Note that this is a guide to provide general information only. It is not intended to be legal advice — you should do your own assessment of your situation under the laws, and seek legal advice if necessary. While this guide has been prepared with great care, we do not take responsibility for any errors in the information provided.
Image Credit: AEC images
QUICK GLANCE GUIDE TO COMPLIANCE
In Victoria, third party campaigners are organisations that spend over a certain amount of money on political expenditure. Third party campaigners can spend as much as they want on political expenditure, but they must make disclosures and comply with specific obligations under the Electoral Act 2002 (Vic).
WHAT ARE THIRD PARTY CAMPAIGNERS?
Third party campaigners are those that have:
spent more than $4,320 in political expenditure in this financial year; or
received political donations in a financial year.
“Political expenditure” is expenditure for the dominant purpose of directing how a person should vote at an election. In addition, political expenditure must fall under one of two categories:
if it is published or aired between 1 October of an election year and election day:
it promotes or opposes the election of a candidate, political party or elected member; or
if it is published or aired before 1 October of an election year:
it refers to a candidate or a political party;
it refers to how a person should vote; and
it promotes or opposes the election of a candidate, political party or elected member.
Note that charities may have multiple purposes for making a communication – for instance raising awareness, influencing a candidate’s position on an issue pre-election, or educating the public. If any one of these purposes is the dominant purpose of the communication, it will not be counted as political expenditure.
When identifying the dominant purpose of a communication, consider:
what are we trying to achieve with this communication? What is our subjective purpose and strategy?
would internal documents and emails support this purpose and strategy?
It is a good idea to ensure staff working on a campaign in the lead up to a Victorian election are clear about the purpose and strategy of the campaign and advocacy, so it is accurately and consistently reflected in their internal and external communications.
“Political donations”, as is relevant to charities, are gifts to third party campaigners that are used, or are intended to be used, to:
enable the third party campaigner to incur political expenditure; or
reimburse the third party campaigner for political expenditure.
Note that if only part of the gift was used in such a way, only that part is regarded a political donation.
WHAT DO I HAVE TO DO IF MY ORGANISATION IS A THIRD PARTY CAMPAIGNER?
Comply with restrictions on political donations
If your organisation receives political donations, there are a number of things that it is not permitted to do. Most importantly, your organisation is not permitted to receive more than $4,320 in political donations from any one donor over the 4 years between state elections.
In addition, it is not permitted to receive:
foreign donations (donations can only come from Australian citizens, residents or businesses);
anonymous donations of $1,080 or more.
Finally, note that it us unlawful for political donors to make political donations to more than six third party campaigners in the four years between Victorian state elections.
Appoint an agent
You can appoint an agent by filling in the relevant form and sending it to the Victorian Electoral Commission. Appointing an agent is not mandatory under the Act: if you don’t, the “financial controller” of your organisation (if you’re a corporation the secretary, otherwise the person responsible for keeping the financial records) will be the default agent.
The agent is responsible for:
registering the third party campaigner on VEC Disclosures;
keeping the third party campaigner up to date on VEC Disclosures;
managing the state campaign account;
ensuring donations received are properly disclosed on VEC Disclosures; and
submitting annual returns.
Open and maintain a state campaign account
You must set up a state campaign account, from which your political expenditure is incurred. In addition, all political donations, including small contributions, must be paid into the state campaign account.
Disclose political donations within 21 days of receipt
If your organisation makes or receives a political donation of $1,080 or more you must disclose it through VEC Disclosures. You must do this within 21 days of receiving or making the donation.
Make an annual disclosure
Third party campaigners must provide an annual disclosure each financial year. In your annual disclosure, you need to provide your organisation’s:
total income;
total disclosed political donations;
total undisclosed political donations (i.e. those under the disclosure threshold);
the number of undisclosed political donors for the total undisclosed political donations;
total amounts received other than political donations;
total expenditure; and
outstanding debts.
Failure to provide a return to the VEC is punishable by a fine of up to 200 penalty units, or $36,984.
For further guidance as to what is required to submit an annual return, read the Victorian Electoral Commission’s guide.