South Australia has achieved a significant milestone in political reform by passing pioneering legislation that bans all political donations. The SA Government successfully navigated the Electoral (Accountability and Integrity) Amendment Bill 2024 through State Parliament with the support of the Liberal Party, Greens, and other crossbench members.
Premier Peter Malinauskas described this achievement as a pivotal moment for South Australia, renowned for its historical contributions to democratic reforms. “South Australia has a rich tradition of leading the world in democratic reforms, and this is yet a significant day.
“This reform is not in my Government’s immediate political interests. But it is the right thing to do.
“South Australians rightly expect that their politicians should be focusing on the issues that matter to them, not spending their days chasing dollars.
“This legislation has been carefully crafted on the best advice of experts and in close consultation with democracy groups to ensure we have a system which is fair and workable.”
This far-reaching legislation inhibits any form of electoral donations and gifts to registered political parties, members of Parliament, and candidates. It introduces stringent penalties for any attempts to bypass this new regulation. Parties, candidates, and third parties, which comprise businesses, unions, and think tanks, will now face mandatory expenditure caps. Notably, the reform also adjusts the existing public funding model based on election votes and makes allowances for new political entrants, ensuring they are not at a disadvantage; these newcomers are permitted to receive donations up to $5,000 and will also face a spending cap.
Dan Cregan, Special Minister of State, highlighted the broader implications of eliminating political donations. “This reform sets out to end the pervasive impact of political donations in our electoral system and reverse an emerging trust deficit seen worldwide,” Cregan said.
“Decisions taken by members of parliament must always be made in the public interest and a ban will prevent donors from enjoying greater influence or access.
“It recognises the constitutional guarantee of freedom of political communication and is calibrated to avoid placing an unconstitutional burden on that freedom.”
The legislation, which is set to take effect on 1 July next year, was devised following extensive consultations with constitutional experts, the Solicitor General, the Electoral Commission, and various democracy groups. Although it is a strong step toward reforming political finance, it is acknowledged that it may face challenges, including potential scrutiny from the High Court.
Additional measures were also passed this week, which address evolving electoral challenges. These include bans on unsolicited robocalls and the regulation of artificially generated electoral content, known as ‘deepfakes’. Other amendments will see pre-poll votes being counted on polling day, the prohibition of federal electoral corflute displays at polling places, and the provision of telephone-assisted voting for electors with sight and motor impairments.
The legislation mandates a review within 18 months of the next poll to assess the effectiveness and impact of this significant overhaul of the electoral finance landscape. As South Australia prepares for the March 2026 State Election under these new regulations, this initiative marks a decisive step toward enhancing the transparency and integrity of its political system.
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