Election Funding, Expenditure and Disclosure

Forbes Shire Council Local Government By-Election (election of 1 Councillor)

9 May 2015

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Election Funding, Expenditure and Disclosure

Election Funding Authority (EFA) replaced by the NSW Electoral Commission

Responsible for the administration of:

• Election Funding, Expenditure and Disclosures Act 1981

• Election Funding, Expenditure and Disclosures Regulation 2009

Supported by the Funding, Disclosure and Compliance Branch

Candidates

A candidate is:

• a person who accepts a gift (including a political donation) for a purpose related to a future election

• a person who makes a payment for electoral expenditure for a purpose related to a future election

• a person applying for registration as, or is registered as, a candidate

• a person nominated as a candidate at an election or by-election

Registration of Candidates

Registration of Candidates

• Every person intending to contest an election must register as a candidate and appoint an official agent before accepting a gift (incl. a political donation) or making a payment for electoral expenditure

• Registration is required whether or not the person nominates as a candidate for an election

• Any candidate who nominates for the election and has not previously applied for registration will be deemed to be registered on nomination day and is required to appoint an official agent

• Candidates are registered for a particular election and must register for each election they want to contest in order to accept political donations or incur electoral expenditure for those elections

• Registration forms must be lodged with the NSW Electoral Commission

Official Agents

Official Agents for Candidates:

• Every candidate is required to appoint an official agent other than themselves for the election. This includes any candidates that are deemed to be candidates on nomination day.

• If at any time the candidate is required to appoint an official agent but has not done so, the candidate is deemed to be their own official agent. However the appointment of an official agent is required within 10 calendar days.

• A person can be an official agent for more than one candidate contesting the election.

• An official agent retains office until their appointment is revoked by the candidate that appointed them or they resign or die.

• The official agent’s appointment ceases once the disclosure obligations for the candidate are met.

Official Agents (Cont’d)

Official agents must:

• be on the NSW electoral roll;

• not have been convicted of an indictable offence;

• not have been convicted of an offence under the Election Funding, Expenditure and Disclosures Act;

• not have been convicted of an offence involving dishonesty;

• not have been convicted of an electoral offence;

• have successfully completed the online training (training not required for CPA, CA or IPA members);

• be appointed by the candidate.

Responsibilities of the Official Agent

An official agent is responsible for:

• complying with the legislation on behalf of the candidate by whom they were appointed;

• operating the campaign account (where one is required);

• receiving political donations and making payments for electoral expenditure (through a campaign account where one is required);

• obtaining and keeping full and accurate accounting records of political donations received and electoral expenditure incurred;

• issuing receipts or acknowledgements to people who make reportable political donations;

• lodging disclosures of political donations and electoral expenditure.

Campaign Accounts

Campaign Accounts

Candidates are required to have a campaign account if they intend to:

• receive more than $1,000 in political donations, or

• spend more than $1,000 in electoral expenditure

Campaign Accounts (Cont’d)

The campaign account must:

• be with a financial institution (bank, building society or credit union);

• belong to the candidate;• be separate to any personal accounts;• not be operated by the candidate; and• be closed when the account is no longer required and the

remaining funds are distributed as required by the Act.

The official agent must be authorised to operate the account.

There are no legislative requirements regarding the name of the account.

Campaign Accounts (Cont’d)

The campaign account must be used:

• to deposit all monetary political donations made to or for the benefit of the candidate; and

• to make payments for electoral expenditure incurred by or on behalf of the candidate.

• Where a campaign account is required to be kept, personal funds contributed by the candidate to their campaign must be paid into the campaign account.

Campaign Accounts (Cont’d))

Payments out of a campaign account may only be made:

• for the purposes of electoral expenditure incurred by on or on behalf of the candidate;

• to reimburse a candidate for personal funds paid into the account; and

• to make political donations to other candidates (who are members of the same political party as the candidate who owns the account).

An official agent may, in writing, appoint another person (other than a candidate) to make deposits into and payments from the campaign account.

Political Donations

Political Donations:

• donations (money)

• gifts (non monetary) • provision of services (free or discounted)

• purchase of tickets or other items relating to a fundraising event

• money from the sale of a gift donated to a candidate

• there are no caps on the amounts of political donations with respect to Local Government elections and elected members of councils

Political Donations (Cont’d)

“Small” political donations:

• a single donation of less than $1,000

• a number of donations from the one source in one financial year which, in total, are less than $1,000

• receipt not required to be issued

• must keep records of each donation

“Reportable” political donations:

• a single donation of $1,000 or more

• a number of donations from the one source in one financial year which, in total, are $1,000 or more

• a receipt must be issued

• must keep records of each donation

Prohibited Political DonationsIt is unlawful to accept any donation valued at $1,000or more unless:

• it is made by an individual who is enrolled on the roll of electors for federal, state or local government elections or an entity that has an ABN (or relevant business number), and

• the name and address of the donor are known and provided by the donor, and the person accepting the donation has no grounds to believe the name and address of the donor are not true.

Where an individual is not enrolled, a political donation may be lawfully accepted where the Commissioner has been supplied with acceptable identification of the individual showing the individual’s full name and a residential address in Australia.

Where an entity does not have a relevant business number, a political donation can be lawfully accepted where the Commissioner has been supplied with identification of the principal or executive officer showing their full name and residential address in Australia.

Prohibited Political Donations (Cont’d)

It is unlawful to accept a political donation from the following categories of prohibited donors:

• Property developers – includes close associates

• Tobacco industry business entities – includes close associates

• Liquor and gambling industry business entities – includes close associates

Close associate includes:

• Directors and officers of the corporation or their spouses

• A person whose voting power in the corporation is greater than 20% or the spouse of such a person

Prohibited Political Donations (Cont’d)

It is unlawful to accept any donation “in kind”(whether free or discounted) valued at more than $1,000 in any financial year for:

• Office accommodation

• Vehicles

• Computers

• Office equipment or similar

• Advertising

Electoral Expenditure

Electoral Expenditure

Expenditure for or in connection with promoting or opposing, directly or indirectly, a party or the election of a candidate or candidates or for the purpose of influencing, directly or indirectly, the voting at an election.

Electoral Communication Expenditure (as a subset of electoral expenditure) is electoral expenditure incurred on the following:

• electoral advertising (radio, television, internet, posters and print media)• production and distribution of electoral material• internet, telecommunications, stationery and postage• employing staff engaged in election campaigns• travel, accommodation of candidates and paid staff engaged in electoral

campaigning• office accommodation • research associated with election campaigns• there are no caps on electoral communication expenditure with respect to

Local Government elections

Reporting Periods

Candidates must disclose donations received and electoral expenditure incurred for a specific reporting period.

The reporting period for this election commences:

• on 8 April 2014 (being 12 months prior to the day of nomination for the election); or

• on 9 October 2012 if registered for the 2012 general election; or

• on the thirty first day after election day for any previous by-election the candidate was registered for.

Disclosure

All political donations received and made as well as electoral expenditure incurred is required to be disclosed.

Financial Year Disclosure ending 30 June 2015

• disclosure is the responsibility of the official agent

• disclosures must be lodged by 22 September 2015

• ‘nil’ returns are required

• an audit certificate is required where there is more than $2,500 in political donations or electoral expenditure

Disclosure (Cont’d)

Financial Year Disclosures:

• must detail all political donations received and made, including self funding, electoral expenditure incurred, fund raising ventures and reportable loans

• must include supporting documentation including copies of receipts for donations and invoices/receipts for electoral expenditure as well as all advertising material produced

• disclosures will be published on NSWEC website (not including supporting documentation)

• will be subject to a compliance audit relevant to the provisions of the Act

• significant penalties will be imposed for failure to lodge a valid disclosure

Assistance

Funding, Disclosure and Compliance Branch TELEPHONE

Call Centre support 1300 022 011

EMAILfdc@elections.nsw.gov.au

NSWEC WEBSITEwww.elections.nsw.gov.au