Why do we need to update our electoral laws?

    During the 2022 election campaign, the government committed to banning political donations for elections and putting an end to political fundraising in state election campaigns. 

    While reforms introduced in 2013 provided some regulation and transparency for political financing in South Australia, the government proposes to go further by banning electoral donations (as defined in the draft Bill) to registered political parties, members of Parliament, groups and candidates and limiting donations to other categories of participants.

    The government is committed to electoral reform that encourages the highest standards of integrity and accountability, promotes trust and confidence in our democratic institutions, and promotes engagement and participation in the democratic process. 

    What were the 2013 electoral reforms?

    In 2013, the government introduced an election funding and disclosure scheme in South Australia implementing:

    • a voluntary public funding scheme to partially reimburse political parties and candidates for political expenditure
    • prescribed limits on political expenditure for parties, candidates and groups who have opted into the funded scheme
    • a regulatory disclosure scheme, requiring political parties, third party campaigners, candidates and associated entities to disclose certain financial details, including details of all gifts received and loans valued over a certain amount. 

    These reforms were designed to improve public confidence in the electoral process, transparency and accountability, and political integrity and fairness. 

    Prior to this, there was no legislative framework in South Australia for the public funding of elections, regulation of expenditure of financial disclosure of political donations. 

    What is the current model for political donations?

    Political parties and candidates currently receive money from a wide range of private sources. These include donations from: 

    • corporations
    • unions and union affiliation fees
    • partnerships
    • unincorporated associations 
    • trusts
    • other lobby and issue groups
    • individuals
    • membership subscriptions. 

    They also receive money in other forms, such as sponsorships for conferences or publications, loans, income from investments, commercial transactions or through the provision of services. They can also opt in to receive public funding which is allocated on a per vote basis and subject to a formula. 

    The current regulatory disclosure scheme requires all political parties, candidates, third party campaigners and associated entities to disclose certain financial information. Anonymous gifts valued at over $200 are unlawful and special reporting obligations apply to gifts valued over $25,000. 

    See our Explanatory Guide for more detail about the current scheme.