Rebekha Sharkie (Mayo, Centre Alliance) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

I have often raised concerns in this place regarding the weakness of Australia's federal donation laws.

Last year, the OECD reported that trust in government in Australia is at an all-time low, which we know makes it harder for governments to implement policy.

Under existing regulations, Australians had to wait nine months after they'd voted in the last federal election to be able to 'follow the money' from donors to candidates, due to our lax political donation reporting requirements.

This meant, for example, that voters did not learn before the election that the Minister for Communications, with responsibility for online gambling, received cash donations of around $19,000 while she held the shadow portfolio, shortly before the 2022 federal election.

Australians are required to vote in elections without having up-to-date information regarding the candidates' backers.

This compares with most Australian jurisdictions having introduced real-time political donation reporting within seven days of receipt of large donations.

The Joint Standing Committee on Electoral Matters inquiry into the 2022 federal electioninterim report indicates that most submissions are supportive of a real-time disclosure framework.

In its submission, the Australia Institute called for increasing transparency around the funding of parties and candidates, so that Australians can make more informed choices.

And the Australian Electoral Commission acknowledged the time lag of up to 18 months.

We would all remember when the former member for Wentworth made a very sizeable donation to his political party just before the election in 2016, and because that donation was made, I think, a day or two into the new financial year, none of us were aware of how much that was not until the following February but the February after. That is really lax, and we need to do better.

The bill will require candidates and political parties to advise the Electoral Commission within five business days of receipt of any gifts which exceed the disclosure threshold for the financial year. This will also apply to campaigners if any part of the gift or gifts is used for certain electoral purposes by the campaigner.

I'm sure you would remember in 2019 I introduced these bills, way back then, and they went to a committee. It was a then government committee, who are now in opposition, and they did not support this. However, I was really pleased that there was a dissenting report. To quote from the dissenting report, it said:

It was Labor who, under Bob Hawke, introduced the first donations disclosure scheme in 1983, with a disclosure threshold of $1,000. The Liberals and Nationals, under John Howard, changed the rules in 2006 to hide who was giving them money raising the threshold to $10,000 and linking it to CPI.

That indexation has got us now to $16,300. I was really pleased that Labor when in opposition provided a dissenting report, effectively supporting the bills, so let's make this a reality. Let's have a system where we know exactly who's giving what.

If gifts totalling more than the disclosure threshold are made by a single person to the same political party, branch or campaigner during a financial year, an annual return must also be provided to the Electoral Commission.

While the Special Minister of State when he was in his shadow role supported this, I'm yet to see in this parliament a desire for change. So I would really urge the government: let's have real-time disclosure of political donations. Let's not wait until the following February or, if it's just brand new into the new financial year, even beyond that. We need to improve this because this is about trust in our democracy.

I had a lovely intern here a little while ago. Her name is Isha Singhal, and she found in her 2023 Australian National Internships Program—she wrote me a paper, and it is called Global comparison of political finance regulations and recommendations for Australia—that:

It is vital that Australia prioritise political finance reform to ensure the continuance of a stable democracy in Australia that is truly representative of the people's needs.

While there are many other measures which Australia could adopt, including capping or increasing scrutiny of large donations, increasing public funding and dealing with emerging challenges as well as embracing opportunities arising from advances in digital technology, the bills before the House today provide sound first steps.

This is easy. We all now have systems in our offices. If Independent members of parliament can do this, I think anyone can do this, particularly the big machines. I therefore call on all members in this place to support this bill, and I would like to give my remaining time to the member for Indi, who is seconding my bill.

Milton Dick (Speaker) Share this | Link to this | Hansard source

Is the motion seconded?

Helen Haines (Indi, Independent) Share this | Link to this | Hansard source

I second the motion. I'm pleased to support the Commonwealth Electoral Amendment (Real Time Disclosure of Political Donations) Bill 2023 moved by the member for Mayo. I back her in completely on this. Political, parliamentary and public service integrity is fundamental to the strength of our Australian democracy. The transparency of election campaign financing is key to its vitality and integrity. The loss of political integrity across Australia concerns Australians—just read the letters to the editor—and the data shows it too, with diminishing trust over a period of time. That's fundamentally bad for our democracy. If we don't have trust in our governments and key political organisations, how can we bring Australians along for the bold reforms that are needed into future?

The current federal donation disclosure threshold is $15,200. Donations over that threshold are not disclosed until well after an election. Voters should have the opportunity to understand, before they vote, who is funding campaigns. Greater transparency of political donations will contribute to reducing the influence of private interests on politics and improving public trust. If the disclosure threshold were reduced to $1,000 and reported in real time, it would be much more difficult to conceal the identities of political donors. The federal donation disclosure system allows millions of dollars in political donations to go undisclosed, due to the large number of donations just under the current high threshold. Transparency measures also must be in place to close current loopholes for avoiding disclosure. There are a range of measures that are undertaken to avoid disclosure, things like large amounts of undisclosed money put forward into large party coffers as a result of the practice of hosting high priced ticketed events; charging, for example, $15,000 for a dinner with the Prime Minister; and claiming that that charge is fair market value. That's a pretty good dinner, I would say, and it certainly comes under what I would consider a political donation.

Across Australia, we see the political campaign finance laws diverge between jurisdictions. The parliaments of New South Wales, Victoria and Queensland have set a disclosure threshold on political donations at $1,000. New South Wales, Victoria, Queensland and South Australia require near real time disclosure of donations, yet the Commonwealth requires disclosure just once a year and then many months after the reporting period has ended. In addition to that, the NSW Electoral Commission actively pursues breaches, yet the Australian Electoral Commission rarely employs its coercive powers, as the Senate finance and public administration committee heard way back in 2017.

The crossbench has been calling for reform for years—multiple bills introduced. I thank the member for Mayo for continuing this strong push. Only a few weeks ago, the member for Curtin introduced a strong bill, laying out considerable, sensible reforms for our federal electoral laws that would go a long way to restoring public trust and levelling the playing field. Right now, the Joint Standing Committee on Electoral Matters is considering reforms. I urge the government to do what is right: lower the disclosure limit to $1,000; make the disclosure real time; and get the dark money out of politics. It's not that hard. I've been doing it for a long time. Again, as the member for Mayo would say, if an Independent member of parliament can do this, then surely everyone can do this. I thank the member for her bill, and I'm proud to second it today.

Milton Dick (Speaker) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned and the resumption of the debate will be made an order of the day for the next sitting.