Financial Disclosure Guide for Donors to Political Parties

Updated: 6 July 2016

Information to be disclosed in the donor to political party disclosure return

The Donor to Political Party Disclosure Return–Individuals/Organisations

The Donor to Political Party Disclosure Return forms for individuals and for organisations are generally the same. The main difference between the two return forms is that the Donor to Political Party Disclosure Return–Organisations contains an additional section (discussed immediately below).

Part 1a: Other business names

In Part 1a of the Donor to Political Party Disclosure Return–Organisations, the organisation is asked to list alternative names under which it conducts business.

Part 1b: Related bodies corporate

Section 287(6) of the Act provides that a body corporate and any other body corporate that is related to the first-mentioned body corporate shall be deemed to be the same person. It further states that whether a body corporate is related to another body corporate shall be determined in the same manner as the question whether a corporation is related to another corporation under the Corporations Act 2001. The parent company of the group, therefore, should lodge under its name a return consolidated across the entire group and list in this part of the return the names of all related bodies corporate.

Donations made


Section 305B(3) of the Act requires that where a person makes donations totalling more than $13 000 to the same political party during the 2015–2016 financial year, each donation made must be disclosed.

Where an individual makes donations to a political party, the disclosure threshold applies to the total of all donations made. That is, where the total of all donations made to a political party exceeds the disclosure threshold, all donations made to that political party, regardless of their value, must be disclosed in the 'donations made' part of the return.

For example – keeping in mind the disclosure threshold is for donations totalling more than $13 000:

  • A donor makes three separate donations of $5 000 to a political party on different days. The total amount of the donations made to that political party is $15 000. Even though the individual donations made are below the disclosure threshold, the donor is required to disclose details for each individual donation made to the party.

Where an individual or organisation is required to disclose 'donations made' in the return, the following details must be disclosed:

  • Name, party code1, and the address of the political party to which the donation was made.
  • The date each donation was made.
  • The value of each donation made.

Special Issues

Attendance at political party functions

The issue of whether a payment to attend a function constitutes a donation requiring disclosure under the disclosure scheme is not always clear.

As a guideline:

  • If a person made a payment for attendance at a political party function or conference and they did not receive services equal to the value of the payment, the payment is considered a donation.
  • Payment for attendance at a political party function, conference or luncheon for commercial reasons, including the opportunity to engage with members of parliament and senior party officials, may not be considered a donation if the commercial value or benefit of attending is equal to or exceeds the amount paid.
  • Payment for attendance at a function with the intention of contributing to the political party, (that is, where the function is primarily a fundraiser), or where the amount paid is in excess of the value of the function, is a donation and is required to be disclosed.

Donations 'indirectly' made to a registered political party


Section 305B(2) requires that a person who makes a donation to any person or body with the intention of benefiting a particular political party, the person is taken to have made that donation directly to the political party and the donation must be disclosed.

Examples of 'indirect' donations to a political party include, but are not limited to, the following:

  • Payments to a person or organisation (for example an associated entity of a political party) on the understanding that the money or benefit will be passed to a political party or will be used to support the activities of a political party.
  • Payments to a person or organisation on the understanding that the money will be used to pay a debt of a political party.
  • A payment made for services that were for the benefit of a political party (such as political advertising, legal costs or repayment of a loan) is a donation to the political party.
  • Where a payment for services is made and any other donations are also made to a political party, and the total of the amounts paid exceeds the disclosure threshold, both the payment for services and all donations must be disclosed.

Items that do not need to be disclosed as donations:

  • commercial discounts provided in the normal course of business
  • volunteer labour, such as persons handing out how-to-vote cards
  • interviews and news items published in a newspaper or broadcast in the electronic media.

Advertising

While donations of advertising must be disclosed, interviews granted in the normal course of political activity do not need to be disclosed.

Material presented on an 'advertorial' basis (that is a combination of paid advertising and interviews) should be disclosed consistent with the promotional intention of the activity.

Donations to several parties

Donations made to two or more political parties are to be listed on the one return.

The following examples may assist in clarifying some common issues where multiple donations are concerned:

  • A person made several donations totalling $12 000 to one political party (the first party), and two donations of $8 000 each to another political party (the second party). The donations to the first party are not required to be disclosed as they total to less than the disclosure threshold. However, the two donations made to the second party are required to be disclosed, as they total to more than the disclosure threshold.
  • A person made donations to a political party totalling exactly $13 000. These do not need to be disclosed as they are less than the disclosure threshold. If they totalled more than $13 000 then disclosure is required.
  • A person made a donation of $8 000 direct to a political party and a second donation of $7 000 to another organisation with the intention the organisation use the $7 000 for the benefit of the same political party. Both donations must be disclosed as the disclosure threshold for donations to the benefit of the same political party is exceeded.

Donations to a party where the party has several federal registrations

Political parties may have more than one registration, for example, the major parties – Australian Labor Party, Liberal Party of Australia, National Party of Australia, Australian Greens – have multiple parties registered with the AEC. These parties are considered branches and each registered branch has a separate disclosure obligation. Therefore it is important that when a donor discloses a donation, the correct branch of the party is identified.

The following examples may assist in clarifying some common issues where a donation has been made to a political party that has several registrations:

  • A person made a payment for attendance at a political party function where a member of the Commonwealth Parliament is the guest speaker. The registered political party hosting the function is a State branch of one of the major parties and the guest speaker is a member of that State branch. For disclosure purposes, the payment for attendance at the function has been made to the State branch of the political party and therefore the donor when disclosing the payment should ensure it is the State branch of the political party recorded on the return.
  • A person made a donation to the federal secretariat of a major political party with the intention of benefiting the political party at a federal election. The donation is required to be disclosed as being made to the federal secretariat of the major political party.

Donations received


Section 305B(3A) of the Act requires that where a person receives donations, which they then use to make donations, totalling more than the disclosure threshold, in a financial year to the same political party, the donations received must be disclosed.

The 'donations received' part of the return applies to a donor:

  • who is required to complete the 'Donations Made' part of the return,
  • who (whether within the 2015–2016 financial year or not), received a donation of more than $13 000; and
  • used that donation, or part of it, to make donations totalling more than $13 000 to a political party in the 2015–2016 financial year.

Cash donations, together with 'gifts-in-kind' received are required to be disclosed.

Where donations were made and were disclosed in Part 1 of the return, but no donations were received, Part 2 of the return should be marked 'nil'.

For donations received that meet the criteria for disclosure required by section 305B(3A) the following details must be disclosed:

  • Full name and address details of the person or organisation from whom the donation was received.
  • The date each donation was received.
  • The value or amount of each donation.

In the case of donations received from or on behalf of members of an unincorporated association (other than a registered industrial organisation), the name of the association and the name and address of each member of the executive committee of the association must be disclosed.

In the case of donations received from a trust or foundation, the title and description of the trust or foundation, along with the names and addresses of the trustees must be disclosed.

In any other case, the name and address of the person who made the donation must be disclosed.

Period covered

Unlike the disclosure of donations made which is limited to the 2015–2016 financial year, donations used to fund those donations must be disclosed even where they were received prior to 1 July 2015.

The following example may assist in clarifying the disclosure requirements when a person or organisation discloses donations made in the 2015–2016 financial year having used donations that were received in prior years to make those donations.

Example:

A donor received a donation of $17 000 in the 2013–14 financial year. The same donor received a donation of $15 000 in the 2014–15 financial year.

In the 2015–2016 financial year the donor made a donation of $20 000 to a political party. As the donor has made a donation that is more than the disclosure threshold, the donor is required to disclose the donation in the 'donations made' section of the return.

To make the $20 000 donation the donor used the $17 000 donation received in the 2013–14 financial year and part ($3 000) of the $15 000 donation received in the 2014–15 financial year. As the donor has used donations that were received in previous financial years to make a donation to a political party in the 2015–2016 financial year, the donor is required to disclose each of the donations ($17 000 and $15 000) as 'donations received' for the 2015–2016 financial year in the return.

If in a subsequent financial year to the 2015–2016 financial year, the donor used the remaining part ($12 000) of the $15 000 donation received in the 2014–15 financial year to make a donation that is more than the disclosure threshold, the donor will be required to disclose the $15 000 donation as a donation received in the subsequent financial year's return. In this situation, the donor can include an explanatory note on the return stating that the donation has previously been disclosed to minimise confusion.

1. Appendix 5 lists political parties registered with the AEC and their identification codes.