Persons and entities that make political donations or incur electoral expenditure of $1,000 or more in NSW have obligations under the Election Funding and Disclosures Act 1981 (the Act).

The Funding and Disclosure Guide for Political Donors is now available. The guide provides political donors with information about their obligations under the Act as well as information about how to disclose political donations and electoral expenditure.

Who are political donors?

Political donors are persons or entities that make a political donation to a political party, local government councillor, Member of Parliament, candidate or group of candidates in NSW.

Political donors include persons and entities that incur expenditure for the purpose of promoting or opposing a NSW political party, candidate or group of candidates in NSW or for the purpose of influencing the vote at a state or local government election in NSW. This expenditure is known as electoral expenditure.

What is a political donation?

A political donation is:

• a gift (monetary or otherwise) made to or for the benefit of a political party, local government councillor, member of Parliament, candidate or group of candidates in NSW,
  
• an amount paid by a person or entity as a contribution, entry fee or other payment which entitles them or any other person to participate in, or obtain benefit from a fund raising venture or function.

Political donations include:

• a donation of money,
  
• the provision of a service at no charge or at a discounted charge,
  
• the giving of a gift,
  
• the purchase of a ticket or other item at a fund raising event or function.
  

What is electoral expenditure?

Electoral expenditure is any expenditure for the purpose of promoting or opposing a NSW political party, a candidate or group of candidates in NSW or for the purpose of influencing the vote at a state or local government election in NSW. Electoral expenditure includes but is not limited to:

• advertisements using radio, television, the Internet, cinemas, newspapers, billboards, posters, brochures, how-to-vote cards and any other printed election material,
  
• holding election rallies,
  
• distributing election material,
  
• travel and accommodation expenditure for a candidate who is contesting an election,
  
• research associated with election campaigns,
  
• stationery, telephones, messages, postage and electronic transmissions,
  
• employing staff engaged in election campaigns,
  

What are reportable political donations?

Reportable political donations are donations of $1,000 or more made by a political donor to a NSW political party, local government councillor, Member of Parliament, candidate or a group of candidates.

Political donations of less than $1,000 made by a person or entity to the same political party, local government councillor, elected member, candidate or a group of candidates during the same financial year are to be treated as reportable political donations if the total value of those donations is $1,000 or more.

Reportable political donations must be disclosed to the Election Funding Authority on a Disclosure of Political Donations and Electoral Expenditure by a Political Donor form.

If you make a reportable political donation to a political party, councillor, elected member, candidate or group of candidates you should be given a receipt.

The receipt is required to show the date your donation was made, your full name and residential address (if you are a person) or registered official address (if you are an entity), the value of your donation, your ABN (if you are an entity) and the purpose of the payment or gift.

Political donors are required to disclose reportable political donations and electoral expenditure to the Election Funding Authority every six months.

Prohibition on indirect campaign contributions

Political donors are not permitted to make indirect campaign contributions to a NSW political party, councillor, Member of Parliament, candidate or group of candidates unless the value of the contribution is less than $1,000.

Indirect campaign contributions are where a political donor provides a gift or service at no charge or at a discounted charge to a NSW political party, councillor, Member of Parliament, candidate or group of candidates.

For example, if a printer provides printing services valued at $2,000 to a party and charges the party $500 then the printer has made an indirect campaign contribution of $1,500 (the contribution is the difference between the value of the service and the amount charged to the party). This contribution is unlawful because it is valued at $1,000 or more.

Indirect campaign contributions include:

• the provision of office accommodation, vehicles, computers or other equipment,
  
• a political donor making a full or part payment for expenditure incurred by a political party, councillor, Member of Parliament, candidate or group of candidates.
  
• a political donor waiving all or part if a payment to the donor by a political party, councillor, Member of Parliament, candidate or group of candidates.

Indirect campaign contributions are not prohibited in the following circumstances:

• the provision of volunteer labour, and
  
• anything provided by a person or entity whose value is not $1,000 or more (unless the total value of all things provided in the same financial year is $1,000 or more).
  

Prohibition on donations from entities without an ABN

Political donors are not permitted to make reportable political donations unless the political donor is an individual or is an entity that has an Australian Business Number (ABN).

Political donors are not allowed to accept reportable political donations from another person unless the person is an individual or an entity that has an Australian Business Number (ABN).

Prohibition on receiving donations from an unknown source

Political donors are not permitted to accept reportable political donations from another person or entity unless the name and address of the person or entity is known or provided to the political donor.

Political parties, councillors, members of Parliament, candidates and groups of candidates are not permitted to accept reportable political donations from a political donor unless the name and address of the donor is known or provided to them.

How to disclose reportable political donations and electoral expenditure?

Political donors are required to disclose to the Election Funding Authority reportable political donations and electoral expenditure.

Political donors disclose the donations they make and receive and expenditure they incur by completing the Disclosure of Political Donations and Electoral Expenditure by a Political Donor form.

What are political donors’ ongoing disclosure obligations?

After 31 December 2008, political donors are required to disclose reportable political donations made and received and electoral expenditure incurred every six months for the periods ending 30 June and 31 December each year.

Declarations for the period ending 30 June are due to be lodged with the Authority by 25 August each year.

Declarations for the period ending 31 December are due to be lodged with the Authority by 25 February each year.

Political donors who do not make or receive reportable political donations or incur $1,000 or more in electoral expenditure during a six month period are not required to lodge a declaration for that six month period.