Victoria’s new electoral laws will limit the influence of big money, reinstate transparency, and see the Labor and the Coalition return some donations to their nominated entities, though risks remain without proper expenditure caps said Transparency International (TI) Australia.

Significant reforms include:

• An introduction of a $7,500 donation cap, doubled for independent candidates or registered political parties that are new entrants. With a special cap of $5030 to apply from April 15 to November 28.
• The $7,500 political donation cap applying to donations from a registered political party, candidate, group, elected member, associated entity or third-party campaigner.
• Abolishing nominated entities’ ability to funnel unlimited funding to Labor and the Coalition for state election campaigns.
• Labor and the Coalition will return any donations received from their nominated entities after the High Court decision above the $7,500 cap. Any donation received from their nominated entities from 1 July 2023 to 14 April 2026, yet to be spent and in the old state campaign accounts will also be returned.
• A planned statutory review to examine both donation and expenditure caps after the 2026 election including a public consultation.
• A reinstatement of ‘real-time’ disclosure of donations for donations above the $1,250 threshold and for any multiple donations from a single source that go above the threshold.
• An increase in administrative funding that can’t be used for election campaigning up to $300,000 (from $248,460) for an independent member and first member of a party elected, then $100 000 (up from $86,950) for the second member elected and $55 000 (up from 43,490) for each of the third to the forty-fifth member elected.

Clancy Moore, CEO of anti-corruption NGO, Transparency International Australia, said:

“Big money in politics has a corrupting influence on our democracy.”

“We welcome the legislation which limits donations from big business, campaign groups and wealthy individuals. Importantly, it also deals with the MCG size loophole that allowed Labor and the Coalition to line their pockets with millions of dollars in campaign funds from their nominated entities.”

“There is still a risk of US style arms race. Unlike WA, NSW and Queensland, the legislation does not include expenditure caps on the amount parties, campaigners or candidates can spend on election campaigns.

“This means that the November election could see major parties and campaign groups, like Advance or GetUp, splashing millions on political advertising to influence the election.”

“The inbuilt statutory review of the legislation to put donation and expenditure caps under the microscope after the 2026 election is vital safeguard and ensures the public are consulted on future changes.”

“Importantly, the changes must not entrench the major parties and incumbent MPs.”