elections.
2. An “overall gift cap” (which is calculated as the annual gift cap x 32 (ie $1.6m) (indexed annually)) for each calendar year) for political donations to federally registered political parties, State branches of federally registered political parties, members of the House of Representatives and Senators, candidates at federal elections (including by-elections) and nominated entities.
3. A “State and Territory gift cap” (which is calculated as the annual gift cap x 5 (ie $250,000) (indexed annually) for each calendar year) for political donations connected to a State or Territory (ie political donations to State branches of a registered political party; a member of the House of Representatives, Senator or a candidate in a particular State or Territory).

Civil penalties apply for exceeding these caps.

The caps don’t affect donations made for a non-electoral purpose, or donations related to State, Territory, or local government elections.

Threshold for disclosing political donations

Persons or entities who make political donations to the same entity must disclose those donations if they (individually or cumulatively) equal or exceed $16,900* during a financial year

*This is the disclosure threshold for FY 2024-25

Persons or entities who make political donations must disclose those donations if they (individually or cumulatively) equal or exceed $5,000 (indexed annually) in a calendar year.

“Real time” disclosure

Donors must disclose political donations that they make:

1. during an election period - within 15 weeks after polling day; and
2. outside the election period – before the end of 20 weeks after the end of the financial year.

Donors must disclose political donations that they make:

1. during an election period - within 7 days after the time the donation is made; and
2. outside an election period - by the 21st day of the following month.

Clarification around the treatment of function tickets

A ticket to a political function/event is considered a political donation. However, there is significant debate and uncertainty about how to calculate the disclosable value. 

The amount that a donor pays as a contribution, entry fee or other payment to attend, or otherwise obtain a benefit from, a fundraising venture or function that forms part of the net proceeds of the venture or function is considered a reportable political donation.

The onus is on the recipient to provide the donor with a receipt of the amount considered that is a ‘political donation’.