Chapter 1 Introduction

Chapter 1 Introduction

Scope and conduct of the inquiry

1.1

Under the Commonwealth Electoral Act 1918 (hereafter referred to as ‘the Electoral Act’), the Australian Electoral Commission (AEC) is required, as soon as practicable after a federal election, to provide a report on the operation of the funding and disclosure scheme for tabling in Parliament.

1.2

That scheme, which forms Part XX of the Electoral Act, was introduced for the 1984 Federal Election following recommendations made by the Joint Select Committee on Electoral Reform (JSCER) in its First Report.1

1.3

The two fundamental elements of the scheme, as set out by that Committee, are:

1.4

Today, under current legislation, the funding and disclosure scheme is characterised by the following features:

1.5

Since the original scheme was introduced, a number of changes have been made. Briefly, these include:

1.6

In addition to these changes, the AEC has recommended further change in its submissions to JSCEM inquiries and its post-election Funding and Disclosure reports.4

 

Scope and conduct of the inquiry

1.7

The Committee has had a long history of examining the funding and disclosure regime. While the current inquiry originated in a reference in 2000, the Committee has also used its regular reports on the conduct of federal elections to make recommendations on specific aspects of the scheme.5

39 th Parliament
1.8

The Committee’s 1998 Federal Election report reviewed, and made recommendations on, the following aspects of the funding and disclosure scheme:

1.9

The Committee also made recommendations concerning the registration of political parties.6

1.10

On 29 June 2000, the Committee received a reference from the then Special Minister of State, Senator the Hon. Chris Ellison, to inquire into those recommendations of the AEC’s 1996 and 1998 reports on funding and disclosure not currently incorporated in legislation or not previously examined by the Committee. The Committee was asked to report on the desirability of incorporating the remaining AEC funding and disclosure recommendations into existing legislation.7

1.11

The Committee adopted the reference on 15 August 2000 and the inquiry was advertised in all national papers on 9 and 12 September 2000.

1.12

In November 2000, the Committee decided to extend the reporting timetable for this inquiry until its inquiry into the Integrity of the Electoral Roll was completed.

1.13

The Electoral Funding and Disclosure inquiry recommenced and was readvertised in The Weekend Australian on 7 July 2001.

1.14

The Committee received 21 submissions to its inquiry and held three public hearings in Canberra.8

1.15

The Committee’s reference lapsed when it ceased to exist at the dissolution of the House of Representatives on 8 October 2001.

40 th Parliament
1.16

In the course of its inquiry into the conduct of 2001 Federal Election the Committee made further recommendations on the funding and disclosure scheme concerning, among other things, anonymous and overseas donations.9

1.17

On Thursday 4 March 2004 the Senate asked the Committee to inquire into and report on:

(a) the matter relating to electoral funding and disclosure, which was adopted by the committee on 15 August 2000, and any amendments to the Commonwealth Electoral Act necessary to improve disclosure of donations to political parties and candidates and the true source of those donations; and

(b) any submissions and evidence received by the committee in relation to that inquiry of 15 August 2000.

1.18

The inquiry was advertised in The Australian on 17 March 2004 and members of the public were invited to make submissions.

1.19

The Committee wrote to all Members, Senators and political party secretariats inviting them to make submissions to the inquiry. The Committee also wrote to those people and organisations that made submissions to the previous inquiry.

1.20

The Committee received a further 13 submissions to the inquiry and held one public hearing in Canberra on 11 May 2004.10

1.21

The inquiry lapsed upon the dissolution of the 40 th Parliament.

41st Parliament
1.22

The review was re-referred to the Committee by the Senate on Tuesday 30 November 2004 requesting that it inquire and report on the matter relating to electoral funding and disclosure in the same terms as those referred in the 40 th Parliament (see page xi).

1.23

Since that referral, the Committee has received material and taken evidence relating to funding and disclosure arrangements in the course of its review of the 2004 Federal Election, and it made five recommendations to the Government about aspects of those arrangements. Chapter two of this report discusses these recommendations further.

1.24

On publication of its report on the 2004 Federal Election, the Committee resumed its consideration of evidence presented to it in the course of the 39 th and 40 th Parliaments addressing funding and disclosure.

1.25

While the Government has yet to respond formally to the Committee’s report on the conduct of the 2004 Federal Election, on 8 December 2005, the Parliamentary Secretary to the Minister for Finance and Administration, the Hon. Dr Sharman Stone, introduced the Electoral and Referendum Amendment (Electoral Integrity and Other Measures) Bill 2005. Among other things, this Bill proposes to amend Part XX of the Electoral Act with respect to funding and disclosure.



Footnotes

1

JSCER, First Report, September 1983, Chapters 9 and 10. Back

2

AEC (Submission No. 11, 40th Parliament), pp. 6-7. Back

3

AEC (Submission No. 11, 40th Parliament), p. 6. Back

4

AEC (Submission No. 1, 41st Parliament), p. 1. Back

5 See JSCEM, The 1998 Federal Election, pp. 123-140; JSCEM, The 2001 Federal Election, pp. 234-243; JSCEM, The 2004 Federal Election, pp. 311-344. Back
6 The guidelines for registration of political parties have implications for the funding and disclosure regime in that duly constituted and registered political parties may be attract public funding and may be subject to the disclosure provisions. Back
7 The AEC incorporated recommendations in its post-election Funding and Disclosure Report for the 1996, 1998 and 2001 Federal Elections, but not for that of 2004. Back
8 A list of these submissions is at Appendix A. Appendix B lists the public hearings and witnesses. Back
9 JSCEM, The 2001 Federal Election, Recommendations 32 and 33 (not supported by the Government). Back
10 Submissions to the inquiries of the 39th, 40th and 41st parliaments are listed at Appendix A; public hearings and witnesses at Appendix B.   Back

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