Key Points
- South Australia's government will introduce legislation to ban electoral donations.
- Newly registered political parties and unendorsed candidates would be entitled to receive donations of up to $2,700.
- Premier Peter Malinauskas said the reforms may face legal challenge.
South Australian Premier Peter Malinauskas is set to introduce proposed reforms that would overhaul the funding and spending model for political parties, members of parliament and candidates in the state.
The legislation, known as the Electoral (Accountability and Integrity) Amendment Bill, would prohibit the giving and receiving of electoral donations and gifts to registered political parties, members of parliament and candidates.
Loans to registered political parties, MPs, groups, or candidates from anyone other than a financial institution would also be prohibited.
Newly registered political parties and unendorsed candidates would be entitled to receive donations of up to $2,700, and will also be subject to a spending cap.
The bill also proposes a restructure and mandatory application of the existing public funding model, including a reduction in the amount parties, MPs and candidates can spend.
The legislation currently states that anybody who knowingly participates in a scheme to circumvent the proposed laws could face a fine of up to $50,000 or 10 years in prison.
However, Malinauskas said the reforms may face a significant legal challenge.
"We know this is not easy," he said. "But we are determined to deliver them, with this bill to be introduced in the parliament in the near future. We want money out of politics."
Given that, under the proposed scheme, participants would no longer be able to fundraise, the bill proposes increasing public funding and a system of partial advance payments, so funding entitlements are available to parties and candidates before an election campaign.
The government said that from Thursday, members of the public can provide feedback on the draft bill over a four-week consultation period via the YourSAy website.
Special Minister of State Dan Cregan said the reforms were ambitious and sectional interest groups and lobbyists "will fight tooth and nail" to keep the current system.
"No political donor should be able to buy a favourable political outcome in our state by donating to parties or candidates," Cregan said.
"The hard truth is that public confidence in democracy is in decline. We need to take real steps to address that decline or risk falling into the extreme political dysfunction which is playing out in other jurisdictions."
