High Court Decision on Donation Laws Sparks Tension in Government

Friday 24 January 2014 @ 8.58 a.m. | Judiciary, Legal Profession & Procedure | Legal Research

NSW Premier Barry O’Farrell has said that despite a recent High Court decision that held ss 96D and 95G(6) of the Election Funding, Expenditure and Disclosures Act 1981 (NSW) (EFED Act) are invalid, the NSW Government remains determined to clean up the political donations culture in NSW.

The Act was introduced to make changes to the State’s electoral funding laws. Section 96D of the Act prohibits the making of a political donation to a political party, elected member, group, candidate or third-party campaigner, unless the donor is an individual enrolled on the electoral roll for State, Federal or Local Government elections. When the matter appeared before the High Court, it was decided that the law was unconstitutional as it impermissibly burdened the implied freedom of political communication on governmental and political matters.

“I am disappointed with (the Court’s) decision but we remain determined to deliver the people of NSW a fair and transparent electoral funding system to restore trust in the political process in this State.”

Mr O’Farrell said. He emphasised that the Government will not back away from its determination to stamp out corruption and “labor’s rotten ‘decisions for donations’ culture.” Mr O’Farrell went on to say that the Government will not be bullied by people seeking to use the courts to override the intention of Parliament whether it related to motorcycle gangs or Labor’s donation culture.

Mr. O’Farrell explained that the decision mean that affiliated unions to the Labor Party can have their own expenditure cap.

“That in effect means entities that decide Labor Party policy and candidates can ‘double dip’ and be treated the same as truly independent organisations like the RSPCA and Red Cross.” 

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