Read The Times Australia

Daily Bulletin

Federal parliament just weakened political donations laws while you weren't watching

  • Written by: Luke Beck, Associate Professor of Constitutional Law, Monash University

While Australians were distracted last week by Melbourne’s lockdown ending and the final days of the Queensland and United States elections, both major parties joined forces in federal parliament to weaken political donations laws.

This will make it easier for federal politicians to accept secret donations from property developers.

What’s the backstory?

In 2019, the High Court upheld Queensland laws banning property developers from making donations to political parties. The ban was introduced by the Palaszczuk government after a recommendation by the state’s Crime and Corruption Commission.

The Queensland ban applies to donations made to state and local political campaigns as well as general donations to political parties. A general donation might be used for federal, state or local political purposes or for the costs of running a party.

Read more: Fundraising questions have interrupted the Queensland LNP's election campaign. What does the law say?

At the same time, the High Court also struck down a 2018 federal law that said property developers could ignore state laws banning them from making general donations to political parties. (Yes — federal parliament really did pass a law overriding state anti-corruptionpowers!). The High Court said federal parliament has no power to regulate political donations that merely “might be” used for federal campaigns.

Property developers are also banned from making political donations in New South Wales and the ACT.

Allowing secret donations from dodgy donors

The legislation passed last week overrides state bans on property developer donations in two ways.

First, the legislation introduces a new provision to replace the 2018 federal law struck down by the High Court. This new provision allows property developers (and others banned from making donations under state laws) to ignore state laws banning them from making political donation where the donation is “for federal purposes”.

High Court, with Parliament House in background. The High Court struck down a federal law on donations in 2019. Lukas Coch/AAP

Second, the legislation allows property developers and political parties to ignore state laws requiring that donations be disclosed. In NSW and Queensland, donations of $1,000 or more need to be disclosed. Under the new federal law, only donations of $14,300 or more made by property developers “for federal purposes” need to be disclosed.

The explanation given for the new laws is that state laws shouldn’t apply to federal donations.

According to Finance Minister Mathias Cormann, the new laws “better clarify” the interaction between federal and state electoral laws.

The revised provisions ensure that federal law only applies exclusively to donations that are expressly for federal purposes, while fully respecting the application of state laws to amounts used for state purposes.

Labor’s Don Farrell, who is shadow Special Minister of State, told the Senate,

it’s not Labor’s intention in any way to weaken any of those provisions already in place in the states, but the Commonwealth parliament should be able to make laws with respect to Commonwealth elections, and those laws should not be overridden by the states.

Why this is bad for integrity

If you are a property developer wanting to curry favour with the NSW Labor Party or the Queensland Liberal National Party, you are now allowed to make a donation of $14,299 and no one will ever know. All you need to do is tell the party the money is “for federal purposes”.

While the law requires parties to keep money donated “for federal purposes” in separate bank accounts, a donation “for federal purposes” frees up money from other, general donations to be used for state purposes.

The Greens and independent MPs lined up to criticise the new law. As member for Indi, Helen Haines told parliament

this bill locks in the status quo when it comes to the current political donations culture at the federal level.

Meanwhile, Tasmanian lower house MP Andrew Wilkie described the law as allowing “brazen money laundering”. Senator Jacqui Lambie said the law was “a doozy” of a way “to hide big donor money from the voters” and “the latest in a long line of betrayals of the public’s trust”.

Federal integrity laws are too weak

Federal parliament had an opportunity to introduce better federal political transparency measures. They could have lowered the federal donations disclosure threshold so the public knows where federal politicians get their money. They could have introduced real-time reporting of donations so the public doesn’t have to wait until after each election to find out the identities of the biggest donors.

Labor has introduced bills on both these measures. Instead of dealing with those, both major parties took the time and effort to override state anti-corruption laws.

To add icing on top, the Morrison government has now released a draft bill for a federal integrity commission with proposed powers so much weaker than existing state anti-corruption commissions that a former judge called it a “feather duster”.

Australians deserve much better than this.

Read more: Explainer: what is the proposed Commonwealth Integrity Commission and how would it work?

Authors: Luke Beck, Associate Professor of Constitutional Law, Monash University

Read more https://theconversation.com/federal-parliament-just-weakened-political-donations-laws-while-you-werent-watching-149171

Business News

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The strategic rise of Bali as Australia’s next essential healthcare support hub

As Australian healthcare providers grapple with unprecedented operational bottlenecks, a new nearshore model is quietly transforming patient care delivery. Forward-thinking organisations,  including...

Daily Bulletin - avatar Daily Bulletin

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

Practical Ways Australian Workplaces Can Reduce Operating Costs

Reducing business costs doesn’t always mean cutting staff, shrinking services or making the workplace feel bare-bones. In many cases, the smarter savings are hiding in everyday operations: the light...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Why Every Workplace Should Take Emergency Preparedness Seriously

Emergency planning is one of those things many workplaces know they should think about, but it oft...

Why Clearer Communication Still Matters in a Digital-First Business

It’s never been easier for businesses to communicate, but that doesn’t mean they’re always communica...

What Happens After You Lodge a BYDA Enquiry? The Step Most Excavation Projects Miss

Every excavation project in Australia — from a backyard deck footing to a multi-storey commercial bu...

How to Choose the Right Dentist on the Gold Coast

Finding a dentist you trust is one of those decisions that quietly affects your health for years, ...

The Hidden Engineering Problem Inside Australia's Older Housing Stock

A significant share of Australian homes were built for a way of living that no longer exists. Houses...

DIY Rodent Control Vs Professional Help: When Is It Time To Call The Experts?

Rodents are one of the most frustrating pest problems for Australian property owners. Rats and mic...

Lighting Shop in Perth: How The Right Lighting Can Transform Your Home And Business

The right lighting can completely change the look, feel, and functionality of any space. Whether it ...

Traffic Light System Solutions For Safer And More Efficient Traffic Management

Modern cities and growing communities rely heavily on effective traffic management to ensure safety...

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...