South Australia has made history with the passing of legislation that bans political donations, setting the stage for a new approach to democracy. The Malinauskas Government has introduced the world-first policy aimed at cleaning up the influence of money in politics. This reform, which has now successfully passed the State Parliament, will come into effect in July 2025 and is expected to be implemented before the March 2026 State Election.
The reform, known as the Electoral (Accountability and Integrity) Amendment Bill 2024, promises to reshape the political landscape by significantly limiting the flow of money into the political process. With support from across the political spectrum—including the Liberal Party, Greens, and crossbench members—the Bill has garnered wide support, making it a landmark step in ensuring that South Australia’s democracy remains fair and accountable.
By banning political donations and gifts to political parties, members of Parliament, and candidates, the new law seeks to enhance public confidence in the electoral process. In addition to prohibiting financial contributions, strict penalties will be enforced for any attempts to circumvent the new regulations. The hope is to eliminate the financial influence that often sways political decision-making, and prevent the undue influence of donors who have deep pockets and the power to push their own agendas.
One of the core components of this legislation is the imposition of mandatory caps on expenditure for political parties, candidates, and third-party organisations. These third parties include entities such as businesses, unions, and think tanks, which have often been major players in the political funding landscape. By placing limitations on the value of donations that can be made to these third parties, the legislation aims to curb the extent to which private interests can influence public policy.
Furthermore, the reform rethinks the existing public funding model. Previously, political parties received funding based on the number of votes they received in the previous election. The new law will restructure this system, ensuring that future entrants to the political process, including independent candidates, are not financially disadvantaged. Independent candidates, in particular, will be able to receive donations up to $5,000 and will also be subject to the same spending caps as major parties. This ensures that smaller parties and independents can compete on a level playing field, despite their more limited access to funding.
The legislation is also sensitive to the needs of political newcomers. It includes provisions for advance payments to new entrants, which will help them get their campaigns off the ground. These changes aim to ensure that South Australia’s political system remains competitive, inclusive, and accessible to those who want to serve their communities, not just those who can afford to fund their campaigns.
Volunteers continue to play a vital role in South Australian elections. Under the new law, candidates can still rely on the help of volunteers to support their campaigns, ensuring that grassroots politics is not sidelined in favour of big money.
The reform process has been carefully considered, with input from a range of experts. Constitutional experts, the Solicitor General, the Electoral Commission, democracy groups, and political participants have all had a say in shaping this law. As a result, the legislation aims to balance democratic fairness with practical considerations, making it workable and effective. Despite this careful drafting, the reform is expected to face legal challenges, possibly all the way to the High Court, as some may argue that it impinges on political freedom.
Yet, the Malinauskas Government has shown resilience, stating that the new law is not about political advantage, but about doing what is right for South Australians. Premier Peter Malinauskas made it clear that this legislation is not a move aimed at benefiting his Government. Instead, it is a reform that aims to restore public trust in politics and refocus the conversation on the issues that truly matter to the public, not the influence of deep-pocketed donors.
“South Australians rightly expect that their politicians should be focusing on the issues that matter to them, not spending their days chasing dollars,” said Malinauskas in a statement. “This legislation has been carefully crafted on the best advice of experts and in close consultation with democracy groups to ensure we have a system that is fair and workable.”
This reform builds on South Australia’s long tradition of democratic innovation. The state has often been at the forefront of progressive political reforms, and this new law is no exception. South Australia now joins a growing movement of places around the world looking to curtail the influence of money in politics, even though this type of reform is still rare.
Another major achievement of this week’s legislative activity in South Australia is the passing of laws designed to combat unsolicited robocalls and the use of artificial intelligence to manipulate electoral outcomes. The introduction of regulations around deepfakes is especially timely, as the rise of AI-generated content has raised concerns about the potential for digital manipulation during elections. These new measures aim to ensure that voters are not misled by fabricated media or false information. Additionally, the reform includes provisions that will allow pre-poll votes to be counted on polling day, making the process more efficient. The display of federal electoral corflutes will also be banned to avoid cluttering the voting environment.
The government is also making provisions to assist voters who have sight or motor impairments by providing telephone-assisted voting options. These changes will help ensure that all eligible voters have equal access to the democratic process, regardless of their physical abilities.
Dan Cregan, one of the key architects of the reform, spoke about the broader significance of the donation ban, saying, “This reform sets out to end the pervasive impact of political donations in our electoral system and reverse an emerging trust deficit seen worldwide. Decisions taken by members of Parliament must always be made in the public interest, and a ban will prevent donors from enjoying greater influence or access.”
Cregan also stressed that the law strikes a balance between curbing the influence of money and respecting the constitutional guarantee of political communication. This careful balance is one of the reasons the legislation has received broad support, even from those who might typically be opposed to such sweeping reforms.
With the law set to take effect in 2025, South Australia is poised to take a bold step forward in its political evolution. The ban on political donations is just the beginning. The government has indicated that this reform is part of a larger vision to modernise and strengthen democratic processes, ensuring that South Australia remains at the forefront of political innovation and transparency.
As the March 2026 State Election approaches, all eyes will be on South Australia to see how the new laws impact political campaigning. Will the ban on donations level the playing field for all candidates? Will it truly restore public trust in the system? South Australia is about to set an example that could inspire other regions and nations to follow suit. Only time will tell, but one thing is clear: South Australia has made a bold move towards cleaner, more accountable politics.
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