<?xml version="1.0" encoding="ISO-8859-1"?> <docID>334204</docID> <postdate>2024-11-28 16:02:04</postdate> <headline>Impasse over political donation limits torpedoes deal</headline> <body><p><img class="size-full wp-image-265525" src="https://citynews.com.au/wp-content/uploads/2022/08/AEC.jpeg" alt="" width="1000" height="665" /></p> <caption>The government hopes to impose caps on political donations before the next federal election. Photo: AEC.</caption> <p class="wire-column__preview__author"><span class="kicker-line">By <b>Dominic Giannini</b> in Canberra</span></p> <p><strong>Negotiations over how much Australians can donate to political candidates have forced Labor to shelve reforms aimed at getting big money out of politics.</strong></p> <p>The Albanese government had proposed an annual $20,000 individual donation limit to a party's state or federal branch and lowering the threshold at which donations are publicly declared to $1000.</p> <p>While a deal with the coalition was close, negotiations broke down on Wednesday night, scuppering any hope of the laws passing before Christmas.</p> <p>It's understood the coalition is pushing to increase the individual donation limit to $40,000 and the reporting threshold to $5000.</p> <p>Labor wants to ease how the caps affect the war chests that advocacy and peak bodies build from member fees.</p> <p>But the Liberals are holding out due to changes making it easier for trade union councils and civil society peak bodies to run campaigns.</p> <p>Special Minister of State Don Farrell, who is spearheading the federal government's electoral legislation, was hoping to have the laws ticked off on Thursday with bipartisan support.</p> <p>Negotiations will continue over the summer until parliament resumes in February.</p> <p>Finance Minister Katy Gallagher is pushing to have the reforms passed by the federal election, which is due by late May.</p> <p>The changes will not come into effect until mid-2026, but Labor argues they need to be passed as soon as possible to give parties and the Australian Electoral Commission time to adapt to the laws.</p> <p>A $90 million federal spending cap for political parties and $11 million limit for special interest groups such as unions and fundraising group Climate 200 have been opposed by those arguing donations should not be capped as it goes against free-speech principles.</p> <p>An $800,000 candidate spending cap for each electorate will also be imposed on candidates under the proposed changes.</p> <p>Billionaire Clive Palmer has flagged a High Court challenge.</p> <p>Mr Palmer's $120 million spend at the 2022 election to have a single senator elected was a catalyst for the reforms.</p> <p>Millionaires spending an unchecked amount of money at elections was "subverting our democratic process", Opposition Leader Peter Dutton said.</p> <p>But the bill in its current form was not something the opposition could support, Mr Dutton said on Thursday, without elaborating on which aspects.</p> <p>Crossbenchers have argued that how the changes are structured and a proposed increase in public money that goes to parties per vote stacks the odds against them.</p> <p>An overarching federal war chest parties can use to target key seats with broad advertising not captured in the $800,000 cap could also handicap independents and grassroots movements, they argue.</p> <div class="wire-column__preview__text" id="preview-body"> <p>Independent MP Kylea Tink called for the government to split their reforms and pass broadly supportive sections including lowering the donation disclosure threshold and having real-time reporting requirements.</p> <p>Labor has ruled out splitting the package.</p> <p>Parties being able to move cash around to sandbag at-risk seats on top of candidate expenditure while independents and minor parties only had $800,000 was "a crass attempt" to lock out competition, she said.</p> </div> </body>