What is a political donation?

A political donation is a gift made to, or for the benefit of, a political party, elected member, candidate, group of candidates, or other person or entity including an associated entity or third-party campaigner in New South Wales.

People and entities making political donations are called donors. Those making reportable political donations are called major political donors. The meaning of political donation differs for each political participant type.

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Political donations for local government elections

A political donation made to or for the benefit of a party, third-party campaigner or associated entity is a political donation for a local government election if:

• in relation to a donation to a party—the donation is paid into (or held as an asset of) the local government campaign account of the party

• in relation to a donation to a third-party campaigner or associated entity—the third-party campaigner or associated entity establishes that the donation was made solely for the purposes of a local government election campaign. 

Political donations for political parties

A political donation to a political party is a gift made to or for the benefit of the party.

Political donations made to or for the benefit of a political party must only be used for the objectives and activities of the party, including:

• the administration of the party and community activities
• electoral expenditure for state and local government elections
• electoral expenditure for or on behalf of elected members, candidates and groups of candidates who are members of the party.

Political donations to a political party must not be used for the personal use of an individual acting in a private capacity.

Political donations may be accepted by any person authorised by the party to accept donations on behalf of the party, and may be paid into the party’s campaign accounts or other accounts kept by a party (depending on the purpose of the donation). The authorised person must issue receipts or acknowledgements for all reportable political donations received by the party.

Political parties are required to keep complete and accurate records of all political donations received by the party.

Political donations for elected members

Political donations made to or for the benefit of an elected member include only those gifts made to the elected member, where the whole or part of the gift is used, or is intended to be used, by the elected member for the following purposes:

• solely or substantially in relation to an election
• solely or substantially in relation to the elected members duties as an elected member
• to enable the elected member to make (directly or indirectly) a political donation or to incur electoral expenditure
• to reimburse the elected member for making (directly or indirectly) a political donation or incurring electoral expenditure.

Elected members are not required to be registered for an election prior to accepting political donations.

All political donations must be made to or by the person responsible for the elected member and paid into or from the campaign account. The person responsible must issue receipts or acknowledgements for all reportable political donations received by the elected member.

Political donations for groups of candidates

A political donation to a group of candidates is a gift made to or for the benefit of the group.

Political donations can only be accepted if the group is registered for the election with the NSW Electoral Commission.

All political donations must be made to or by the person responsible for the group and paid into or from the campaign account. The person responsible must issue receipts or acknowledgements for all reportable political donations received by the group.

Political donations for candidates

A political donation is a gift made to or for the benefit of a candidate, the whole or part of which was used, or is intended to be used, by the candidate:

• solely or substantially for a purpose related to an election

• to enable the candidate to make (directly or indirectly) a political donation or to incur electoral expenditure

• to reimburse the candidate for making (directly or indirectly) a political donation or incurring electoral expenditure.

Political donations can only be accepted if the candidate is registered for the election with the NSW Electoral Commission.

All political donations must be made to or by the person responsible and paid into or from the campaign account. The person responsible must issue receipts or acknowledgements for all reportable political donations received by the candidate.

Political donations for associated entities, third-party campaigners and others

A political donation made to others, including associated entities and third-party campaigners, is a gift intended (in whole or part) to:

• enable the entity or person to make (directly or indirectly) a political donation or to incur electoral expenditure
• to reimburse the entity or person for making (directly or indirectly) a political donation or incurring electoral expenditure.

Political donations that are used by a third-party campaigner or associated entity to make payments for electoral expenditure that is incurred during the capped expenditure period for an election, cannot be accepted unless the associated entity or third-party campaigner:

• is registered with the NSW Electoral Commission
• has an official agent
• the donations are made to the official agent.

If a political donation is used to make payments for electoral expenditure, the donation must first be paid into the campaign account by the official agent. The official agent may appoint a person in writing to accept political donations and/or make payments for electoral expenditure from a campaign account.

The official agent must issue receipts or acknowledgements for all reportable political donations received by the third-party campaigner or associated entity.