What’s the Law Around Political Donations in Australia?
In Australia, the intersection of money and politics has long been a topic of public debate. Political donations—while essential for funding campaigns and party operations—raise serious questions about transparency, influence, and fairness. Recent reforms and inquiries have brought fresh scrutiny to the way donations are disclosed and regulated. Understanding the law around political donations is vital for ensuring the integrity of Australia’s democratic process.
What counts as a political donation?
A political donation refers to any gift or contribution—financial or otherwise—made to a political party, candidate, or associated entity. This can include direct cash donations, event sponsorships, or even in-kind support such as office space or advertising services. Under Australian law, both individuals and organisations can make political donations, but strict rules govern their amount and disclosure.
The key laws governing donations
The primary legislation regulating political donations in Australia is the Commonwealth Electoral Act 1918, overseen by the Australian Electoral Commission (AEC). This Act sets out the framework for disclosure, reporting, and restrictions on donations made to federal political entities.
Each state and territory has its own additional laws governing political donations, including caps on donation amounts, bans on certain donors (like property developers in NSW), and real-time disclosure requirements. For instance, New South Wales and Queensland have some of the strictest donation caps in the country, while federal law has lagged behind in comparison.
Disclosure thresholds and transparency
Transparency is at the core of donation regulation. As of 2025, the federal disclosure threshold is set at around $16,300. Donations above this amount must be declared to the AEC, which then publishes the information on its website. However, critics argue that this threshold remains too high and enables large sums to be donated without timely or full disclosure.
At the state level, thresholds are often significantly lower, with jurisdictions like NSW requiring disclosure for donations exceeding $1,000. This difference highlights the inconsistency between state and federal regimes—a concern frequently raised by transparency advocates.
Who can donate—and who can’t?
While most Australian citizens and organisations can make political donations, there are restrictions on foreign donors. The Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018 prohibits foreign entities from making donations intended to influence elections. The law aims to protect Australia’s political system from external interference and maintain domestic accountability.
Additionally, corporations involved in high-risk sectors—like property development, gambling, and tobacco—face bans or restrictions in certain states due to concerns about undue influence.
Real-time reporting and reform debates
A major criticism of Australia’s current donation system is the delay in disclosure. Federal donation data is typically made public months after an election or financial year, which undermines real-time transparency. Advocacy groups and integrity bodies have called for immediate or near-real-time reporting, similar to the systems already operating in Queensland and NSW.
The Joint Standing Committee on Electoral Matters continues to review recommendations to modernise political donation laws. Proposals include lowering the federal disclosure threshold, introducing donation caps, and enhancing penalties for breaches. The broader aim is to make the system more open, fair, and resistant to corruption.
The public’s right to know
Transparency in political donations is about more than numbers—it’s about public trust. Voters have a right to know who is funding political parties and candidates, and whether those donors stand to gain from specific policies. With major elections on the horizon, debates around donation reform are intensifying, particularly in light of growing public concern over lobbying and corporate influence.
The future of political donation law
Looking ahead, Australia’s approach to political donations will likely continue evolving. The introduction of federal anti-corruption frameworks, including the National Anti-Corruption Commission (NACC), signals a broader move toward accountability in public life. Future reforms could see tougher limits, increased scrutiny, and mandatory real-time disclosures—all aimed at strengthening democracy and public confidence.
Political donations play a vital role in supporting democracy, but without robust regulation, they risk undermining it. Understanding the current laws—and advocating for stronger transparency—ensures that political influence remains in the hands of voters, not wealthy donors.
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