Electoral Disclosure Laws and the Thomson Affair

The Australian Electoral Commission today released its analysis of the Fair Work Australia report into Mr Thomson. The AEC’s analysis (which can be found here: http://www.aec.gov.au/Parties_and_Representatives/compliance/files/hsu-report.pdf)
discloses two significant issues with respect to the operation of the disclosure laws under the Commonwealth Electoral Act.
First, the ‘donations’ that allegedly funded the employment of staff to raise Mr Thomson’s profile in the electorate of Dobell did not require disclosure because they occurred before the date he was pre-selected as a candidate for the seat in 2007.

As he was a new candidate and had not run in the previous election, donations to support his campaign did not count until he was pre-selected. The vast bulk of the HSU money that was allegedly used to support Mr Thomson’s campaign, as set out in the Fair Work Australia report, occurred before he was pre-selected. Equally, his electoral expenditure only counted if it occurred during the election period (from the issue of the writs to polling day). So any expenditure that occurred earlier than this did not need to be declared by Mr Thomson.
The second issue is the high disclosure threshold, which in 2007-8 was $10,500. While the amount of all donations needs to be recorded by political parties and by donors in their returns to the AEC, they do not need to be ‘particularised’ unless a single donation is over the threshold amount. For example, expenditure of $4,826.99 to establish a Campaign Office would have to be disclosed in the overall total of donations made by the HSU or received by the ALP, but didn’t have to be specifically itemised. Hence the AWC cannot tell whether or not it has been disclosed, because all it has is a global figure.
Prior to 2006, the disclosure threshold was $1500, so a far greater proportion of donations had to be itemised and the names of donors disclosed. The Howard Government increased this to $10,000 in 2006 and indexed it, so it is steadily increasing. The Rudd Government promised to reduce it to $1000, but this was opposed by the Coalition and did not get sufficient support in the Senate. The Bill lapsed. The Gillard Government also promised, in its deal with the independents, to undertake electoral reform including the reduction of the disclosure threshold to $1000. The Bill passed the House of Representatives in 2010 but remains lingering in the Senate.
The Thomson affair is a timely reminder of the importance of electoral disclosure laws and the setting of sensible disclosure thresholds that on the one hand do not impose excessive bureaucracy on the parties but on the other hand allow transparency and scrutiny. It also raises the question of whether donations and expenditure on the campaigns of candidates which take place before they are pre-selected by a party, should also be disclosed after their pre-selection.
The biggest issue, however, is whether the Commonwealth should follow New South Wales and impose strict limits on political donations and electoral expenditure. While the NSW laws may have gone a bit too far, there is much to be said for reducing the amount of money spent on electoral campaigning and regulating donations both to ensure transparency and reduce the real and perceived influence of political donors. Unless we clean up the rules, more scandals will follow.
Anne Twomey, 16 May 2012.

Author Anne TwomeyPosted on May 16, 2012