Media Releases

Political Donations Reform Why is it Never the Right Time? [1st Apr, 2004]
by Senator Andrew Murray

The Australian Democrats welcome the passage of the Commonwealth Electoral Amendment (Representation in the House of Representatives) Bill 2004 that results in the Northern Territory being given its seat back, but are disappointed that vital Democrat amendments (please see appendix) to ban foreign political donations have been knocked back by Labor and the Coalition.

In their submission to the Joint Standing Committee on Electoral Matters, Labor expressed concerns on foreign donations to political parties, stating it may be a mechanism to hide the source of donations.

Democrats spokesperson on Electoral Matters, Senator Andrew Murray said, "The lack of Labor and Coalition support was not entirely unexpected. Labor said they supported the amendment in principle but that it was not the right time.
"When it comes to political donations reform, the Democrats' experience is that it is never quite the right time' for the major parties.

"Evidence has clearly shown that donations to political parties and candidates by foreign individuals and organisations can be used as a means of avoiding disclosure requirements.

"While the recipients of such donations must still disclose details of the donor if the donation exceeds the disclosure threshold, there is no way to ensure that the donor was the real source of the money.

"The Democrats have long called for donations from foreign entities to be banned outright. Donations from Australians living offshore should be permitted.

"Ensuring that there can be no foreign influence in domestic politics is a big issue in other countries. It should be a big issue here too, concluded Senator Murray.

Appendix

Commonwealth Electoral Amendment (Representation in the House of Representatives) Bill 2004

(Amendment moved by Senator Murray on behalf of the Australian Democrats in committee of the whole)

16 After section 306B
Insert:

306C Foreign donations, gifts etc. prohibited
(1) It is unlawful for a political party or a State branch of a political party or a person acting on behalf of a political party or a State branch of a political party to receive a gift, or disposition of property originating by whatever means from a foreign source.
(2) For the purposes of section 306C, 306D, 306E and 306F, foreign means of or pertaining to a country other than Australia.
[foreign donations prohibited]

306D Forfeiture of foreign donations, gifts etc.
(1) For the avoidance of doubt, where a foreign gift, or disposition of property is made to a political party or a State branch of a political party or a person acting on behalf of a political party or a State branch of a political party, the foreign gift is presumed to be contrary to section 306C and is to be dealt with in accordance with subsection (2).
Note: For strict liability, see section 6.1 of the Criminal Code.

(2) Where a person receives a foreign gift or disposition of property that, by virtue of this section, it is unlawful for the person to receive, an amount equal to the amount or value of the foreign gift or disposition of property is payable by that person to the Commonwealth and may be recovered by the Commonwealth as a debt due to the Commonwealth by action, in a court of competent jurisdiction, against:
(a) in the case of a foreign gift or disposition of property to or for the benefit of a political party or a State branch of a political party:
(i) if the party or branch, as the case may be is a body corporate--the party or branch, as the case may be; or
(ii) in any other case--the agent of the party or branch, as the case may be; or
(b) in any other case--the candidate or a member of the group or the agent of the candidate or of the group, as the case may be.
[foreign donations forfeit]

306E Donations by non-citizens resident in Australia lawful
A gift or disposition of property in Australia to a political party by a person who is a non-citizen resident in Australia is not a foreign donation for the purposes of section 306C or 306D.
Note: non-citizen is defined in section 5 of the Migration Act 1958 as a person who is not an Australian citizen.
[non-citizen residents may make donations]

306F Donations by Australians living abroad lawful
A gift or disposition of property by a person registered on the roll living overseas is not a foreign donation for the purposes of section 306C or 306D.
[overseas Australians may make donations]