Electoral Legislation Amendment (Fairer Contracts and Grants) Bill 2023

High-Level Summary
The bill proposes to amend the Commonwealth Electoral Act 1918 to prevent political donations that could influence the outcome of contracts, tenders, grants, approvals, licences, and permit processes. It aims to strengthen the integrity of government decision-making by prohibiting certain donations from corporations and their close associates.

Summary
The bill amends the Commonwealth Electoral Act 1918 by introducing measures that prohibit corporations and their close associates from making political donations above the disclosure threshold to a party of government in several circumstances. These include: within 12 months before and after applying for a grant of Commonwealth money; within 12 months before and after applying for an approval, licence, or permit under Commonwealth law; and within 12 months before and after applying for a tender. The bill defines 'close associates' broadly to include related corporate bodies, directors, officers, and lobbyists. New sections introduced in the Act also define 'prohibited donor' and 'prohibited gift recipient,' ensuring that donations do not influence the allocation of government resources. If contraventions occur, arrangements may be voided, and funds recovered by the Commonwealth.

Argument For
Normative Bases
  1. Anti-Corruption
  2. Pro-Democracy

The bill should be supported because it aims to enhance the integrity and transparency of government decision-making processes. By prohibiting political donations from corporations and their close associates during critical periods, it helps to ensure that decisions regarding government contracts, grants, and approvals are made in the public interest, rather than being swayed by private interests. This measure is crucial for maintaining public confidence in democratic institutions and reducing the potential for corruption [Judgment].


Argument Against
Normative Bases
  1. Value-Neutral / Epistemic Objection
  2. Propertarianism

While the bill aims to prevent undue influence, it could be argued that it imposes excessive restrictions on corporations' ability to participate in political discourse. The broad definition of 'close associates' may inadvertently capture individuals and entities with minimal influence over the corporation's political activities, thus restricting their legitimate rights to engage in the political process. Furthermore, the bill may introduce compliance burdens that could deter corporate entities from engaging in legitimate business activities with the government [Judgment].


Date:

2023-09-04

Chamber:

Senate

Status:

Before Senate

Sponsor:

WATERS, Sen Larissa

Portfolio:

Unspecified

Categories:

Anti-Corruption, Democratic Institutions, Discrimination / Human Rights

Timeline:
04/09/2023
23/07/2025

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