Political donations laws hang in the balance as Prime Minister weighs Dutton deal (2 Feb 2025)
Article summary: The fate of the Albanese government’s proposed political donations reforms remains uncertain as Parliament enters what could be its final sitting fortnight before the next election. Independent ACT Senator David Pocock and Curtin MP Kate Chaney are urging the government to separate donations reforms from its broader electoral bill, arguing that measures such as real-time donation disclosures and a lower disclosure threshold from $16,900 to $1,000 should be passed immediately. Their concerns stem from proposed donation caps, which they fear will disadvantage independent and minor party candidates while benefiting major parties.
Opposition Leader Peter Dutton confirmed that the Coalition is in ongoing discussions with the government over the bill but has not reached an agreement. A government source indicated it is unclear whether a deal will be struck before the Senate debates the legislation on Thursday. Parliament is scheduled to sit for two weeks, with a possible additional sitting in March if an election has not been called.
In a letter sent to Prime Minister Anthony Albanese and Special Minister of State Don Farrell, Senator Pocock and Ms Chaney criticised the lack of engagement from the government since Albanese promised consultation in November. They wrote, “Since the Prime Minister made this undertaking on 29 November 2024, there has been no constructive engagement on electoral reform despite crossbench approaches.”
The primary sticking point is the proposed donations cap, which would limit donations to lower house candidates at $800,000, with a $20,000 cap per individual donor. Senate candidates would have a cap of $200,000 multiplied by the number of electorates in their state or territory, equating to $600,000 for the ACT. While the government argues these reforms will “keep big money out of politics,” crossbenchers warn they could make it nearly impossible for independents and minor parties to compete in major party-held seats. Senator Pocock, for instance, raised $1.8 million in his successful 2022 campaign, nearly half from Climate 200.
Greens Senator Sarah Hanson-Young also voiced frustration, stating that the government had not engaged with her party on the issue since last year. She accused Labor of working on a “cosy deal” with the Coalition rather than collaborating across Parliament. “Feathering their own nests, rather than delivering reform that is in the interests of the community,” she said, warning voters to be sceptical of any bipartisan agreement between the major parties.
Meanwhile, Prime Minister Albanese is prioritising cost-of-living relief in this sitting fortnight. The government plans to introduce bills for three free days of childcare, permanent free TAFE, and a response to the robodebt royal commission. However, the uncertain fate of political donations reform remains a critical issue as negotiations continue.
Related article: Rush to cap political donations curious (18 Nov 2024)
