Commonwealth Electoral Amendment (Real Time Disclosure of Political Donations) Bill 2019 [2019] AUSStaCSBSD 107 (16 October 2019)

• Commonwealth Electoral Amendment (Real Time Disclosure of Political Donations) Bill 2019
• Broad scope of civil penalty provisions 28

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Commonwealth Electoral Amendment (Real Time Disclosure of Political Donations) Bill 2019

Purpose	This bill seeks to amend the Commonwealth Electoral Act 1918 to require the agent or financial controller of the party, branch or campaigner to advise the Electoral Commission of any donation received by the party, branch or campaigner
Sponsor	Ms Rebekha Sharkie MP
Introduced	House of Representatives on 16 September 2019

Broad scope of civil penalty provisions ^[28]

1.57 The bill seeks to amend the Commonwealth Electoral Act 1918 (Electoral Act) to require the registration of gifts and donations in real time. Proposed section 305C provides that where a person makes a gift to a registered political party, state branch or political campaigner, the agent or financial controller of that party, branch or campaigner must notify the Electoral Commission. Notice would be required as soon as practicable, or in any case no later than five business days after receiving the gift. Contravention of these requirements may attract a civil penalty of up to 60 penalty units ($12,600) or three times the value of the gift—whichever is higher.

1.58 The explanatory memorandum states that the bill seeks to require agents and financial controllers to notify the Commission of any donation 'that meets or exceeds the disclosure threshold' (currently $13,800).^[29] However, there appears to be no mention of the disclosure threshold on the face of the bill, nor any guidance as to the nature of the gifts that must be disclosed.^[30]

1.59 The committee is therefore concerned that proposed section 305C may require notification of any gift made to a registered political party, state branch or campaigner, irrespective of its value or significance. The committee is also concerned that the bill seeks to apply a relatively significant financial penalty to contraventions of this requirement in circumstances where the penalty imposed may not be commensurate with the actual or perceived impact of the gift on the integrity of the electoral process.

1.60 In the event that the bill progresses further through the Parliament, the committee may request further information from the legislation proponent.

1.61 The committee otherwise draws its scrutiny concerns to the attention of senators, and leaves to the Senate as a whole the appropriateness of requiring that the Electoral Commissioner be notified of any gift made to a registered political party, state branch or political campaigner, in circumstances where failure to notify Commissioner may expose a person to a financial penalty.

1.62 The committee also notes that, as presently drafted, proposed section 305C may not reflect the intention of the bill as set out in the explanatory memorandum.

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[28] Schedule 1, item 4, proposed section 305C; item 5, proposed table item 3A. The committee draws senators’ attention to this provision pursuant to Senate Standing Order 24(1)(a)(i).

[29] Explanatory memorandum, p. 1. The disclosure threshold is prescribed by section 287 of the Electoral Act. It is subject to indexation under section 321A.

[30] The committee notes in this regard that 'gift' is defined broadly in the Electoral Act as 'any disposition of property made by a person to another person...without consideration...or with inadequate consideration, and includes the provision of a service'.