‘Stitch up’: Steggall, minister in heated clash over donations
Independent MP Zali Steggall has had a heated public clash with a minister over controversial electoral reforms that cap election spending and political donations.
Labor and the Coalition have struck a deal to cap campaign expenditures at $800,000 per electorate. This deal also allows registered political parties access to a $90 million war chest for general advertising, which independents say strengthens the field.
“This election, 2025, is ultimately going to be probably, if we can’t repeal this legislation, the last competitive election where there will be a capacity for independents to come and challenge incumbents in seats,” Steggall said in Canberra on Thursday.
“If this legislation is not amended, it will become incredibly difficult.”
She confronted Special Minister of State Don Farrell, who spearheaded the legislation and negotiations with the Coalition, in Parliament House on Thursday. He denied the playing field had been stacked.
“There are no secret loopholes in this legislation,” he said.
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“The whole process pushes downward pressure on the cost of elections so ordinary Australians have a chance to be elected, not those candidates that are supported by the billionaires and the millionaires.”
Under the deal announced on Wednesday, individuals are limited to donations of no more than $50,000 to a party’s branch in each calendar year. This means up to $450,000 if a person donates to a branch in each state and territory, plus the national arm.
Donors hedging their bets and giving cash to multiple parties will be capped at $1.6 million nationwide, although this is limited to $250,000 in any state or territory.
Aggregated donations over $5000 will have to be disclosed – down from the 2023/24 threshold of $16,900. Disclosures must also be made within weeks, a sharp reduction in the current annual requirements.
This will ramp up during election campaigns, shortening to within days.
The amount candidates can spend will be capped at $800,000 per electorate and $200,000 per electorate in a given state and territory for senators.
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This limits campaign spending to $600,000 for the ACT and $9.2 million for NSW.
Political parties can access a separate $90 million limit for broad advertising without a candidate’s name that can be used nationwide.
“This is not just about capping donations and taking big money out of politics. I know, the minister spins a good story on that, right?” Steggal said.
“It’s easy to point the finger, but the reality for many, many years, is the major parties have outspent every other candidate by multiples to one.”
Independents are up in arms about major political parties having access to a larger war chest from which they can allocate funds away from safe seats and pump negative or broad party ads into tight contests.
They’ve branded the reforms “a major party stitch-up” after debate was limited to 2½ hours and a vote forced in the Senate on Wednesday after Labor and the Coalition sealed a deal on the legislation.
Independent senator David Pocock accused the major parties of putting their self-interests first and locking out competition, adding that provisions that increase public funding for votes disproportionately benefit major parties.
“It could be $800,000 backing the Liberal, Labor candidate by name and then it’s $2 million backing Liberals or Labor – just don’t mention their name,” he said during the Senate debate.
“That’s not a level playing field.”
Crossbenchers including Katy Chaney, Helen Haines and Steggall have flagged fairer reforms being part of any minority government negotiations if there’s a hung parliament after the next federal election.
The bill is set to pass the lower house on Thursday, although the major changes won’t come into effect until July 1, 2026.
– with AAP
