If I donate to a political party, can they use the money for something other than federal election purposes?

In Plain English

Based on the legislation provided, if you donate money to a political party, they can use it for purposes other than federal election purposes, such as State or Territory elections, as long as certain conditions are met. Specifically, the Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018 and the Commonwealth Electoral Act 1918 outline rules for gifts (donations) to political entities. These rules allow for gifts to be used for State or Territory electoral purposes, provided that the gift is either explicitly designated for that purpose by the donor or is kept and identified separately for that purpose. Additionally, State and Territory electoral laws must be followed when gifts are used for State or Territory electoral purposes.

Detailed Explanation

The Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018 and the Commonwealth Electoral Act 1918 address the use of gifts by political entities, including the possibility of using them for purposes other than federal elections.

• Gifts for State or Territory Electoral Purposes:
  • Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018 section 302CA(3) states that the provisions regarding giving, receiving, or retaining gifts do not apply if the gift is explicitly designated for a State or Territory electoral purpose by the donor, or if the gift is kept or identified separately to be used only for such purposes.
  • Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018 section 302CA(6) provides that money is considered kept or identified separately for State or Territory electoral purposes if it is kept in an account used exclusively for such purposes or is designated as such.
• Using Gifts:
  • Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018 section 302CA(4) allows a gift recipient to use or authorize the use of a gift for incurring electoral expenditure or creating electoral matter if this use is not prohibited by the Division.
  • Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018 section 302CA(5) clarifies that this does not apply if State or Territory law requires the gift to be kept separate for State or Territory electoral purposes.
• Federal Purposes:
  • Commonwealth Electoral Act 1918 section 302CA(4) allows a regulated entity to receive a gift of money if it is deposited into a federal account and not withdrawn except for federal purposes or transfer to another federal account.
  • Commonwealth Electoral Act 1918 section 302CA(7) allows a regulated entity to use a gift of money for federal purposes if it has been continuously kept in a federal account.
• State and Territory Electoral Laws:
  • Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018 section 302CA(1) states that giving, receiving or retaining gifts is allowed if the Division does not prohibit it, and the gift is used for electoral expenditure or creating electoral matter.
  • Electoral Legislation Amendment (Electoral Funding and Disclosure Reform) Act 2018 section 302CA(3) clarifies that the giving, receipt, retention, and use of a gift for State or Territory electoral purposes must comply with the relevant State or Territory electoral law.
• Disclosure Obligations:
  • Electoral Legislation Amendment (Miscellaneous Measures) Act 2020 section 314B outlines that a person or entity is not required to disclose an amount of money given for federal purposes under State or Territory law.
  • Electoral Legislation Amendment (Miscellaneous Measures) Act 2020 section 314B(1B) states that a regulated entity is not required to disclose an amount of money received if it is deposited into a federal account and used only for federal purposes.

Therefore, a political party can use your donation for State or Territory election purposes if the donation is designated or kept separate for that purpose, and if the relevant State or Territory laws are followed. If the donation is intended for federal purposes, it must be kept in a federal account and used accordingly.