Labor scrambles to clinch political expenditure reform with Coalition deal (31 Jan 2025)
Article summary: The Australian government is set for a renewed clash with independent MPs, including Kate Chaney, as it attempts to finalise a political donation and funding reform deal with the Coalition. Special Minister of State Don Farrell is pushing for the legislation to pass within the next two weeks after narrowly missing an agreement with the opposition last year.
Discussions between the major parties have continued over the summer, but independents have strongly criticised the move, arguing it lacks transparency and could reduce electoral competition.
Kate Chaney, the independent MP for Curtin, has condemned the revival of the deal as "outrageous," warning that it could limit voter choice. She expressed concern that if the reforms are passed by the major parties alone, Australians should be "very alarmed" about their impact on democratic representation.
The bill, first introduced in November, proposed lowering the political donation disclosure threshold from $16,900 to $1,000, capping individual donations at $600,000 per election, and setting spending limits at $90 million for political parties and $800,000 per candidate.
Criticism has emerged from crossbenchers, as well as high-profile figures such as Clive Palmer and Climate 200 founder Simon Holmes à Court, who argue the changes would disproportionately benefit major parties. While the original deal fell apart due to Coalition concerns over the low disclosure threshold and potential harassment of small donors, the government remains determined to finalise the reforms, even considering an alternative agreement with crossbenchers.
However, independents claim they have not been properly consulted, despite their willingness to support less controversial measures, such as real-time donation transparency.
Ms Chaney and ACT Senator David Pocock have criticised the government for failing to respond to their recent letter offering a more balanced reform approach. Chaney specifically highlighted concerns over a provision that would cap independent candidates’ spending at $800,000 per electorate while allowing major parties to bypass these limits through party-wide advertising, effectively giving them a financial advantage. While she supports the principle of spending caps, she insists reforms should not unfairly hinder competition and calls for greater scrutiny through a public committee inquiry.
The government's push for electoral reform is shaping up to be a contentious battle, with independents arguing for a more transparent and equitable approach. Chaney and her crossbench colleagues are demanding greater consultation and a fairer electoral framework that does not favour major parties at the expense of political diversity.
