reforming queensland’s electoral...

December 2010

Reforming Queensland’s electoral system

© The State of Queensland (Department of the Premier and Cabinet) 2010.

Published by the Queensland Government, December 2010, 100 George Street, Brisbane Qld 4000

The Queensland Government supports and encourages the dissemination and exchange of information. However, copyright protects this document. The State of Queensland has no objection to this material being reproduced, made available online or electronically but only if it is recognised as the owner of the copyright and this material remains unaltered. Copyright enquiries about this publication should be directed to the Department of the Premier and Cabinet by email to [email protected] or in writing to PO Box 15185, City East Qld 4002.

Copies of this publication can be obtained by contacting (07) 3224 2974 or at www.premiers.qld.gov.au

Cover image by Michael Marston

Reforming Queensland’s electoral system 3

Premier’s foreword .................................................................4

Background ............................................................................5

1 Policy overview ...................................................................6

2 Current Law.........................................................................7

2.1 Constitutional issues ...................................................................7

2.2 Donations and expenditure – the current law at a glance .............7

3 Reforming campaign finance ..............................................9

3.1 A cap on donations ......................................................................9

3.2 Campaign expenditure ...............................................................11

3.3 Public funding ...........................................................................12

3.4 The regulation of third parties ....................................................14

3.5 Sanctions, monitoring and enforcement ....................................15

4 Reforming enrolment ........................................................16

4.1 Automatic enrolment .................................................................16

4.2 Lowering the age for provisional enrolment ................................17

4.3 Enrolment up to the day before polling day ................................17

How to provide comments .....................................................18

Contents

4 Reforming Queensland’s electoral system

Premier’s foreword

Maintaining a strong, vibrant democracy means not standing still.

Over the 150 years since the first Queensland elections, we have continually built on our democratic system to create what we have today.

Holding the election on a single day began in 1902, women received the right to vote in 1905, voting became compulsory in 1914, Indigenous Queenslanders were given the vote in 1965 and the voting age was lowered to 18 in 1973.

These changes illustrate that as democratic systems evolve, the law must stay in step.

Governments are elected to change things for the better, not maintain the status quo.

We have a responsibility to continue to build on our foundations to ensure our electoral system remains one of fairness, transparency and integrity.

We have a responsibility to ensure Queensland’s electoral system is free from undue influences.

We have a responsibility to ensure that running for office is not restricted to the wealthy.

We have a responsibility to ensure every eligible Queenslander is able to vote.

Maintaining a strong, vibrant democracy means not taking our eye off the ball and always striving for improvements.

That’s what this paper is all about – achieving the best electoral system for a modern Queensland, one which all Queenslanders can be proud of today and into the future.

ANNA BLIGH MP PREMIER OF QUEENSLAND


The Queensland Government is committed to a modern electoral system, free from the perception of undue influence, in which all eligible voters have their voice heard.

This includes increasing the transparency of relationships between political parties, candidates and donors.

In 2009, the Government committed to a raft of integrity and accountability reforms for Queensland.

These reforms included a commitment that if the Commonwealth Government did not act to reform political donations by July 2010, the Queensland Government would introduce a cap on political donations.

The Commonwealth has committed to convening a working group to report by October 2011. While national uniformity is desirable, the Queensland Government is not prepared to wait.

New South Wales has recently enacted new campaign finance laws. In the interests of consistency, many aspects of the Queensland model reflect the New South Wales reforms.

In reforming campaign finance, states are restricted in the scope of reforms by constitutional constraints.

The Queensland Government’s campaign finance model seeks to balance the freedom of political communication with the need to achieve a transparent process free from perceptions of undue influence.

The Queensland Government’s model also seeks to encourage participation in our democracy, including ensuring standing for office is not restricted to the wealthy.

It is estimated over 10 percent of eligible voters are not on the electoral roll; that is around 400,000 Queenslanders. It is timely to consider how Queenslanders enrol to vote to ensure all eligible electors are able to have their say.

Background


Reforming campaign finance

The Queensland Government intends to:

• introduce a cap on donations a donor can make per financial year to Queensland political parties and candidates for use in state electoral campaigns

• cap donations to registered political parties at $5000 per donor per year. Donations to elected Members and candidates will be capped at $2000 per donor per year

• cap the amount political parties and candidates can spend on state electoral campaigns

• increase public funding to ensure political parties and candidates are able to fully participate in Queensland’s electoral system

• require political parties and candidates to keep dedicated state electoral campaign accounts, where all donations intended for use in state electoral campaigns must be deposited and from which all state campaign expenditure must be paid

• regulate campaigning by third parties in relation to state electoral campaigns by:

− requiring third parties to register with the Electoral Commission Queensland (ECQ) if they intend to spend more than $10,000 on electoral campaigning during campaign periods (or $2000 in any single electorate)

− capping political donations to third parties that can be used for state electoral campaigning during campaign periods

− capping how much third parties can spend on state electoral campaigning during campaign periods

− requiring third parties to keep dedicated electoral campaign accounts for receiving political donations and incurring expenditure for a state electoral campaign

• provide for the indexation (to the closest round amount) of the donations cap and campaign expenditure cap amount to allow for inflation

• ensure the ECQ is empowered to monitor and enforce the new campaign finance rules.

The model for public funding is set out in the table below.

Local governments

The government will consider adapting this model for local governments.

Reforming enrolment


• provide for automatic enrolment of eligible electors, based on information accessed by the ECQ, where a person has not enrolled within 21 days of turning 18 years old

• lower the age for provisional enrolment from 17 to 16 years of age

• allow eligible electors to enrol to vote up to the day before polling day for state elections, and cast a provisional vote based on their new enrolment.

Implementation

The government intends to implement the donations cap from 1 January 2011. Political parties, elected Members and candidates will only be able to use donations for state campaign purposes if the donations were received:

• prior to 1 January 2011; or

• if the donations were received on or after 1 January 2011, in accordance with the proposed donations cap.

1 Policy overview

Donations cap Public funding – parties Public funding – candidates

$2000 to candidates and $5000 to registered parties

• 100% of actual expenditure within 0-10% of the applicable expenditure cap


• 50% of actual expenditure within 90-100% of the applicable expenditure cap.



• 25% of actual expenditure within 50-100% of the applicable expenditure cap.


2.1 Constitutional issuesThe structure of governance in Australia means that state and federal governments are each responsible for the electoral laws relating to their respective level of government.

Political parties also exist at both state and national levels and can work across state and federal levels of government. Currently, donations given to a party at one level may ultimately be used to fund campaigning at another level.

These factors complicate Queensland’s proposed campaign finance reforms from both a practical and constitutional perspective.

Firstly, state laws that are inconsistent with federal laws may be constitutionally invalid to the extent of the inconsistency. Therefore, if Queensland’s law purported to disallow what federal law allows (for example, large donations to federal branches of parties), the Commonwealth Constitution may invalidate the Queensland law to the extent of the inconsistency.

Secondly, a state law must not threaten the continuing existence of the Commonwealth as a separate constitutional entity with a government and Parliament of elected representatives. State branches of parties raise money for, and assist in, federal electoral campaigns, and any attempt by a state to prohibit or cap donations to state parties outright could be open to challenge as being unconstitutional. This is because the ban or cap would also arguably restrict the ability of the state-registered parties to support candidates in Commonwealth elections.

It is therefore necessary to ensure Queensland’s campaign finance reforms are restricted to state electoral campaign financing only.

Moreover, state and federal governments when considering campaign finance law reform need to ensure they proceed in a manner that does not place an undue burden on the implied freedom of political communication.

2.2 Donations and expenditure – the current law at a glance

The law relating to state elections in Queensland is set out in the Electoral Act 1992 (the Electoral Act). There is currently no restriction on the amount an entity can donate to a registered political party or candidate, or the amount that can be spent during an election campaign. Rather, the emphasis is on requiring disclosure of donations and other monies received and disclosure of electoral expenditure.

2.2.1 DonationsDonors

The Electoral Act currently provides that:

• Donors must disclose the details of ‘gifts’ made where the value of one or more gifts is $1000 or greater.

• Donors are required to provide the ECQ with a return showing such gifts made to a candidate or registered political party.

• Returns relating to donations to candidates must be lodged within 15 weeks of polling day. Returns relating to donations to political parties must be lodged every six months.

Candidates


• Candidates are required to lodge a return stating the total value of all gifts received and the number of donors within 15 weeks of polling day.

• Candidates must disclose the value, the date of receipt and name and address of the donor, of all gifts from a single source of, or totalling, $1000 or more.

• Candidates are forbidden from receiving anonymous donations of $1000 or more.

• Candidates are forbidden from receiving gifts of foreign property.

• Candidates who receive gifts must notify the donor of the donor’s duty to disclose.

• Loans made to the candidate, other than those made by a financial institution on commercial terms, must be disclosed with the total value of all loans and the number of persons who granted the loans being provided.

Political parties


• Registered political parties must report every six months on all amounts received, expenditure incurred and outstanding debts as at the end of the reporting period within eight weeks after the end of each reporting period.

• Political parties must disclose the value, the date of receipt and name and address of the donor of all gifts of or totalling $1000 or more.

• Political parties are forbidden from receiving anonymous donations of $1000 or more.

• Political parties are forbidden from receiving gifts of foreign property.

• Political parties which receive gifts must notify the donor of the donor’s duty to disclose.

2 Current Law


• Gifts made to a political party or associated entity by a single donor, and which total $100,000 or more within a six month reporting period, must be disclosed by the donor and the party/associated entity within 14 days of the total amount donated reaching $100,000.

Associated entities


• Associated entities are entities that are controlled by, or that operate wholly or to a significant extent for the benefit of, one or more registered political parties.

• Associated entities must lodge returns that comply with all the reporting obligations required of political parties.

• In addition to this, associated entities must report on all external contributions to their capital.

Third parties


• Third parties are persons or organisations – other than registered political parties, associated entities or candidates – that incur expenditure for a political purpose.

• Third parties are required to lodge returns of gifts received if, during the disclosure period: they incurred expenditure for a political purpose of $1000 or more; gifts of $1000 or more were received; and those gifts were used wholly or in part to fund expenditure for a political purpose.

• The return must be lodged within 15 weeks of polling day and must state the relevant details of all gifts of $1000 or more which were used, wholly or in part, to incur expenditure for a political purpose.

2.2.2 ExpenditureThe Electoral Act provides that electoral expenditure is expenditure incurred (whether or not incurred during the election period) on the broadcasting, publishing (in a journal or on the internet), or display in a theatre, of an advertisement relating to the election during the election period. It also captures the costs incurred in the production of such an advertisement, the production and distribution of electoral material and the carrying out of an opinion poll or other research relating to the election.

While there are currently no limits on the amount that candidates, parties and third parties can spend during a political campaign, the law sets down a number of disclosure requirements.

Candidates

Candidates must lodge returns with the ECQ stating the detail of electoral expenditure within 15 weeks of polling day.

Political parties and associated entities

Registered political parties and associated entities that spend more than $1000 in a reporting period must lodge

a return providing the relevant details of all expenditure incurred including the name and address of the person or association to whom the money was paid.

The return must be lodged within eight weeks of the reporting period.

Third parties

Third parties that incur electoral expenditure of a value greater than $200 must lodge a return stating the details of the electoral expenditure within 15 weeks after polling day.

Broadcasters

Broadcasters must lodge a return showing details of all electoral advertisements broadcast within eight weeks after polling day.

Publishers

Publishers must lodge a return providing the relevant details of all electoral advertisements published within eight weeks of polling day if the total amount of charges for advertising relating to the election was $1000 or more.


3.1 A cap on donationsThe Queensland Government intends to introduce a cap on political donations to ensure access to the political process cannot be bought.


• introduce a cap on donations of $5000 per donor per year to Queensland political parties and $2000 per donor per year to candidates for use in state campaigns

• require political parties and candidates to keep dedicated state electoral campaign accounts, from which all campaign expenditure must be paid.

Donors and the political parties, candidates and third parties who receive political donations are currently required to disclose details of donations of $1000 or more, which the Electoral Act refers to as ‘gifts’.

The definition of ‘gift’ captures ‘any disposition of property’ made without consideration or inadequate consideration, meaning the giving of goods without payment of the full value in return. It includes providing a service for no payment or inadequate payment (excepting volunteer

labour) but does not include gifts made by will, public election funding or annual party membership fees.

Existing provisions that will be retained

There are also important existing measures in the Electoral Act that ensure the feasibility and integrity of the electoral system which the government will retain.

These include the:

• exclusion of volunteer labour from what constitutes a donation

• treatment of related companies and other bodies corporate as single donors for the purposes of the donations cap

• prohibition on gifts of foreign property.

3.1.1 The cap and how it will operateDonors (individuals and organisations, such as corporations and unions) will be permitted to donate a maximum amount per financial year to political parties and candidates for use in state electoral campaigns. It will be a global, cumulative cap.

Therefore, under the donations cap of $2000 per year to candidates, a donor may donate $500 to candidate A, $1000 to candidate B and $500 to candidate C, but the donor may not make any additional donations to candidates

To ensure the definition of donations/gifts is relevant and that appropriate items are captured by the donations cap, the Queensland Government intends to:

• ensure the legislation continues to treat in-kind gifts as political donations for the purposes of the cap

• ensure fundraising activities are captured by the donations cap by:

− providing that any amount paid for attendance fees or raffle tickets, for a single event or raffle, over $200 is counted as a donation

− providing that fundraising activities, such as event attendance fees and raffle tickets, of $200 or less will not be counted towards the donations cap

• include in the political donations cap party memberships over $500 per year (payment of party memberships up to $500 per year would be disregarded for the purposes of the cap)

• provide that affiliation fees cannot be used to fund campaign expenditure

• ensure loans made on a non-commercial basis are treated as donations and subjected to the donations cap

• treat the transfer of funds from related parties (that is federal or interstate parties or branches of the party) to a Queensland political party’s state campaign account as a donation subject to the cap (any such transfers exceeding the donations cap may not be used for state campaign purposes)

• ensure that any donation made to a person (a third party intermediary) on the understanding that the person will forward the donation on to, or use the donation for the benefit of, a political party or candidate is treated as a donation by both the originating donor and the third party intermediary

• exclude from the donations cap the disposition of property to political parties or candidates by will

• provide that a candidate may contribute their own personal funds to their campaign account without being subject to the donations cap and a Member of Parliament may contribute personal funds to the political party they represent.

3 Reforming campaign finance


for state campaign purposes thereafter. Donors will also have a separate cap of $5000 for donations to registered political parties.

Donors will be required to elect, at the time of making a donation, whether the money is for state campaign purposes.

The laws will not discourage grass roots supporters from giving their time to political parties through volunteer labour. Nor will the laws discourage parties from trying to gather smaller financial contributions from a larger supporter base.

The donations cap amount will be indexed, so it will increase incrementally over time. The formula for indexation will include adjustment for inflation but will ensure that the cap remains a round amount.

Corporations and other bodies corporate that are related to each other (for example, parent companies and subsidiaries and branches of the same union) will be treated as a single donor for the purposes of the cap.

The donations cap will have express extra-territorial effect. The regime will extend to donors in other Australian jurisdictions donating to Queensland registered political parties and candidates for Queensland state campaign purposes.

3.1.2 Dedicated state campaign accountsGiven the constitutional impediments outlined earlier in this paper, to ensure the donations cap does not impede parties’ ability to campaign at a Commonwealth level, the Queensland Government intends to require Queensland registered political parties and candidates (including independent candidates) to keep dedicated state campaign accounts.

The cap on political donations will only apply to donations received for state electoral purposes. Parties and candidates will only be allowed to accept a donation exceeding the donations cap if the donation (or the part of the donation exceeding the cap) is paid into an account maintained by the party for its general administration (usable, for example, for federal rather than state campaigns).

Registered political parties and candidates will be prohibited from using money from their general administration accounts for state electoral campaign purposes.

Parties will be required to reimburse donors for any ‘in-kind’ contribution given for expressly stated electoral campaign purposes that exceeds the cap. This is because the monetary equivalent of the ‘in-kind’ contribution cannot be transferred into the party’s administration account, as distinct from its state campaign account.

Any amounts received by political parties (regardless of its receipt in the party’s state campaign account or administration account) will remain subject to disclosure requirements.

Requiring dedicated state campaign accounts will also contribute to the transparency of the new regime and accountability of parties, enabling the ECQ to monitor the

donations received by parties and claims for reimbursement for electoral expenditure.

3.1.3 Disclosure requirementsPolitical parties and associated entities will continue to be required to lodge six monthly returns including:

• the amount and source of each donation greater than $1000

• the total amount of money raised through donations of $1000 or less.

Candidates and third parties will still be required to lodge a return following an election.

Donors will continue to be required to lodge a return if their donations in a six-month reporting period total more than $1000.

It will remain an offence to:

• fail to give a required return to the ECQ

• give an incomplete return

• give a return that the person knows is false or misleading; or

• fail to keep required records.

3.1.4 What is a donation?3.1.4.1 Returns on commercial investments

Parties may raise money through investments including investments made by their associated entities. It cannot be considered that returns on investments made with the parties’ own capital could give rise to any perception of undue influence. In most instances returns on investment will therefore not be included in the donations cap.

However the government will put in place measures to ensure investment vehicles cannot be used to circumvent the cap.

3.1.4.2 Party memberships and organisational affiliation fees

Being a member of a political party is one of the most fundamental forms of direct political expression.

The government intends to provide that individual party membership fees of $500 or less per financial year are excluded from the donations cap.

Membership fees over $500 will be treated as a donation and therefore donors will be required to elect, at the time of making a donation, whether the money may be used for state campaign purposes.

Affiliation and organisational membership fees will not be captured by the donations cap, however such fees cannot be used for a state campaign. Administratively, these fees will be required to be received by parties into their administration accounts (and be required to be disclosed as affiliation and organisational membership fees in parties’ returns).

Compulsory levies on Members of Parliament imposed by a political party will also be exempted from the cap.


3.1.4.3 Loans

The government intends to clarify that non-commercial loans constitute donations (to the extent they are not provided on a commercially competitive basis).

3.1.4.4 Gifts-in-kind

‘Gifts’ are defined in the Electoral Act to include “the provision of a service (other than volunteer labour) for no consideration or for inadequate consideration”.

The government intends to clarify that the definition of ‘gift’ includes in-kind support of quantifiable financial value (excluding volunteer labour) and that in-kind gifts for state campaign purposes are subject to the proposed donations cap. In effect, this will prohibit the provision for state campaign purposes of items (worth more than the cap amount) such as: travel in a private aircraft, accommodation, function rooms, food, alcohol, vehicles, IT, advertising production services and memorabilia or goods for use as raffle prizes.

The government also intends to ensure that the cap on donations will apply to a person paying the state campaign expenses of a party, candidate or associated entity on their behalf. In addition, the government intends to provide that an unpaid debt for state electoral expenditure that remains unpaid 18 months after the return of the writs is deemed to be a donation, unless the party or candidate is making regular reasonable repayments or has entered into an agreement for the repayment of the debt.

The Australian Electoral Commission describes gifts-in-kind as “goods, assets or services for which no payment (in cash or in kind) or a payment of less than true value is made”. The Australian Electoral Commission’s July 2010 Funding and Disclosure Guide – For Election Donors provides that “‘gifts-in-kind’ are normally disclosed at the commercial or sale value of the item or service as evidenced by arms-length quotations, comparative advertisements or expert assessment”.

The government intends to request the ECQ issue guidelines about what constitutes ‘gifts-in-kind’ and how they should be valued.

3.1.4.5 Fundraising activities

Regulation of fundraising activities is complex because, while at least part of the amount paid is for a tangible return (for example receipt of a dinner and wine, a chance to win a prize, acquiring an item), arguably, some component of the amount paid is a gift or donation.

Given the difficulties in determining which portions of ticket prices for functions or raffles should be counted as adequate or inadequate consideration, the definition of political donation will apply where the ticket price of a single event is greater than $200. If the ticket price for the function is greater than $200, any amount over $200 will be a donation. Therefore donors will be required to elect, at the time of making the donation, whether the money is for a state campaign purpose.

Similarly, if a donor spends more than $200 on raffle tickets or similar (for example silver circle) in a single raffle, the amount over $200 will be a donation.

3.2 Campaign expenditureTo complement the cap on political donations, the Queensland Government intends to cap campaign expenditure for political parties and candidates during a state electoral campaign. This will reduce reliance of political parties and candidates on donations to contest elections.

The Electoral Act currently defines ‘electoral expenditure’ to capture a broad range of items of expenditure, for example broadcasting, publication and display of advertisements relating to the election, as well as the carrying out of opinion polls or other research relating to the election.


• Introduce a cap on expenditure of political parties and candidates during a state electoral campaign:

− a cap for political parties of $80,000 per seat being contested for state-wide campaign expenditure

− a cap for candidates of $50,000 per seat which can only be used for campaign expenditure in that specific electorate

− a cap for independent candidates of $75,000 (the electorate cap plus an additional 50 per cent).

• Continue to require that candidates disclose their campaign expenditure.

The total expenditure limit for a party contesting all 89 seats, and their candidates, would therefore be approximately $11.5 million.

The cap will apply from six months prior to the latest possible date for an election or the issuing of the writs, whichever comes first, to the end of polling day for the election.

Material used during the cap period primarily for state electoral campaign purposes will be subject to the cap, regardless of whether payment is made during the cap period.

3.2.1 The level of the campaign expenditure capThe level that the campaign expenditure cap is set at is important as imposing too low a level will have a negative impact on freedom of political communication. Conversely, imposing a cap that is too high will render the cap meaningless.

There will be both a state-wide cap and an electorate specific cap. This is in recognition of the fact that political


parties conduct electoral campaigns across Queensland and are not isolated to single electorates.

State-wide campaign expenditure will be capped at $80,000 per seat being contested in a state election. Political parties will be able to decide how and where the expenditure is incurred within the specified limits, that is, expenditure can be incurred state-wide or in individual electorates, on communicating party information or information relating to certain candidates.

In relation to the electorate-specific cap, a cap of $50,000 per seat will apply. The candidate and the political party endorsing them will be permitted to spend the capped amount in their electorate only and any unspent portion cannot be transferred to increase the expenditure limit for the political party endorsing the candidate or transferred to a candidate in another electorate, in order to maintain parity between candidates.

Independent candidates will be subject to the electorate cap, plus an additional 50 per cent (of the $50,000 cap) to take account of the fact that independent candidates do not have access to a party structure.

For a by-election, a candidate and the political party endorsing them will also be subject to the independent candidate cap.

These amounts will be indexed and updated periodically (to the closest round amount). The government will consider the most appropriate formula for indexation.

3.2.2 The timing of the application of expenditure capsThe cap on electoral expenditure will apply for six months prior to the latest possible date for an election or from the issuing of the writs, whichever comes first, to the end of polling day for the election.

Material primarily for state electoral purposes used during the election campaign period will be subject to the cap, even if payment is made prior to the beginning of the campaign period.

For a by-election, the campaign period will apply from the issuing of the writs, to the end of polling day for the by-election.

3.2.3 Expenditure disclosure requirementsIn order to monitor adherence to the expenditure cap, the current disclosure requirements in the Electoral Act will continue to apply. That is, candidates will continue to be required to lodge returns detailing expenditure on goods used and services rendered during the election period on ‘electoral expenditure’ (as defined in the Electoral Act) within 15 weeks of polling day.

3.3 Public fundingA cap on political donations for state electoral campaigns will reduce the amount of funds that political parties and candidates have to spend on informing the public during campaigns. In order to ensure that political parties and candidates can properly participate in the electoral process, it is important that they are adequately funded to do so.

Accordingly, the government intends to increase public funding to political parties to help offset the restrictions imposed by the donations cap, and ensure that parties and candidates are able to effectively conduct state electoral campaigns.

The Electoral Act provides that “a registered political party is entitled to election funding for all elections held on the same day if, in relation to a candidate whom the party endorses in an election, the total number of formal first preference votes given for the candidate is at least four per cent of the total number of formal first preference votes cast in the election.”

The amount of funding to which a registered political party is currently entitled is the lesser of:

• the amount calculated by multiplying the total of eligible votes received by the election funding rate indexed annually (currently $1.64455 for 2010/11); or

• the amount of electoral expenditure claimed (and accepted by the ECQ).

Independent candidates who gain at least four per cent of the formal first preference vote may also claim reimbursement of their campaign costs up to the level of their entitlement.

Claims for election funding are to be made within 20 weeks of an election, or within another time fixed by the ECQ.

3.3.1 Amount of public funding for electionsThe aim of public funding is to ensure the viability of the electoral system.

In jurisdictions where donations are restricted, such as New South Wales and the United States of America, there is generally a corresponding increase in the entitlement to public funding.

The government also intends to increase the amount of public funding provided to political parties and candidates for state campaign purposes.

The government intends to also:

• Maintain the eligibility threshold, that is, parties and candidates will be eligible for public funding if they receive four per cent of formal first preference votes in an election.

• Require that claims for public funding be lodged with the ECQ within 20 weeks after polling day.

• Retain a reimbursement scheme based on the actual expenditure of the party/candidate. The method for calculating the level of public funding is set out in the table on page 6.


3.3.1.1 Proposed public funding in practice

Party

A registered political party which fields a candidate in each of Queensland’s 89 electorates will be entitled to spend a maximum of $7.12 million and would be entitled to a maximum reimbursement of $5.340 million.

Proposed public funding model

Under the proposed expenditure cap this means reimbursement of

Maximum possible reimbursement

100% of actual expenditure within 0-10% of the applicable expenditure cap

100% of expenditure up to $0.712M

Up to $0.712M


$0.712M plus 75% of any expenditure between $0.712M and $6.408M

Up to $4.984M


$4.984M plus 50% of any expenditure between $6.408M and $7.120M

Up to $5.340M maximum reimbursement

Endorsed candidate

An endorsed candidate will be entitled to spend a maximum of $50,000 and would be entitled to a maximum reimbursement of $21,250.





100% of expenditure up to $5000

Up to $5000


$5000 plus 50% of expenditure between $5000 and $25,000

Up to $15,000


$15,000 plus 25% of expenditure between $25,000 and $50,000

Up to $21,250 maximum reimbursement

Independent candidate

An independent candidate will be entitled to spend a maximum of $75,000 and would be entitled to a maximum reimbursement of $31,875.





100% of expenditure up to $7500

Up to $7500


$7500 plus 50% of expenditure between $7500 and $37,500

Up to $22,500


$22,500 plus 25% of expenditure between $37,500 and $75,000

Up to $31,875 maximum reimbursement

3.3.2 Advance payment of public fundingRegistered political parties and candidates (including independent candidates) will be eligible for an advance payment of public funding of up to 50 per cent of their public funding amount based on the last election at the beginning of the campaign period upon request.

Should the party’s or candidate’s entitlement to public funding following the election be less than the advance amount paid, they will be required to reimburse the difference to ECQ.

3.3.3 Administrative funding for political partiesIt is also proposed that registered political parties receive a regular amount of administrative funding to further reduce their reliance on donations.

This funding would be provided on a six monthly basis, based on the number of elected Members the party has in Parliament.

Parties will be provided the lesser of $1 million (state-wide) or $40,000 per elected Member every six months if they received at least four per cent of the formal first preference votes at the last state election.

Independent Members will be reimbursed every 6 months for actual administrative expenditure, up to $20,000.

This funding could not be deposited into the state campaign account.


3.4 The regulation of third partiesThe Queensland Government intends to apply a cap on political donations to third parties, as well as a cap on how much third parties can spend on state electoral campaigning during campaign periods.

Third parties are people or organisations – other than registered political parties, associated entities or candidates – who incur expenditure for a ‘political purpose’, as defined in the Electoral Act.

Third party interest groups play an important role in our democracy. Their contribution ensures that the interests of various sectors within the community are represented in public debate. Further, third parties help to broaden the range of perspectives in circulation on significant issues beyond platforms of political parties. However, the absence of a political donation and expenditure cap for third parties would mean that the restrictions placed on candidates and political parties could easily be circumvented by the establishment of outside bodies to make unregulated expenditure.


• introduce a cap on expenditure of third parties during a state election campaign of $500,000 statewide, or $75,000 in a single electorate

• require that third parties register with the ECQ where they spend over $10,000 on electoral expenditure for a state electoral campaign (or $2000 in any single electorate)

• require disclosure by third parties of campaign expenditure

• cap political donations to third parties at $2000 per donor per year for state electoral campaign purposes

• require that third parties keep a dedicated state electoral campaign account for receiving political donations and incurring expenditure for a state campaign purpose.

3.4.1 Expenditure caps on third parties3.4.1.1 The level and timing of expenditure caps

Limiting the expenditure of third parties on political advertising during election campaigns could potentially prevent third parties from raising legitimate political issues and concerns during an election campaign. The level of any expenditure cap should therefore be carefully considered to ensure that third parties’ ability to freely communicate with the public on political issues is not unduly hindered.

There will be no regulation of third party campaigning outside the campaign period. To maintain consistency and ensure fairness, the timing of the cap for third parties will be the same as that which applies to candidates and political parties, that is, six months prior to the latest possible date for

an election or the issuing of the writs, whichever comes first, to the end of polling day for the election.


• introduce a cap on expenditure of third parties during a state election campaign of $500,000 state-wide, including no more than $75,000 in a single electorate

• apply the cap on electoral expenditure for six months prior to the latest possible date for an election, or the issuing of the writs, whichever comes first, to the end of polling day for the election.

3.4.1.2 Types of expenditure to be caught

Given that third parties must still have the ability to communicate with the community regarding legitimate political issues and concerns during a state election campaign, the government will consider the definition of electoral expenditure to apply to third parties to ensure it is appropriate.

3.4.1.3 Reporting, registration and disclosure requirements for third parties

Imposing requirements on third parties to register, disclose and report on campaign expenditure is a means to monitor and enforce third party spending.

It is proposed that any organisation or individual, who is not a registered political party or candidate, intending to spend more than $10,000 on political advertising state-wide, or more than $2000 in a single electorate, during the campaign period will be required to register with the ECQ before incurring the expenditure. Registration will be able to take place up until polling day. It will be an offence for unregistered third parties to incur electoral expenditure above these caps during a campaign.

The existing disclosure requirements in relation to third parties will continue to apply, that is, third parties who incur electoral expenditure of a value greater than $200 must lodge a return stating the details of the electoral expenditure within 15 weeks after polling day.


• require third parties to register with the ECQ where they spend above $10,000 state-wide (or $2000 in any single electorate)

• introduce an offence for unregistered third parties to incur electoral expenditure above $10,000 state-wide, or $2000 in a single electorate, during a campaign

• continue to require that third parties disclose their campaign expenditure.


3.4.2 Donations to third partiesCurrently, if expenditure for a political purpose of $1000 or more was incurred; and gifts of $1000 or more were received; and those gifts were used wholly or in part to fund the electoral expenditure, then third parties must give to the ECQ a return showing details. Third parties must also provide a return of electoral expenditure (if $200 or more was incurred on ‘electoral expenditure’).

If donations to third parties are not regulated there is a significant potential loophole for donors to give large sums to third parties to enable them to run parallel campaigns during an election period. Donations to third parties for use in campaigns will therefore be limited, but will be balanced against the need to protect the constitutional freedom of political expression because third parties often have legitimate concerns about particular issues and the outcome of elections.

Where a registered third party intends to use donations to incur electoral expenditure during the campaign period, they must establish a nominated ‘state campaign account’. Expenditure on a state electoral campaign must be drawn solely from this account.

No more than the donations cap amount from any single donor may be deposited into the nominated account. As with political donations, the donor must expressly nominate that the donation is for state electoral purposes; otherwise, the donation may not be deposited into the state campaign account. However, the third party may transfer other funds into the nominated account to incur electoral expenditure during the campaign period, provided the third party is able to demonstrate the funds had not been raised via donations and provided the overall expenditure cap is adhered to.

The cap on political donations to third parties is separate to the global cap to political parties and candidates. That is, donors will be able to donate up to the donations cap ($2000) separately to a third party/third parties and up to the donations cap to political parties ($5000) and candidates ($2000) per year.


• require registered third parties to establish separate campaign expenditure accounts, into which all donations for state electoral campaign purposes must be placed and from which all expenditure on state electoral campaigning must be drawn

• legislate to place a cap on donations to third parties for use in state electoral campaigns

• ensure that donors are required to nominate that a donation to a third party is for political use during a state campaign before the third party can place it in its campaign account.

3.5 Sanctions, monitoring and enforcement The Queensland Government intends to implement a suite of offences to ensure compliance with the new cap on political donations, as well as the cap on campaign expenditure.

These will include offences related to breaching the donations cap in relation to state elections, for example by:

• knowingly accepting donations in excess of the donations cap (for candidates and political parties)

• accepting a single donation in excess of the donations cap (for candidates and political parties)

• making a donation in breach of the donations cap (for donors)

• accepting an anonymous donation of more than $200 (for candidates and political parties)

• exceeding the campaign expenditure limit for a state electoral campaign or by-election campaign

• making payments for state campaign expenditure from accounts other than state campaign accounts

• failing to provide required information to the ECQ.

Third parties will also face offences for breaching the donations cap and the third party expenditure cap.

The Queensland Government also intends to provide necessary powers to the ECQ to properly enforce the political donations cap and cap on campaign expenditure and to take appropriate action in cases of breach.

Currently the Electoral Act provides a range of offences and penalties relating to the existing disclosure regime. By way of example, failing to give a required return is punishable by 100 penalty units (for an agent of a registered political party), or 20 penalty units (otherwise). Providing a false or misleading return is punishable by 200 penalty units (if given by an agent of a registered political party), 100 penalty units (if by an agent of a candidate), or 50 penalty units (otherwise).

Offences and penalties relating to the new electoral finance regime will be considered in light of existing penalties to ensure they are commensurate with the conduct in question and ensure compliance with the law.

The Queensland Government also intends to ensure that the ECQ is able to support its additional workload resulting from these reforms.

It is also proposed to require parties and candidates to have their state campaign accounts independently audited (where not unduly onerous for candidates or smaller parties) and provide the ECQ access to the accounts. This will assist the ECQ in monitoring donations received by candidates and parties and ensuring compliance with the caps.


Voting is a fundamental right afforded to adults in a democracy. Exercising this right gives each and every Queenslander a voice and an ability to shape the state we live in.

Not all eligible electors in Queensland are enrolled to vote. In particular, electoral participation rates for young people aged 18-25 years are significantly lower than for the rest of the population.

The Commonwealth Green Paper Strengthening Australia’s Democracy (September 2009) reported that the number of enrolments on the electoral roll is not keeping up with the increases in the estimated eligible population since the 2001 election and that since the 2007 election, the enrolment rate has fallen.

In 2008, Queensland’s Electoral Commissioner estimated there were 390,000 eligible Queenslanders who were not on the electoral roll, equating to over 10 per cent of eligible voters.

The Electoral Commissioner went on to state that in the 18 to 25 year age group about 50,000 young people reach enrolment age each year in Queensland, but only about 25 to 30 per cent of them enrol when they are first eligible.

4.1 Automatic enrolment

To increase participation rates in state and local government elections and make it easier for those entitled to enrol to do so, the Queensland Government intends to introduce automatic enrolment for young people who do not provisionally enrol and do not enrol within 21 days of turning 18 years of age.

Individuals who the ECQ proposes to automatically enrol will be given the opportunity to correct any errors in their proposed enrolment details or to raise any objections before they are enrolled by the ECQ.

Other jurisdictions

To address this problem, New South Wales enacted the Parliamentary Electorates and Elections Amendment (Automatic Enrolment) Act 2009 and Victoria enacted the Electoral Amendment (Electoral Participation) Act 2010 to enable automatic enrolment.

The Electoral Amendment (Electoral Participation) Act 2010 (Vic) currently enables the Victorian Electoral Commission to automatically enrol young people who were eligible for provisional enrolment but did not enrol before they reached 18 years of age.

In New South Wales, automatic enrolment extends to all persons who are not enrolled who are entitled to be enrolled. The New South Wales Electoral Commission is also empowered to automatically enrol a person in their correct district if the Commissioner believes that the person is incorrectly enrolled for a district.

How will automatic enrolment work?

The government intends to amend the Electoral Act to enable the ECQ, on its own initiative based on information it already has access to under the Electoral Act, to enrol an eligible elector for an electoral district if the ECQ believes the person was entitled to provisional enrolment but did not provisionally enrol by the time the person reached 18 years of age.

If the person has not enrolled within 21 days of turning 18 years of age, the ECQ may automatically enrol the person.

Before registering the person the ECQ must notify the person in writing:

• that the ECQ believes that the person should be enrolled for a particular district; and

• that the ECQ will enrol the person for that district unless within the period specified in the notice (not less than 14 days) the person notifies the ECQ:

− why they believe they are not entitled to be enrolled for an electoral district and the reasons why; and

− if any details of the proposed enrolment are incorrect.

4.1.1 Entitlement to enrolment The ECQ must consider whether the reason given for why the person believes they are not entitled to be enrolled is valid. If the reason given is valid, the ECQ must notify the person that they will not be enrolled for an electoral district.

If ECQ considers that the reason given is not valid, the ECQ must enrol the person for the electoral district and provide written notification to the person that they have been enrolled for the electoral district and reasons why the ECQ decided that the reason given was invalid.

4.1.2 Incorrect enrolment details If the ECQ receives notice within the period specified in the notice that the details of the proposed enrolment are incorrect, the ECQ may correct any errors and then enrol the person for an electoral district and advise the person in writing that the person has been enrolled for an electoral district.

4 Reforming enrolment


4.1.3 No notification by personIf no notification is made by the person within the period specified in the notice, or if a response is received but the ECQ still believes the person is entitled to be enrolled for the district, the ECQ must:

• enrol the person for the district; and

• notify the person in writing that he or she has been enrolled for that district.

The names of any electors automatically enrolled may not be added to the electoral roll between the end of the cut-off day for electoral rolls for an election or referendum until the end of the polling day for the election or referendum.

Any elector that is automatically enrolled in Queensland will still need to formally enrol for Commonwealth elections, consistent with the new arrangements in New South Wales and Victoria.

As a consequence of the automatic enrolment amendments, responsibility for the preparation of rolls for state and local government elections in Queensland will be assigned to the ECQ instead of the Commonwealth.

4.2 Lowering the age for provisional enrolment

The Queensland Government intends to amend the Electoral Act to allow 16 year olds to provisionally enrol to vote.

Currently the Electoral Act allows a person who is 17 years old to provisionally enrol to vote. Upon the person’s 18th birthday, their provisional enrolment automatically becomes full enrolment.

Provisional enrolment enables the ECQ to register young people earlier, in preparation for when they are able to vote.

The proposed amendment will enable the ECQ to better target young people in its enrolment promotional activities, particularly in schools because a greater number of 16 year olds than 17 year olds are in full-time study.

An amendment to lower the age of provisional enrolment in Queensland to 16 years will also ensure consistency with the Commonwealth electoral roll arrangements. At the Commonwealth level, the Electoral and Referendum Amendment (Modernisation and Other Measures) Act 2010 lowered the age of provisional enrolment in the Commonwealth Electoral Act 1918 to capture 16 year olds and increase voter participation by young people.

4.3 Enrolment up to the day before polling day

The Queensland Government intends to amend the Electoral Act to allow eligible electors to enrol or update their details after the writs for an election have been issued and up to the day before polling day.

The cut-off for the official election roll will not change. The ECQ can accept enrolments and transfers at any time but the authorised copy of the roll at the polling place only contains the names of persons who were enrolled as at the date of the writ.

The proposed amendments will allow a person who has enrolled or updated their details after the writs for an election have been issued, and up to the day before polling day, to cast a provisional vote (in the form of a declaration vote), based on their up to date details.

Any updates to enrolment or new enrolments will be added to the rolls once the election or referendum polling day ends.


Copies of this paper are available on the Department of the Premier and Cabinet website www.premiers.qld.gov.au or you may contact the department to obtain a copy on (07) 3224 2974.

Comments on the Queensland Government’s model can be provided via email at [email protected] or sent to:

Reforming Queensland’s electoral system Department of the Premier and Cabinet PO Box 15185 City East Brisbane Qld 4002 Fax: (07) 3222 2804

The closing date for comments is 18 February 2011.

Comments may be published by the Department of the Premier and Cabinet. If you do not want your comments to be made public, please clearly indicate that it is being provided on a confidential basis.

If you require further information you may contact the Department of the Premier and Cabinet via email at [email protected] or by telephone on (07) 3224 2974.

How to provide comments

www.qld.gov.au DPC

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