Victorian politics remains vulnerable to unlimited dark money and foreign donations after the Allan government failed to secure an agreement with the Liberal party and the Greens on urgent political donation reforms. The state is now without caps on political donations or disclosure requirements, just months ahead of the November election.
High Court Ruling Leaves Victoria Exposed
The previous laws allowed individuals and organizations to donate up to $4,970 to a candidate, with an exemption for money transferred to registered political parties through their nominated entities. However, the High Court struck down the entire section of the electoral act governing political donations, deeming it unconstitutional. This decision has left the Victorian Electoral Commission unable to distribute the latest round of public funding and opened the door to large donations, including from foreign sources.
Government's Pledge to Fast-Track Reforms
Premier Jacinta Allan immediately vowed to restore electoral integrity, warning that the state was exposed to dark money in politics. She promised to fast-track reforms through parliament and backdate them to the date of the High Court decision. Since then, Labor, the Liberals, and the Greens have been in negotiations, broadly agreeing on the need for donation caps, disclosure requirements, and public funding. However, key details remain unresolved, including the donation cap level, treatment of nominated entities, and whether laws should be retrospective. As a result, the bill will not be introduced before June.
Divergent Views Among Parties
Greens leader Ellen Sandell called for strict caps or bans on political donations and closure of loopholes that allow major parties to rig the rules. She emphasized that unlimited dark money from overseas, billionaires, and corporations could influence the state election. Liberal sources indicated they would reject retrospective laws and seek a higher donation cap. Opposition leader Jess Wilson stated that good-faith discussions continue, urging Labor to bring forward legislation. The government has also consulted crossbench MPs, including Libertarian MP David Limbrick, who expressed disappointment over the delay, warning that without safeguards against foreign donations, Victoria faces a national security risk.
Minor Parties and Civil Society Weigh In
Animal Justice party MP Georgie Purcell supported reform but argued that the previous cap was too restrictive for minor parties, giving an advantage to major parties with wealthy entities and corporate donors. She advocated for a modest increase to allow proper election funding. The Australia Institute published an open letter calling for retrospective and fair laws, an independent review, and broader public consultation. The Centre for Public Integrity urged the urgent restoration of disclosure and public funding rules before a broader overhaul after the election.
