Key Takeaways
- The High Court of Australia is set to rule on the constitutionality of Victoria’s donation laws, which currently favor the three biggest political parties.
- The laws, introduced in 2018, limit donations to candidates and parties to under $5,000 every four years, but exempt the Labor, Liberal, and National parties from this cap.
- The exemption allows these parties to access tens of millions of dollars in funds built up over decades, giving them a significant financial advantage over other parties and independents.
- The Victorian government is seeking to change the laws to introduce caps on funds transferred from nominated entities to parties and independents, and to allow other parties and independents to set up nominated entities.
- The government’s proposed reforms also include changes to ballot papers and early voting periods, but do not commit to reforming the upper house voting system.
Introduction to Victoria’s Donation Laws
The state of Victoria in Australia has been embroiled in a controversy over its donation laws, which have been criticized for favoring the three biggest political parties. In 2018, the Andrews government introduced donation caps that limit payments to candidates and parties to just under $5,000 every four years. However, the laws contained a special exemption for the Labor, Liberal, and National parties, which were able to create nominated entities to access funds built up over decades. This exemption has been argued to be unconstitutional, as it gives these parties a significant financial advantage over other parties and independents.
The High Court Challenge
The West Party and teal independents have banded together to challenge Victoria’s donation laws in the High Court, arguing that they are discriminatory and favor the major parties. The government has conceded that the nominated entities are "discriminatory" and has proposed changes to the laws to introduce caps on funds transferred from nominated entities to parties and independents. The proposed reforms would allow other parties and independents to set up nominated entities, and would cap transfers at $500,000 for parties and $50,000 over an election period for independent candidates. This move is seen as an attempt to level the playing field and ensure that Victorian elections are fair and democratic.
Proposed Reforms
The Victorian government’s proposed reforms have been welcomed by some as a step in the right direction, but others have criticized them for not going far enough. Premier Jacinta Allan has stated that the reforms are designed to ensure that Victorians can be confident in their electoral processes, and that fair elections are the bedrock of democracy. The reforms would also change ballots to ensure that if a candidate is dis-endorsed by a party, it would be reflected on the ballot paper, even if it occurred after the close of nominations. Additionally, the reforms would cement a default early voting period of 10 days. However, the government has not committed to reforming the upper house voting system, despite multiple reports recommending that Victoria abolish group-voting tickets.
Upper House Reform
The issue of upper house reform has been a contentious one in Victoria, with many experts and parliamentary reports calling for change. Group voting tickets allow voters to number one box above the line, with the parties then determining how preferences flow. This system has been criticized for leading to some minor parties being elected with a tiny portion of the primary vote. Despite the criticism, the Victorian government remains uncommitted to reform, and a parliamentary inquiry into upper house voting is due to be tabled in parliament this week. The lack of commitment to reform has been seen as a disappointment by many, who argue that the current system is undemocratic and favors the major parties.
Conclusion
The controversy over Victoria’s donation laws has highlighted the need for electoral reform in the state. The High Court challenge has brought attention to the issue, and the government’s proposed reforms are a step in the right direction. However, the lack of commitment to upper house reform is a concern, and it remains to be seen whether the government will take further action to address the issue. Ultimately, the goal of electoral reform should be to ensure that Victorian elections are fair, democratic, and representative of the people. By introducing caps on funds transferred from nominated entities and allowing other parties and independents to set up nominated entities, the government can help to level the playing field and ensure that all parties and candidates have an equal chance of success.
