Dissenting report by Coalition members of the Committee

1.Introduction

1.1The Coalition members of the Joint Standing Committee on Electoral Matters propose this Dissenting Report in response to the Chair’s Draft Conduct of the 2022 federal election and matters related thereto Final Report. This Dissenting Report outlines the Coalition members of the Committee’s objections to the Report’s recommendations and provides alternate proposals to improve Australia’s electoral system.

1.2This report is to be read in conjunction with the Coalition members of the Committee’s Dissenting Report into the Conduct of the 2022 federal election and matters related thereto Interim Report as per the attached.

1.3The Coalition members of the Committee hold that electoral changes ought to be assessed on the following four core principles:

• Fair, open and transparent elections;
• Equal treatment of all political participants;
• Freedom of political communication and participation, without fear of retribution; and
• Recognising freedom of thought, belief, association and speech as fundamental to free elections.
  4. Australia’s success as a liberal democracy is reliant on the effective operation of the Australian Electoral Commission (AEC), and the Federal Government more broadly, to satisfy and uphold these four principles.
  5. Ensuring that Australians have continued faith in the electoral system is paramount to Australian’s faith in its institutions of Government.
  6. The Coalition members of the Committee will not support attempts to legislate amendments to the Electoral Act that are targeted at supporting certain political participants or types of political participants. Rather, the Coalition members of the Committee contend that all parties and candidates ought to be treated equally and recommendations should aim to encourage political participation, not thwart it with regulation. Indeed, recommendations ought to improve our democracy for all Australians, not support partisan interests.
  7. As such, the Coalition members of the Committee’s comments and recommendations aim to improve Australia’s democracy and uphold its four principles to promote a free and fair liberal democracy.

2.Recommendations from the Coalition to the Final Report’s Recommendations

1.8The Coalition members of the Committee’s five proposed recommendations are to be read in conjunction with the six proposed recommendations in its Dissenting Report to the Conduct of the 2022 federal election and matters related thereto Interim Report.

1.9The Coalition members of the Committee recommend that Section 46 of the Commonwealth Electoral Act be amended so that the process for commencing redistributions after the first meeting of the House of a new Parliament be reduced from 12 months to 3 months.

1.10Section 46 of the Commonwealth Electoral Act determines that the commencement of the redistribution process must be 12 months after the first meeting of the House of Representatives in a new Parliament.

1.11The AEC’s Redistribution process is a very sophisticated and consultative undertaking. With two stages of consultation and extensive quantitative analysis, the Redistribution Committee finalises new electoral boundaries for the next federal election approximately 12 to 18 monthsafter issuing a Notice of a Redistribution.

1.12However, the Coalition members of the Committee believe that this process starts far too late in the electoral cycle. As of November 2023, Victoria and Western Australia are still both in their first phase of consultation, with the AEC reporting that Victoria’s redistribution will not be finalised until 17 October 2024. By comparison, the Prime Minister can call the next federal election three months beforehand, on 3 August 2024, resulting in a mini-redistribution because the new boundaries would not yet have legal effect.

1.13As such, the Coalition members of the Committee propose to amend the Electoral Act to compel the AEC to commence Redistributions as early as possible while ensuring that the Redistributions are as best informed by stakeholder consultation and quantitative analysis as possible. This process would help to ensure that electoral boundaries are finalised six to twelve months before the earliest date a federal election can be called.

1.14Bringing the final determination of the electoral boundaries forward would provide Members of Parliament and candidates with greater knowledge of their relevant electorate prior to a federal election. This, in turn, would help facilitate greater engagement in the electoral process.

1.15As such, the Coalition members of the Committee recommend to decrease the length of time the Electoral Commissioner must wait to commence a redistribution from 12 months to 3 months after the first meeting of the House of Representatives of a new Parliament.

1.16The Coalition members of the Committee recommend that the AEC be provided additional resources to expand its standardised civics program in Australian secondary schools to best inform students of their voting rights and responsibilities.

1.17The Coalition members of the Committee note the value of Recommendation 12, stating that:

“The Committee recommends that the Australian Government consider ways to strengthen civics education programs in Australian schools to better equip and prepare the next generation of voters to cast their first vote.”

1.18However, to ensure a non-partisan and professional civics program, the Coalition members of the Committee believe that this is best delivered exclusively by the AEC, acknowledging their existing expertise administering the highly successful National Electoral Education Centre in Canberra.

1.19The Coalition members of the Committee propose to expand the National Electoral Education Centre to have a greater degree of classroom learning across all Australian secondary schools.

1.20The Coalition members of the Committee believe that this recommendation would also assist to address Recommendation 17 which recommends enabling “the Australian Electoral Commission to employ senior electoral officers on a more permanent basis.” If the AEC were to coordinate a year-long civics program, then it would be able to employ a greater number of senior electoral officers on a more permanent basis by giving them dual responsibility of coordinating elections and coordinating secondary school civics education programs.

1.21The Coalition members of the Committee also support resourcing the AEC adequately for the purposes of delivering this civics program.

1.22The Coalition members of the Committee recommend that the AEC provide greater training for staff, specifically returning officers, to ensure that the AEC’s rules and regulations are applied homogeneously across polling booths.

1.23The Coalition members of the Committee note that there is room for improvement regarding the homogenous application of the AEC’s rules and regulations across polling booths.

1.24The Coalition members of the Committee request additional training for staff and returning officers on engagement with political participants and protocols to manage instances of the general public harassing political participants.

1.25The Coalition members of the Committee recommend that the Government establish transparency obligations on large social media platforms.

1.26Foreign interference is now Australia's principal national security threat which risks significantly undermining our values, freedoms and way of life. While Australia has led the world in combating this threat, foreign actors will continue to seek to undermine trust in our democratic institutions, including our electoral integrity.

1.27The Coalition members of the Committee suggest the legislation of transparency obligations on large social media platforms that detail the country of origin of social media posts. The Coalition members of the Committee believe that Australians ought to be made aware of the origin of the content they are exposed to so they can make up their own minds about its merits.

1.28This would be complementary to the AEC’s current disinformation register which catalogs, in a transparent manner, the various unfounded claims that are made, mostly on social media, about our electoral processes. Combating foreign interference would also be complementary to the enforcement of Section 321DA of the Commonwealth Electoral Act, which prevents foreign campaigners authorising, and therefore distributing, electoral matter.

1.29The Coalition members of the Committee recommend that the Electoral Integrity Assurance Taskforce table reports to the JSCEM prior to and post federal electoral events.

1.30The Coalition members of the Committee believe that the Electoral Integrity Assurance Taskforce ought to table reports to the JSCEM relating to foreign interference so that the JSCEM is fully aware of the risk that foreign interference may have on Australian elections.

1.31The Coalition members of the Committee request a report be provided to the JSCEM prior to each electoral event detailing the risk of foreign interference and a report after each electoral event detailing the frequency, severity, and actions taken to prevent foreign interference throughout the electoral events. The Coalition members of the Committee note that such a report would likely need to be tabled in camera to ensure the integrity of national security.

3.Coalition Reply to the Final Report’s Recommendations

Recommendation 1

The Committee recommends the Government consider asking the Committee to inquire into increasing the size of the House of Representatives to reduce malapportionment and improve the ratio of electors to MPs.

1.32The Coalition members of the Committee notes this recommendation to have the JSCEM to inquire into increasing the size of the House of Representatives, and requests more detail on a draft Terms of Reference.

1.33The Coalition members of the Committee notes that the Government had no mandate to increase the size of the Parliament and have concerns about increasing the size of the House of Representatives, and the Senate, in the middle of a cost-of-living crisis.

Recommendation 2

The Committee recommends that the representation of the territories in the Senate be increased from two to four Senators each.

1.34The Coalition members of the Committee oppose this recommendation on the grounds that increases to the number of Territory senators in isolation would worsen malapportionment. Any change to the number of Territory senators could only be considered alongside Recommendation 1.

1.35At the 2022 Federal Election, 16,753,557 voters elected 36 senators across Australia’s six States. On average, this represented 465,377 votes per senator. However, for the two Territories, 314,025 ACT voters elected two senators, and 145,851 NT voters elected two senators. On average, this represented 114,969 votes per senator. As such, a Senator representing a State required four times as many votes as a senator representing a Territory.

1.36If Recommendation 2 is adopted, then a senator from New South Wales would require 25 times more votes than a senator from the Northern Territory to be elected. The Coalition members of the Committee oppose increasing the number of Territory Senators on the grounds that it would be the greatest level of malapportionment since Federation.

1.37The Coalition members of the Committee also believe that any increase to the number of Territory senators should only be considered alongside Recommendation 1 in relation to increases to the number of senators and House of Representative members more broadly. However, the Coalition’s position on such an inquiry remains subject to the terms of reference.

Recommendation 3

The Committee recommends that the Commonwealth Electoral Act 1918 is amended to permit on-the-day enrolment for federal elections and referendums.

1.38The Coalition members of the Committee support resourcing the AEC as best as possible to improve voter enrolment across Australia, particularly in regional, rural, and remote parts of Australia.

1.39The AEC’s Federal Direct Enrolment and Update (FDEU) program has seen substantial success in 2023. Indeed, from January 1 2023 to July 31 2023 alone, 224,494 people were added to the electoral roll through FDEU activities, 44,827 of which were Indigenous. Voter enfranchisement has also been supported by Medicare cards and Australian citizenship certificates joining Australian drivers’ licenses and Australian passports as valid forms of ID as of 17 February 2023.

1.40As such, the Coalition members of the Committee do not believe that there is a sufficient argument in favour of on-the-day enrolment, and do not support this recommendation.

Recommendation 4

The Committee recommends the Australian Electoral Commission continue to develop close relationships with relevant community organisations in addressing barriers to Aboriginal and Torres Strait Islander electoral participation, particularly in remote areas, with a focus on the following initiatives:

locally-engaged workforces

community-staffed voting centres

voter education programs, and

appropriate communication.

1.41The Coalition members of the Committee support the AEC developing closer relationships with relevant community organisations provided that the community organisations do not hold partisan relationships with political participants to ensure that addressing barriers to Aboriginal and Torres Strait Islander electoral participation are not addressed under a partisan lens.

Recommendation 5

The Committee recommends the repeal of subsections 93(8)(a) and 118(4) of the Commonwealth Electoral Act 1918.

1.42The Coalition members of the Committee empathise with the notion of removing the “unsound mind” condition from the Electoral Act. However, the Coalition members of the Committee note that the primary function of the “unsound mind” provision is to remove those from the electoral roll that have lost the physical and mental capacity to complete a ballot paper. This is a useful provision because it allows the AEC to not send fines or notices for not voting to those that no longer have the ability to vote.

1.43As such, the Coalition supports amending the “unsound mind” provision to reflect more suitable language, such as “incapacitated”, but warns against removing the “unsound mind” provision entirely without a suitable replacement due to the unintended consequences of potentially causing distress to electors who are unable to vote and subsequently are fined.

Recommendation 6

The Committee recommends that the AEC co-design independent, secure and accessible voting options with disability advocacy organisations and people within the disability community.

1.44The Coalition members of the Committee support this recommendation on the proviso that the sanctity of the individual’s vote is preserved, and the voter has primacy at all times.

Recommendation 7

The Committee recommends that the AEC:

expand the accessibility standards for both pre-poll and polling centres;

standardise its voting material in accessible formats, and

ensure staff in polling centres are appropriately trained in options for assisting people with disability to vote.

1.45The Coalition members of the Committee support this recommendation.

Recommendation 8

The Committee recommends that the Government expands Part XVB of the Commonwealth Electoral Act 1918 to enable more people to vote via telephone, including:

people with disability (beyond the Electoral Act’s existing provision for blind and low-vision voters);

Australians overseas but otherwise eligible to vote, and

people in remote communities without access to a remote polling station.

1.46The Coalition members of the Committee oppose this recommendation on the grounds that the expansion of telephone voting is unnecessary, puts a logistical burden on the AEC and the scrutiny of the count, and substantially increases the risk and ability for foreign governments to interfere with Australia’s elections.

1.47It is deeply problematic to contemplate the expansion of telephone voting for Australians overseas, which would inevitably include telephone voting for Australians residing in foreign authoritarian states, which are also the highest source of foreign interference and espionage attempts in our country. It is highly unlikely that the cyber and national security risks created by such a move could ever be entirely mitigated.

1.48As noted by the Electoral Integrity Assurance Taskforce, a risk does not need to eventuate in order to undermine electoral integrity. Potential threats to electoral integrity can come in the form of either “perceived or actual interference in electoral processes”. The perception alone that such foreign interference could occur would undermine Australia’s electoral integrity.

1.49Furthermore, the Coalition members of the Committee note that the inclusion of telephone voting would place a logistical burden on the AEC beyond its current remit and further note that this Report already believes the AEC is under resourced for its current tasks. This is in addition to the difficulty of scrutineering a telephone vote, and providing assurance to the public of the integrity of the system.

1.50Coalition members of the Committee also hold deep concerns that if too many Australians are given the opportunity to vote via telephone, that call centres may crash or become overrun by phone calls and have a greater inhibition on the ability for Australians to vote than would otherwise be the case.

Recommendation 9

The Committee recommends the AEC continue to run its mobile polling program for older Australians living in aged care.

1.51The Coalition members of the Committee support this recommendation.

1.52However, the Coalition members of the Committee request that the AEC provide greater notice to the relevant political participants of which aged care centres are being used and for what times.

Recommendation 10

The Committee recommends that the administrative burden of voting overseas is reduced.

1.53The Coalition members of the Committee support mechanisms to increase voter turnout, including for eligible voters that are not residing in Australia on voting day.

1.54However, the Coalition members of the Committee will reserve their judgment on specific policy positions until such policy positions are put forward and note that very limited evidence was provided to the inquiry to substantiate this recommendation.

Recommendation 11

The Committee recommends that the Australian Government continue to support people who wish to become Australian citizens and take up their associated voting franchise to do so.

1.55The Coalition members of the Committee believe that immigration policy is beyond the scope of electoral reform and that to mold the standards of rights to citizenship to the electoral system is a distortion of its integrity.

Recommendation 12

The Committee recommends that the Australian Government consider ways to strengthen civics education programs in Australian schools to better equip and prepare the next generation of voters to cast their first vote.

1.56The Coalition members of the Committee support expanding the AEC’s education program as per its Proposed Recommendation 2.

Recommendation 13

The Committee recommends that charities registered under the Australian Charities and Not-for-profits Commission be exempt from the donation caps recommended in the Committee’s interim report into the 2022 federal election, but that these caps be applied to political parties and candidates, along with associated entities, other third parties and significant third parties.

1.57The Coalition members of the Committee do not support donation caps that exclude charities registered under the Australian Charities and Not-for-profits Commission.

1.58As stated by the Coalition members of the Committee in the Conduct of the 2022 federal election and matters related thereto Interim Report, “Donation caps can only be fair when political parties and candidates are treated fairly and equally.” The Coalition members of the Committee’s position has not changed. Any donation caps must include party membership fees, subscriptions, levies, affiliation fees, union affiliated fees, and any charity registered under the Australian Charities and Not-for-profits Commission.

1.59A cap that treats political donors differently would create an uneven regulatory playing field, particularly as it is proposed, and creates a partisan approach to electoral reform.

Recommendation 14

The Committee recommends that the Australian Government amend the Commonwealth Electoral Act 1918 to provide clarity around the following terms:

‘electoral matter’, which relates to material specifically supporting or opposing one or more parties or candidates in a federal election, and which carries the appropriate authorisation;

‘electoral expenditure’, to ensure that only expenditure for authorised electoral matter, funded out of a Commonwealth Campaign Account, is captured;

‘third party’, to clarify that an organisation qualifies as a third party if ‘the amount of electoral expenditure incurred by or with the authority of the person or entity during the financial year is more than $20,000’, noting the definition of ‘electoral expenditure’ above.

1.60The Coalition members of the Committee oppose amending the definitions to ‘electoral matter’, ‘electoral expenditure’, and ‘third party’, as the current definitions are sufficient.

1.61The Coalition members of the Committee will revisit its position on these definitions in the context of a proposed expenditure cap as per Recommendation 26 of the Interim Report. As the Coalition members of the Committee do not support expenditure caps for federal elections as they are proposed, the Coalition does not support amending these definitions.

Recommendation 15

The Committee recommends that contingent on the Australian Government introducing truth in political advertising laws, that the media blackout, known as the relevant period in the Broadcasting Services Act 1992, be removed.

1.62The Coalition members of the Committee oppose measures that purport to adjudicate truth in political advertising and, as such, would not support the removal of the media blackout laws.

1.63As stated in response to Recommendation 32 of the Interim Report, freedom of speech and the contestability of ideas are necessary for a healthy liberal democracy. Distinguishing between truth, opinion, and falseness in the context of an election is an inherently subjective process, and one that is appropriately left to voters.

1.64The Federal Government and its bureaucracy, no matter how independent and qualified, has neither the scope nor the ability to adjudicate truth in election campaigns.

Recommendation 16

The Committee recommends that the Australian Government ensure that the Australian Electoral Commission is resourced to employ staff at the appropriate level to facilitate elections to the high standard expected by the Australian community.

1.65The Coalition members of the Committee believe that the resourcing of the AEC is a matter for the Government.

Recommendation 17

The Committee recommends that the Australian Government amend section 35 of the Commonwealth Electoral Act 1918 to enable the Australian Electoral Commission to employ senior electoral officers on a more permanent basis.

1.66The Coalition members of the Committee support enabling the AEC to employ senior electoral officers on a more permanent basis if it is for the purposes of providing a standardised civics program in Australian secondary schools to inform students of their voting rights and responsibilities as per the Coalition members of the Committee’s Proposed Recommendation 2.

Recommendation 18

The Committee recommends that the Australian Electoral Commission expand its recruitment drive to employ staff for selected polling places who can speak the targeted language(s) for those communities.

1.67The Coalition members of the Committee support the AEC providing material in different languages through educational programs or online resources.

1.68However, to ensure transparency of the AEC’s instructions, the Coalition members of the Committee only support AEC staff communicating with voters in languages other than English when it is absolutely necessary to do so.

Recommendation 19

The Committee recommends that the Australian Government engages with the Australian community to determine contemporary expectations of standards in order to address all matters of qualification and disqualification for Parliament through legislation under sections 34 and 44 of the Constitution.

1.69The Coalition members of the Committee argue that sections 34 and 44 of the Constitution are clear.

1.70The Coalition members of the Committee would not support any referenda to amend these Constitutional provisions.

Recommendation 20

The Committee recommends that section 184AA of the Commonwealth Electoral Act 1918, application forms for postal votes, be amended or removed, so that postal vote applications can no longer be included with other material.

1.71The Coalition members of the Committee believe that political parties sending out postal vote applications is an extremely useful part of supporting voter turnout and as such, see no reason to amend the Electoral Act to prohibit such distribution.

Recommendation 21

The Committee recommends that section 184 of the Commonwealth Electoral Act 1918 be amended to clarify that postal vote applications must be sent directly to the Australian Electoral Commission’s nominated addresses.

1.72The Coalition members of the Committee see no need to change the longstanding practice of political participants assisting with voter turnout by distributing, collecting, and on-forwarding postal vote applications to the AEC.

4.Coalition Reply to the Interim Report

a.Recommendations from the Coalition to the Interim Report’s Recommendations

1.73As the Coalition members of the Committee have five proposed recommendations to the Final Report, the proposed recommendations from the Interim Report have been renumbered to begin at six.

1.74The Coalition members of the Committee recommend that the Electoral Act be amended to allow for the obligations of Registered Political Parties to be applied to independent candidates where the Australian Electoral Commissioner believes those candidates are conducting their activities in a manner consistent with a Registered Political Party.

1.75The Coalition members of the Committee recommend that the Electoral Act be amended to allow for the obligations of Registered Political Parties to be applied to independent candidates where the Australian Electoral Commissioner believes those candidates are conducting their activities in a manner consistent with a Registered Political Party.

1.76The Australian Electoral Commission should be empowered to require independent candidates to provide transparency on the activities of independent candidates or independent parliamentarians where those activities involve coordination, support, resourcing or assistance with other independent candidates or parliamentarians.

1.77It has been recognised through the course of the Committee’s inquiry that the 2022 Election saw a series of successful independent candidates, now known as the Teal Party, contest a number of seats.

1.78There has been evidence presented to the Parliament, and through this inquiry, that suggests that this was done, in part, as a coordinated effort and that this coordination was either not presented in a transparent manner, or was unable to be categorised under the current electoral law.

1.79It is concerning that allegations of this activity were made, while the candidates in question claimed to be unaffiliated independent candidates.

1.80The statement from Teal members of parliament and candidates that they are not a political party is as offensive as it is wrong. Creating a level playing field between established political parties and the Teal Party will ensure equal treatment and limit the ability of ‘political players’ to game the system.

1.81The Coalition members of the Committee recommend that the Government give consideration to the adequacy of the current electoral regulatory framework to nominate as a candidate at a Commonwealth election, and in particular any measures that could be implemented to strengthen the integrity of the system.

1.82It is important that the regulatory framework to support the nomination of candidates in Commonwealth elections reflects community expectations and is consistent with the strong integrity of electoral outcomes expected under the Commonwealth Electoral Act.

1.83The Committee, and the Parliament more broadly, has heard evidence in relation to the ability for the nomination of large numbers of candidates for election that create burdens on electors, barriers to entry for some candidates or parties, and the potential for candidates to be utilised purely for preference distribution.

1.84It is imperative that electors are provided a choice of candidates that is reflective of the community support and that the system of nomination is transparent and effective.

1.85The Coalition members of the Committee recommend the pre-poll period be statutorily limited to be a maximum of one week prior to election day and that the Australian Electoral Commission provide parties and candidates with the earliest possible advice about prepoll locations.

1.86The Coalition members of the Committee support reducing the length of the pre-polling period from two weeks (12 days) to one week (five days).

1.87The reason for the proposed reduction is twofold. Firstly, a reduction in the length of the pre-poll period would sizeably reduce the administrative burden on both the AEC and election candidates. Secondly, reducing the length of the pre-poll period would also allow for voters to make their voting decisions with the most current information.

1.88Voters who need to vote prior to polling day are also able to apply for a postal vote. The limitation of pre-poll to five days would therefore not impact the ability of a voter to cast their vote upon receipt of that form.

1.89This proposed change could also be made without diminishing the pre-poll arrangements for remote communities, in order to provide a greater access to enfranchisement to these electors. In limiting pre-poll in this way, it will allow a greater focus of resources to this important task.

1.90The Coalition members of the Committee recommend that a new offence of ‘electoral violence or intimidation’ be added to the Electoral Act. This amendment is fundamental to address behaviour arising in an election such as violent, obscene or discriminatory abuse, property damage, and stalking candidates or their supporters to intimidate them or make them feel unsafe.

1.91No one should feel unsafe while participating in our democratic process.

1.92Over an extended period, the Committee and the Parliament has been presented evidence that political volunteers and supporters have been subject to politically motivated abuse, violence or harassment. The strength of our electoral system rests on the contestability of ideas and the presentation of that contest to electors. But this contest must be safe for the participants engaging in it. There is no greater importance than securing this contest in the electoral system for the ensuring of free and fair elections.

1.93Any behaviour that results in the withdrawal of participants from our democratic process, whether it be the intimidation of electors from supporting the candidate or party of choice or for standing for election, should be treated with the same severity and urgency as foreign interference in our electoral system or the impact of other electoral-specific offences.

1.94To that end, threats that stop, influence or hinder someone’s participation in an election are a threat to all of us and should be dealt with through a standalone offence, with specific sanctions that relate to the removal of the threat from preventing further electoral interference.

1.95The Coalition members of the Committee recommend that the AEC return all electoral practises to pre-COVID standards.

1.96Following the removal of any restrictions that were placed upon electors who are participating in Commonwealth elections relating to the COVID-19 pandemic, the Coalition members of the Committee believe there is no justification for any measures that were put in place to ensure the conduct of pandemic-elections to continue.

1.97The Government should commit to not continuing these measures until the Parliament determines otherwise as a result of physical restrictions placed on electors.

1.98The Coalition members of the Committee recommend that vote counts after polling day for each electorate should be carried out in the electorate itself, not transported considerable distances.

1.99The Coalition members of the Committee strongly support the counting of votes in locations within local electorates as far as possible. The Commission made extensive comment about their support for local campaign workers in the electoral process, including the scrutiny of the vote.

1.100By removing votes for counting at other and distant locations, campaign workers who are unable to travel for those counts do not have the ability to participate in the scrutiny of their local electorate. This is an important part of the democratic process, and the Australian Electoral Commission should recognise and support that participation, particularly at the point of scrutiny of the vote after polling day.

b.Coalition Reply to the Interim Report’s Recommendations

1.101As there are 21 recommendations in the Final Report, the recommendations from the Interim Report have been renumbered to begin at 22.

Recommendation 22

The Committee recommends that the Australian Government lower the donation disclosure threshold to $1,000.

1.102The Coalition members of the Committee believe that it is essential to balance the disclosure threshold with the potential risks to the privacy of contributors.

1.103Similarly, the disclosure threshold must not discourage participation in the electoral system by members of the community, civil society groups and businesses who could fear intimidation or retribution of supporting political parties or candidates.

1.104In the 2022 Federal Election, there were numerous incidents of small businesses endorsing political candidates and/or political parties and facing threats and boycotts by left-wing activist groups.

1.105Businesses and private citizens ought to be able to contribute funds to political parties across the political spectrum without malevolent political players making threats based on information sourced from the AEC’s disclosure reports.

1.106In addition to this, the Coalition members of the Committee note that while State and Territory Governments have lower, if varied, rates of disclosure, the system as it applies at a Commonwealth level should account for potential expenditure in each jurisdiction. The Coalition suggests reducing the national annual disclosure threshold to the sum of each of these jurisdictions’ respective disclosure thresholds, $8,000 per financial year, would be a more appropriate figure.

Recommendation 23

The Committee recommends that the Australian Government introduce ‘real time’ disclosure requirements for donations to political parties and candidates.

1.107The Coalition members of the Committee support the implementation of a reduced disclosure timeframe for political parties and candidates.

1.108A monthly disclosure period strikes the balance between ensuring electoral transparency and allowing political parties and candidates to undertake appropriate due diligence without unduly inhibiting their ability to execute their proper function in Australian democracy – to represent the Australian people.

1.109For example, if a donation was received by a political party or a candidate, then the party or candidate requires enough time to determine the origin of the funds, determine whether the receipt of the funds is consistent with the Electoral Act, and to return the funds if the funds were found to be from a prohibited donor.

1.110Disclosure requirements shorter than a month would be extremely administratively burdensome, particularly given many political parties rely on volunteers to manage local party units.

1.111The Coalition believes that reporting monthly is a satisfactory period to achieve realistic ‘real time’ disclosure.

Recommendation 24

The Committee recommends that the Australian Government gives consideration to amending the definition of ‘gift’ in the Electoral Act to ensure it meets community expectations of transparency in political donations.

1.112The Coalition members of the Committee are open to considering amendments to the Electoral Act’s definition of a ‘gift’. However, these should be considered in the context of the impact that any changes to the definition of a ‘gift’ would have on bequests and gifts-in-kind, particularly in conjunction with any amendments resulting from Recommendation 4.

Recommendation 25

The Committee recommends that the Australian Government introduce donation caps for federal election donations.

1.113The Coalition members of the Committee do not support the implementation of a donation cap as it is proposed.

1.114Donation caps can only be fair when political parties and candidates are treated fairly and equally, and therefore any donation caps must include party membership fees, subscriptions, levies, affiliation fees, and union affiliation fees.

1.115Such a cap would create an uneven regulatory playing field, particularly as it is proposed, and creates a partisan approach to electoral reform.

Recommendation 26

The Committee recommends that the Australian Government introduce expenditure (also known as spending) caps for federal elections.

1.116The Coalition members of the Committee do not support expenditure caps for federal elections as they are proposed.

1.117The Coalition members of the Committee strongly reject a system of expenditure caps where independent candidates are treated differently to a candidate from a political party.

1.118In addition, it is particularly egregious that the Government members propose a system that would rig an expenditure system in their favour. A spending cap that fails to take into account Labor’s union-funded campaign machine is nothing short of a financial gerrymander.

1.119All candidates should be treated equally by legislation in a democracy. To do otherwise is to undermine the democratic process.

Recommendation 27

The Committee recommends that donation caps and expenditure caps apply to third parties and associated entities.

1.120While the Coalition members of the Committee will not support electoral expenditure caps, should they be introduced, any caps on electoral donations or expenditure should apply to third parties and associated entities.

1.121In addition, expenditure caps should be lower for third parties and related entities. This is appropriate as they are not participating as candidates or as political parties.

Recommendation 28

The Committee recommends the Australian Government introduce a requirement that all political parties, members of Parliament, candidates, associated entities and third parties be required to establish a Commonwealth Campaign Account for the purpose of federal elections, to better allow for disclosure and monitoring.

1.122The Coalition members of the Committee support this recommendation, subject to further detailed legislation being presented by Government.

Recommendation 29

The Committee recommends the Australian Government introduces a new system of administrative funding to recognise the increased compliance burden associated with a reformed system.

1.123The Coalition members of the Committee note this recommendation. This recommendation is dependent on the administrative burdens resulting from the outcomes of the other recommendations.

1.124Should the administrative burden increase on political parties and candidates, a detailed proposal of the new system of administration funding should be considered by this Committee.

Recommendation 30

The Committee recommends the Australian Government introduce a new system of increased public funding for parties and candidates, recognising the impact changes a reformed system will have on private funding in elections.

1.125The Coalition members of the Committee note this recommendation. An increase in public funding for political parties is reliant on the outcomes of other recommendations.

1.126Australia is experiencing a cost-of-living crisis and there has not been sufficient evidence provided to the Committee that demonstrates that increasing public funding for parties and candidates is the best use of taxpayer funds, particularly over continuing to allow business and private citizens to contribute to the democratic process in a fair and transparent way.

Recommendation 31

The Committee recommends the Australian Government provide the Australian Electoral Commission with additional resources to support, implement and enforce these reforms.

1.127The Coalition members of the Committee note this recommendation. The Coalition members of the Committee note that an appropriately funded Australian Electoral Commission is essential to a functioning electoral system.

Recommendation 32

The Committee recommends that the Australian Government develop legislation, or seek to amend the Commonwealth Electoral Act 1918, to provide for the introduction of measures to govern truth in political advertising, giving consideration to provisions in the Electoral Act 1985 (SA).

1.128The Coalition members of the Committee oppose the introduction of measures that purport to adjudicate truth in political advertising. Freedom of speech and the contestability of ideas are necessary for a healthy liberal democracy.

1.129Distinguishing between truth, opinion, and falseness in the context of an election is an inherently subjective process, and one that is appropriately left to voters. The Federal Government and its bureaucracy, no matter how independent and qualified, has neither the scope nor the ability to adjudicate truth in election campaigns.

1.130It would be inappropriate for any government body to censor political parties and candidates in their communications. Elections and election campaigns are and should remain a marketplace of ideas. If candidates or political parties make statements or release inaccurate policy positions, it is the role of the media, civil society and other political actors to hold their statements to account.

1.131That this proposition has been put forward by the party of Government who are responsible for the inaccurate and misleading 'Medicare' campaign in the 2016 election is the height of hypocrisy.

Recommendation 33

The Committee recommends that the Australian Government consider the establishment of a division within the Australian Electoral Commission, based on the principles currently in place in South Australia, to administer truth in political advertising legislation, with regard to ensuring proper resourcing and the need to preserve the Commission’s independence as the electoral administrator.

1.132The Coalition members of the Committee believe the role of the Australian Electoral Commission is to deliver electoral events and not to determine what is truth. Introducing such as function would substantially increase the size and the role of the AEC, but it would also politicise an institution that can only successfully exercise its core function due to its independence.

1.133The AEC Commissioner, Mr Tom Rogers, has stated that “any involvement of any electoral administration body…runs counter to the principles of neutrality and non-partisanship.”[1]1 The Coalition members of the Committee support the Commissioner’s comments and reiterate that arbitration of truth is not the role of the AEC.

Recommendation 34

The Committee recommends that, providing the Committee receives a reference to conduct a review of the next federal election, consideration of the new framework be included in terms of reference to the Committee. Such consideration could include the effectiveness of the revised arrangements, and identification of any further improvements.

1.134The Coalition members of the Committee consider that any amendments to the terms of reference is a decision for the relevant Minister in the next Parliament.

Recommendation 35

Consistent with the recommendation made in this Committee’s Advisory report on the Referendum (Machinery Provisions) Amendment Bill 2022, the Committee recommends that the Australian Government strengthen the opportunities for electoral enfranchisement and participation to allow the Australian Electoral Commission to support increased enrolment and participation, particularly of Aboriginal and Torres Strait Islander people, including in remote communities.

1.135The Coalition members of the Committee support mechanisms to increase electoral enfranchisement and participation, including among Aboriginal and Torres Strait Islander peoples.

Recommendation 36

The Committee recommends the Government resource the Australian Electoral Commission to work directly with Aboriginal and Torres Strait Islander community organisations to increase Indigenous enrolment and participation, particularly in remote communities.

1.136The Coalition members of the Committee support this recommendation.

Senator the Hon James McGrathSenator Ross Cadell

Deputy Chair

Mr James Stevens MPSenator the Hon Linda Reynolds CSC

The Hon Darren Chester MP

Footnotes

[1]Australian Electoral Commission, Committee Hansard, 28 September 2022, p. 4.