Money and power in South Australian elections: the effects of a donation ban on competitive elections
The proposed increase in public funding and restrictions on donations for South Australian elections would unfairly favour major parties and incumbents at the expense of competitive elections. A democracy voucher model of public funding would better meet the stated objectives behind the change, while also providing for fairer elections and empowering South Australian voters.
The cost of party and candidate campaigns in the 2022 South Australian election exceeded public funding by $3.3 million. The shortfall was covered with private funding, including political donations. The Electoral (Accountability and Integrity) Amendment Bill 2024 would increase public funding by about $14 million per electoral cycle. However, it would go overwhelmingly to the major parties. Sitting independent MPs and minor parties with parliamentary representation would also benefit. There are also problems with the Bill’s limits on spending, which do not account for the advantages of incumbency. Further, the Bill would make spending caps mandatory for all candidates while not restricting third parties at all.
This submission argues that the Bill should not be passed in its current form and that an alternative public funding system, called “democracy vouchers”, could better achieve the Bill’s objective. Democracy vouchers would help remove private money from South Australian elections while also putting incumbents and new entrants on a level playing field; encouraging parties and candidates to engage with the public ahead of an election; and leaving it for the public to decide how much money is spent on public funding.
Key features of an effective public funding model
- Replaces all private money in South Australian elections.
- Does so in a way that is fair to new entrants as well as incumbents.
- Encourages political parties and candidates to involve the community in electoral and party processes.
- Addresses the asymmetry of power between the wealthy and the disadvantaged.
- Empowers South Australians to decide who – if anyone – is funded and how much funding they receive.
