February 11, 2025

Open letter to the federal government from the Stronger Charities Alliance regarding the Electoral Legislation Amendment (Electoral Reform) Bill 2024

Our alliance warmly welcomes the proposed changes to improve transparency of political donations and bring Commonwealth disclosures in line with other jurisdictions. Many members of our alliance have been advocating for these changes for years. However, we are deeply concerned about the speed at which this complex bill is proceeding and the proposal to cap donations to charities for use in electoral advocacy. 

Australian charities play a critical role in our democracy. We conduct independent analyses of candidates' and parties' policies, educate and inform voters, and advocate for changes to strengthen communities and protect the environment.

We bring a unique, non-partisan voice to election debates. During elections, we are the only stakeholders bound by law to pursue public interest objectives and are prohibited from having a purpose of expressly supporting or opposing specific candidates or parties.

But time and again we have found that charities are regulated in a similar manner as candidates and political parties. Insufficient consultation with the charity sector in electoral reform processes results in laws that undermine charities’ capacity to perform a key task as public interest advocates. This is exactly what is happening now with the Electoral Reform Bill. 

Under the proposed electoral reforms, charities cannot incur electoral expenditure using general or un-tied donations, and will be restricted in terms of the types of income that can be used for that purpose. 

This is because the Bill requires that all electoral expenditure come out of a federal account (292FA(1)), and because the only amounts that are allowed to be transmitted to a federal account are gifts for a federal purpose (292FA(4)), with limited exemptions (292FA(5) and (6)).

Charities draw on general or un-tied donations to use in advocacy during election periods. Many, if not most, charities receive donations on the basis that the donation is tax deductible.  For such donations, the donor cannot prescribe strict conditions on the use of the donation, such as requiring it to be used for a federal purpose. 

It is unclear what public benefit comes from restricting charities in the types of income they can use on electoral expenditure. Charities are already heavily regulated. Charities are the only stakeholders bound by law to pursue public interest objectives and are prohibited from having a purpose of expressly supporting or opposing specific candidates or parties. We don’t think restricting the use of general or un-tied donations is in line with the overall policy objectives of the Bill.

We urge you to ensure charities can incur electoral expenditure using all types of income, while subjecting those donations used to incur electoral expenditure to appropriate disclosure requirements and the annual gift cap in accordance with community expectations.

Signatories:

  1. ACOSS
  2. ActionAid Australia
  3. Animals Australia
  4. Animal Liberation
  5. ARRCC (Australian Religious Response to Climate Change)
  6. Asylum Seeker Resource Centre
  7. Asylum Seekers Centre
  8. Australian Alliance for Animals
  9. Amnesty International Australia
  10. Australian Conservation Foundation
  11. Australian Council for International Development
  12. Australian Democracy Network
  13. Australian Marine Conservation Foundation
  14. Australian Youth Climate Coalition
  15. Baptist Care Australia
  16. Barnardos Australia
  17. Buddhist Council of NSW
  18. Climate Action Network Australia
  19. Community Council for Australia
  20. Edmund Rice Centre for Justice and Community Education
  21. FOUR PAWS Australia
  22. Friends of the Earth Australia
  23. Human Rights Law Centre
  24. Humane Society International, Australia
  25. Jewish Climate Network
  26. Justice and Equity Centre
  27. Lock the Gate Alliance
  28. Oxfam Australia
  29. Reichstein Foundation
  30. Sunshine Coast Environment Council
  31. Tearfund Australia
  32. The NonProfit Alliance
  33. The Wilderness Society
  34. Transparency International Australia
  35. The Australian Services Union
  36. UnitingCare Australia
  37. Uniting Church in Australia, Synod of Victoria and Tasmania
  38. Mackay Conservation Group
  39. Mannifera Collective
  40. Queensland Conservation Council