Gary Nairn (Eden-Monaro, Liberal Party, Special Minister of State) Share this | Hansard source

by leave—I present a supplementary explanatory memorandum to the bill, and I move government amendments (1) to (17) together:

(1)    Schedule 1, item 84, page 22 (lines 29 and 30), omit subparagraph 314AEB(1)(a)(i), substitute:

                   (i)    the public expression of views on a political party, a candidate in an election or a member of the House of Representatives or the Senate by any means;

(2)    Schedule 1, item 84, page 23 (lines 8 and 9), omit subparagraph 314AEB(1)(a)(iv), substitute:

                 (iv)    the broadcast of political matter in relation to which particulars are required to be announced under subclause 4(2) of Schedule 2 to the Broadcasting Services Act 1992;

(3)    Schedule 1, item 84, page 23 (line 18), omit subparagraph 314AEB(1)(c)(iii), substitute:

                 (iii)    the Commonwealth (including a Department of the Commonwealth, an Executive Agency or a Statutory Agency (within the meaning of the Public Service Act 1999)); or

               (iiia)    a member of the House of Representatives or the Senate; or

(4)    Schedule 1, item 84, page 24 (lines 5 and 6), omit “$10,000; and”, substitute “$10,000.”.

(5)    Schedule 1, item 84, page 24 (lines 7 to 12), omit paragraph 314AEC(1)(d).

(6)    Schedule 3, item 5, page 47 (lines 7 and 8), omit “the name of a new registered officer for a political party for the purposes of paragraph 134(1)(g)”, substitute “a different name or address for the registered officer of a political party for the purposes of paragraph 134(1)(g) or subsection 134(1A)”.

(7)    Schedule 3, item 6, page 47 (line 15), at the end of the item, add “However, that Register may be changed to substitute a different name or address for the registered officer of a political party for the purposes of paragraph 134(1)(g) or subsection 134(1A) of the Commonwealth Electoral Act 1918.”.

(8)    Schedule 4, item 1, page 48 (lines 12 and 13), omit “contributions to political parties and gifts to”, substitute “contributions and gifts to political parties,”.

(9)    Schedule 4, item 1, page 49 (line 1), after “a contribution”, insert “or gift”.

(10)  Schedule 4, item 1, page 49 (line 4), omit “a gift”, substitute “a contribution or gift”.

(11)  Schedule 4, item 1, page 49 (line 7), omit “a gift”, substitute “a contribution or gift”.

(12)  Schedule 4, item 1, page 49 (line 19), omit “A gift”, substitute “A contribution or gift”.

(13)  Schedule 4, item 1, page 50 (line 8), after “contributions”, insert “and gifts”.

(14)  Schedule 4, item 1, page 50 (line 10), omit “gifts”, substitute “contributions and gifts”.

(15)  Schedule 4, item 2, page 52 (lines 5 and 6), omit “to a political party, a gift to an independent candidate or member or”, substitute “or gift to a political party, independent candidate or member, or”.

(16)  Schedule 4, item 3, page 52 (lines 11 and 12), omit “to political parties and gifts to”, substitute “and gifts to political parties,”.

(17)  Schedule 4, item 5, page 52 (lines 17 and 18), omit “to political parties and gifts to”, substitute “and gifts to political parties,”.

As honourable members will be aware, the Electoral and Referendum Amendment (Electoral Integrity and Other Measures) Bill 2005 contains measures relating to third-party disclosure of political expenditure, registration of political parties and tax deductibility for donations to political parties and Independent candidates and members. The amendments I have moved relate to these three measures. Turning to amendments (1) to (3), item 84 of schedule 1 to the bill currently provides for third parties to lodge annual disclosure returns if they incurred expenditure for a political purpose or received gifts over the disclosure threshold which enabled them to incur expenditure for a political purpose during a financial year.

These provisions give effect to the recommendation of the Joint Standing Committee on Electoral Matters in its report on the 2004 federal election that third parties should be required to meet the same financial reporting requirements as political parties, associated entities and donors. Following introduction of the legislation, I received representations from the non-profit sector, including World Vision Australia, the Australian Council for International Development and the National Roundtable of Nonprofit Organisations about the possible impact of the proposed third-party disclosure obligations on the work of this sector.

The issue was also raised with the Senate Finance and Public Administration Legislation Committee at its inquiry into the bill on 7 March 2006. The government has listened to their concerns and has taken action to remove the unintended administrative burden that would otherwise be faced by non-profit and similar organisations in lodging annual returns as a result of the application of the broad definition of ‘electoral matter’ in section 4 of the Commonwealth Electoral Act 1918. The amendments I present were developed in consultation with the not-for-profit sector and the response has been very positive. In an email to my office on 23 March 2006, Paul O’Callaghan of the National Roundtable of Nonprofit Organisations wrote: ‘The minister’s proposal will be welcomed by the non-profit sector as demonstrating a serious effort to address our organisational concerns.’ I would like to thank Mr O’Callaghan and his colleagues for their constructive contribution.

As a result of the amendments, third parties will be required to lodge an annual return on expenditure incurred for the purpose of expressing public views by any means on specified participants in the political process—namely, a political party, a candidate in an election or a member of the House of Representatives or the Senate. The amendments will also ensure that, if a third party is required to authorise an advertisement pursuant to section 2 of the Broadcasting Services Act 1992, they will be required to disclose expenditure in accordance with the new reporting requirements set out in proposed section 314AEB of the Commonwealth Electoral Act. This amendment captures disclosure of political content communicated through broadcast media. Third parties will also be required to report on expenditure incurred for the printing and publication of electoral advertisements, notices and other material that falls within the categories covered by section 328 and proposed section 328A of the Commonwealth Electoral Act.

The amendments also provide that third-party reporting requirements will not apply to Commonwealth departments and agencies or to members of the House of Representatives or the Senate. As result of these amendments, the third-party reporting requirements will, however, apply to associated entities, as these entities can be actively involved in the political process. Associated entities will continue to be required to provide information under the existing requirements of section 314AEA, ‘Annual returns by associated entities’. The threshold for third-party reporting will be the same as that proposed for other disclosure thresholds—that is, $10,000. The government considers that these amendments will ensure transparency in the reporting of political expenditure by third parties.

With amendments (4) to (5), the government also proposes to make consequential amendments as a result of the amendments to third-party reporting which I have just outlined. This includes amending new section 314AEC to remove the categories to which the annual reporting requirement applies for gifts received for political expenditure—namely, deleting paragraph 314AEC(1)(d), which is now redundant.

I will turn to amendments (6) to (7), which relate to party registration. Item 5 of schedule 3 to the bill provides for the register of political parties to be frozen for six months after the bill receives royal assent. No changes may be made to the register during this period apart from the name of the registered officer for a political party. Amendment (6) will provide for the address of the registered officer to be changed in addition to the person’s name. This will ensure that, when registered officers change, all notification that is required to be sent to the registered officer under the Commonwealth Electoral Act will be sent to the officer’s current address.

Item 6 of schedule 3 to the bill relates to the register of political parties that would be in force if an election were called during the re-registration process. The bill as it currently stands does not allow for any changes to be made to the register if item 6 were in force. Amendment (7) provides that the name and address of the registered officer of a political party may be changed on the register that is in force under item 6. The provision would operate only if an election is held within 12 months from the commencement of the deregistration process. This amendment will ensure that registered officers would be able to sign a nomination for candidature in a federal election.

Turning to amendments (8) to (17): schedule 4 of the bill as it currently stands provides for tax deductibility for contributions to political parties, but only for gifts to Independent candidates and members. The proposed amendments to the Income Tax Assessment Act 1997 will ensure parity of tax treatment by allowing tax deductibility for either gifts and/or contributions to both political parties and Independent candidates and members. I am sure the Independent members in the House will be supporting that particular amendment and I commend the amendments to the House.

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