Political donations

Parties, groups, candidates and other election participants in the 2023 NSW State election are responsible for understanding and complying with the rules for political donations.

This section provides an overview about who is responsible for the management and disclosure of political donations and electoral expenditure and the requirements for political donations.

For further information visit the Political donations page or contact us.

Who is responsible for the management and disclosure of political donations and electoral expenditure?

Political parties, candidates, groups and party agents must understand their responsibilities for managing and disclosing political donations and electoral expenditure.

Political Parties

Each political party, whether or not a registered party, is responsible for maintaining complete and accurate records of the political donations and electoral expenditure of the party and for the operation of the party’s campaign accounts.

It is a matter for each party to authorise individuals to accept political donations on behalf of the party and to make payments for electoral expenditure from the campaign account of the party.

The party agent of each party is responsible for the disclosure of the political donations made and received and electoral expenditure incurred by the party.

If the party agent is absent or unavailable, the registered officer of a political party can lodge a disclosure or public funding claim if the registered officer has completed the agent training (or is exempt), and the party agent or registered officer has advised the NSW Electoral Commission in writing in advance of any occasion on which the registered officer is to lodge a disclosure or claim on the agent’s behalf. A party agent remains the person who is legally responsible for making disclosures for a political party.

If a candidate at the election has been dis-endorsed by a political party, the party agent may notify the NSW Electoral Commission of this. Once the NSW Electoral Commission has received this notice, the person responsible for making a disclosure for the dis-endorsed candidate will be the candidate, and not the party agent of the party.

State election elected members and candidates who are members of a registered political party

The party agent of a political party that is registered for State elections is responsible for the disclosure of political donations and electoral expenditure of all elected members and candidates at the 2023 NSW State election who are members of the party.

This is the case even if a candidate (including an elected member who is seeking re-election) was not nominated by the party for the election. It is a matter for each party to determine whether to continue a person’s membership of the party where the person has not been nominated by the party as a candidate at the election.

The party agent’s responsibilities also include:

maintaining complete and accurate records of the political donations and electoral expenditure of the elected member or candidate, and
using the party’s campaign account to deposit political donations made to the elected member or candidate, and
depositing into the party’s campaign account any contributions made by the elected member or candidate to their own campaign, and
paying electoral expenditure incurred on behalf of the elected member or candidate from the party’s campaign account.

If the party agent is absent or unavailable, the registered officer of a political party can lodge a disclosure or public funding claim if the registered officer has completed the agent training (or is exempt), and the party agent or registered officer has advised the NSW Electoral Commission in writing in advance of any occasion on which the registered officer is to lodge a disclosure or claim on the agent’s behalf. A party agent remains the person who is legally responsible for making disclosures for the elected member or candidate.

State election candidates and elected members who are not members of a registered political party

Each elected member or candidate who is not a member of a political party that is registered for State elections is responsible for managing and disclosing their own political donations and electoral expenditure.

The elected member or candidate’s responsibilities also include:

maintaining complete and accurate records of the political donations and electoral expenditure of the elected member or candidate, and
operating a campaign account to deposit political donations made to the elected member or candidate, and
depositing into their campaign account any contributions made by the elected member or candidate to their own campaign, and
paying electoral expenditure incurred by the elected member or candidate from their campaign account.

The elected member or candidate is responsible for the disclosures of political donations made and received and electoral expenditure incurred by the elected member or candidate.

State election groups whose members are members of a registered political party

The party agent of a political party that is registered for State elections is responsible for the political donations and electoral expenditure of all groups at the 2023 NSW State election whose members are members of the party.

This is the case even if a group was not formed with the authorisation of the party. It is a matter for each party to determine whether to continue the party membership of individuals where the individuals have formed a group without the authorisation of the party.

If at least one group member is a member of one registered party and at least one group member is a member of another registered party, the party agent of the party that the group’s lead candidate is a member of, is the person responsible for the group.

The party agent is responsible for maintaining complete and accurate records of the political donations and electoral expenditure of the group and for using the party’s campaign account to deposit political donations made to the group and pay electoral expenditure incurred on behalf of the group.

The party agent is responsible for the disclosure of political donations made and received and electoral expenditure incurred on behalf of the group.

State election groups where at least one member of the group is not a member of a registered political party

In the case of a group where at least one group member is not a member of a political party that is registered for State elections, the candidate who is the lead candidate in the group is responsible for managing and disclosing the group’s political donations and electoral expenditure. The lead candidate is:

the candidate who is listed first in a request to form a group for the ballot paper
if the group was registered for the election, the candidate who is listed first in relation to the group in the Register of Candidates.

The lead candidate is responsible for maintaining complete and accurate records of the political donations and electoral expenditure of the group, and for operating a campaign account to deposit political donations made to the group, and pay for electoral expenditure incurred by the group.

The lead candidate is responsible for the disclosure of political donations made and received and electoral expenditure incurred by the group.

What is a political donation?

Political donations are strictly regulated at NSW state elections and penalties apply for non-compliance. All party agents, candidates, groups and any person authorised or appointed to accept political donations must understand these rules before accepting political donations.

Generally, a political donation has a different meaning for a party, group, candidate or other electoral participants, such as associated entities and third-party campaigners.

Parties and groups

Elected members

A political donation is a gift made to or for the benefit of a Member of Parliament or a local government councillor or mayor, the whole or part of which was used or is intended to be used by the elected member:

solely or substantially for a purpose related to an election or to the elected member’s duties as an elected member, or
to enable the elected member to make, directly or indirectly, a political donation or to incur electoral expenditure, or
to reimburse the elected member for making, directly or indirectly, a political donation or incurring electoral expenditure.

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, or
to enable the candidate to make, directly or indirectly, a political donation or to incur electoral expenditure, or
to reimburse the candidate for making, directly or indirectly, a political donation or incurring electoral expenditure.

Others

A political donation is a gift made to or for the benefit of an entity or other person (not being a party, elected member, group or candidate), the whole or part of which was used or is intended to be used by the entity or person:

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

A political donation includes:

a monetary gift
a non-monetary gift
the provision of a service at no charge, or at a discounted rate
a contribution, entry fee or other payment entitling a person to participate in, or benefit from, a fundraising event where the amount paid forms part of the gross proceeds of the venture or function
annual or other subscriptions paid to a political party by a member of a party or by a person or entity for affiliation with the party
a disposition of property:
- to a NSW party branch of a political party from the federal branch of the party,
- to a NSW party branch of a political party from another State or Territory party branch of the party, or
- from a political party to another political party (e.g. common membership, coalition arrangement)
uncharged interest on a loan i.e. the additional amount that would have been payable by an entity or person if the loan had been made on terms requiring the payment of interest at the generally prevailing interest rate for a loan of that kind, and the interest payable had not been waived, and any interest payments were not capitalised.
any part of a gift that is subsequently used to incur electoral expenditure.

A political donation does not include:

the provision of voluntary labour
the provision of voluntary professional services to a party by an officer or an elected member of the party
a gift to an individual made in a private capacity for his or her personal use
bequests
public funding payments made by the NSW E lectoral Commission to a political party, elected member or candidate
a gift made solely for the purpose of a Federal election or a member of the Federal Parliament, or an election outside of New South Wales, or an elected member outside of New South Wales.

The NSW Electoral Commission issues guidelines to give further examples of what is and is not a political donation including the interest rates for loans. Refer to the Guidelines under the Electoral Funding Act 2018 page.

How can political donations be used?

Parties

Political donations can only be used by a party for the objects and activities of the party, including:

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

Elected members, candidates and groups

Political donations can only be used by an elected member, candidate or group:

to incur electoral expenditure,
to reimburse a person for incurring electoral expenditure, or another purpose authorised by the Electoral Funding Act.
for making a donation to another elected member, group of candidates or a candidate (other than a donation to those who are not endorsed by a political party or who are endorsed by another party).

Small political donations

A small political donation is a single donation of less than $1,000 made by a donor. A small political donation also includes multiple small donations made by the same donor to the same party, elected member, group or candidate in a financial year that in aggregate is less than $1,000.

If a small political donation is received by a party, elected member, group or candidate a record must be kept of the donation. The total value and total number of small political donations made and received are required to be disclosed to the NSW Electoral Commission.

Reportable political donations

A reportable political donation is a single donation of $1,000 or more made by a donor. A reportable political donation also includes multiple donations made by the same donor to the same party, elected member, group or candidate in a financial year that in aggregate are more than $1,000 or more.

If a reportable political donation is received by a party, elected member, group or candidate a record must be kept of the donation and the donor and a receipt must be issued to the donor (or a written acknowledgement for non-monetary donations). The receipt/acknowledgement must include a statement advising the donor of the following:

If you make a political donation of $1,000 or more, you must complete and lodge a declaration with the Electoral Commission in accordance with the Electoral Funding Act 2018. A political donation includes a contribution or entry fee or an annual or other subscription. You must also disclose a political donation of less than $1,000 if the total amount of political donations made by you in respect of the same party (or associated entity), elected member, group, candidate, third-party campaigner or person in the same financial year is $1,000 or more. Penalties apply for failing to lodge a declaration.

Parties – receipts/acknowledgments for reportable political donations are to be issued by a person authorised by the party.

Elected members, candidates and groups – receipts/acknowledgments for reportable political donations are to be issued by the person responsible as applicable to the elected member, candidate or group.

The full details of all reportable political donations made and received are required to be disclosed to the NSW Electoral Commission.

Reportable loans

A reportable loan is a loan that, if it had been a gift, would be a reportable political donation. A loan includes an advance of money, the provision of credit or any other transaction that in substance effects a loan of money.

A person accepting a loan must keep the following records of a reportable loan (other than a loan from a financial institution):

the terms and conditions of the loan, and
the name and address of the entity or other person making the loan.

If a person or entity makes more than one loan to the same party, elected member, group, candidate or other person within a financial year, the loans are to be aggregated and treated as a single loan.

Each transaction in which credit is provided by the use of a credit card is taken to be a separate loan.

The details of reportable loans received must be disclosed to the NSW Electoral Commission.

It is unlawful for a person to accept a reportable loan without keeping the records required above.

Who can make a political donation?

Only certain individuals and entities are eligible to make political donations in New South Wales:

an individual enrolled to vote at federal elections or in New South Wales for state or local government elections, or
an entity with a business number recognised by the Australian Securities and Investments Commission (e.g. ABN or ACN), or
an individual or entity who has supplied to the NSW Electoral Commission identification that is acceptable to the NSW Electoral Commission (individuals or entities seeking approval of acceptable identification in order to make political donations must use the Application for approval of acceptable identification by a potential political donor (EF.708).

It is unlawful to accept a political donation from a person or entity who is not eligible to make political donations. Further, certain individuals and entities are prohibited from making donations (see prohibited donors for further information).

Accepting political donations

Recipient or beneficiary of donation	Person accepting donation	Prerequisites for accepting donation	Further obligations of person accepting donation
Political party	Any person authorised by the party to accept political donations	Ensure that the donor is eligible to make political donations and the donation is not unlawful.	Deposit donations (that will be used by the party to incur electoral expenditure for the state election) into the party’s State campaign account. Provide the details of the donation and donor to the party so the party can keep complete and accurate records and can issue a receipt or acknowledgement to the donor if the donation is reportable.
Elected member, candidate or group – party members	The party agent	The candidate or group is registered for the election with the NSW Electoral Commission (refer to the section Registration of candidates and groups). Ensure that the donor is eligible to make political donations and the donation is not unlawful.	Deposit donations (that will be used by the party to incur electoral expenditure for the state election) into the party’s State campaign account. Keep a complete and accurate record of each political donation made to or for the benefit of an elected member, candidate or group, and issue the donor with a receipt/acknowledgement if the donation is a reportable political donation.
Elected member, candidate or group – not party members	The elected member, candidate or lead candidate of the group	The candidate or group is registered for the election with the NSW Electoral Commission (refer to the section Registration of candidates and groups). Ensure that the donor is eligible to make political donations and the donation is not unlawful.	Pay donations into the campaign account of the elected member, candidate or group. Keep a complete and accurate record of each political donation made to or for the benefit of an elected member, candidate or group and issue the donor with a receipt/acknowledgement if the donation is a reportable political donation.

Recipient or beneficiary of donation

Person accepting donation

Prerequisites for accepting donation

Further obligations of person accepting donation

Political party

Any person authorised by the party to accept political donations

Ensure that the donor is eligible to make political donations and the donation is not unlawful.

Deposit donations (that will be used by the party to incur electoral expenditure for the state election) into the party’s State campaign account.

Provide the details of the donation and donor to the party so the party can keep complete and accurate records and can issue a receipt or acknowledgement to the donor if the donation is reportable.

Elected member, candidate or group – party members

The party agent

The candidate or group is registered for the election with the NSW Electoral Commission (refer to the section Registration of candidates and groups).

Ensure that the donor is eligible to make political donations and the donation is not unlawful.

Deposit donations (that will be used by the party to incur electoral expenditure for the state election) into the party’s State campaign account.

Keep a complete and accurate record of each political donation made to or for the benefit of an elected member, candidate or group, and issue the donor with a receipt/acknowledgement if the donation is a reportable political donation.

Elected member, candidate or group – not party members

The elected member, candidate or lead candidate of the group

The candidate or group is registered for the election with the NSW Electoral Commission (refer to the section Registration of candidates and groups).

Ensure that the donor is eligible to make political donations and the donation is not unlawful.

Pay donations into the campaign account of the elected member, candidate or group.

Keep a complete and accurate record of each political donation made to or for the benefit of an elected member, candidate or group and issue the donor with a receipt/acknowledgement if the donation is a reportable political donation.

Anonymous political donations

Before a person accepts a reportable political donation, the person must know the name and address of the person who is making the donation and the person making the donation must give the person accepting the donation the donor’s name and address.

It is unlawful to accept a reportable political donation from an anonymous donor and if the person accepting the donation has grounds to believe that the name and address given by the person are not the true name and address of the donor the donation must not be accepted.

Prohibited donors

Individuals and entities from certain industries are prohibited from making political donations in New South Wales. It is unlawful for a:

prohibited donor to make a political donation
person to make a political donation on behalf of a prohibited donor
person to accept a political donation from a prohibited donor or a person on behalf of a prohibited donor
prohibited donor to solicit another person to make a political donation, and

person to solicit another person on behalf of a prohibited donor to make a political donation.

A prohibited donor is:

a property developer
a tobacco industry business entity
a liquor or gambling industry business entity
close associates of the above, and
any industry representative organisation if the majority of its members are prohibited donors.

For the detailed definitions of prohibited donors refer to section 53 of the Electoral Funding Act.

Caps on political donations

Political donations are capped in New South Wales. Caps on political donations are adjusted each financial year and are published on the Caps on political donations page. The current caps are:

$7,000 to or for the benefit of a registered political party or group, and
$3,300 to or for the benefit of an unregistered party, candidate, elected member, associated entity or third-party campaigner.

For the purpose of the donation caps:

political donations made by the same donor to the same recipient in a financial year are to be aggregated
political donations made by the same donor to elected members, candidates and groups of candidates endorsed by the same party in a financial year are to be aggregated
donations made by the same donor to the same recipient in a financial year are to be aggregated separately in relation to donations for local government elections and donations for other purposes.

There are a number of exemptions that apply to the caps on political donations:

a party levy paid to a party by an elected member or a candidate who is a member of the party
an amount paid to a party by a Legislative Assembly candidate who is a member of the party, during the financial year of a state general election, is exempt from the donation caps up to $66,400, which is the maximum amount of electoral expenditure the party can incur substantially for the purpose of the candidate’s electoral district
an amount paid to a party by a Legislative Council candidate who is a member of the party, during the financial year of a state general election, is exempt from the donation caps up to $55,800

an amount paid to a Legislative Council group by a candidate who is a member of that group but who is not a member of a party, during the financial year of a state general election, is exempt from the donation caps up to $55,800
an annual or other subscription paid to a party by a member of the party, or by an entity or other person for affiliation with the party, is exempt from the donation caps, up to the following amounts:
- a party member – $2,000
- a party affiliate whose subscription to the party is not based on the number of members of the affiliate – $2,000, and
- a party affiliate whose subscription to the party is based on the number of members of the affiliate – $2,000 per member of the affiliate.

It is unlawful to accept a political donation if the donation exceeds the applicable cap on donations.

A political donation that exceeds the applicable cap on donations is not unlawful if it, or the amount in excess of the cap, is paid into an account kept exclusively for federal election campaigns.

An individual who makes a political donation on behalf of a corporation that is related to another corporation that has made a political donation to the same party, elected member, group or candidate in the same financial year must disclose to the person accepting the donation the following about the other corporation and its political donations:

the name of the corporation making the political donation
the names of the other corporations and the amounts of the political donations made during that same financial year.

Self-funding

‘Self-funding’ contributions made by a candidate to their own campaign are not political donations and are not subject to donation caps. Contributions made by a candidate to the group or party of which the candidate is a member are political donations from the candidate to the group or party and are subject to the donation caps.

If a candidate is responsible for operating their campaign account, the ‘self-funding’ contribution must be paid into the campaign account. If a party agent is responsible for a candidate, the ‘self-funding’ contribution must be paid into the party’s State campaign account by the party agent.

During the financial year of a state election, a candidate who is a member of a registered political party may make:

self-funding contributions to the party agent to be paid into the State campaign account of the party to finance the candidate’s own election campaign, and

the following political donations to the party:
- political donations subject to the donation cap of $7,000, and
- political donations of up to $66,400, which is the maximum amount of electoral expenditure the party can incur substantially for the purpose of the candidate’s electoral district.

Indirect campaign contributions

The following are indirect campaign contributions to a party, elected member, group or candidate:

the provision of free or discounted office accommodation, vehicles, computers or other equipment for use solely or substantially for election campaign purposes
the full or part payment by a person of electoral expenditure for advertising or other purposes incurred or to be incurred by the party, elected member, group or candidate (or an agreement to make the payment), and
the waiving of all or any part of a payment of electoral expenditure for advertising incurred or to be incurred by a party, elected member, group or candidate.

In relation to an indirect campaign contribution, electoral expenditure for advertising is taken to be incurred by a party, elected member, group or candidate if the advertising is authorised by the party, elected member, group or candidate.

An indirect campaign contribution does not include:

volunteer labour or the incidental or ancillary use of vehicles or equipment of volunteers
anything provided or done by a party for the candidates endorsed by the party in accordance with arrangements made by the party agent of the party
a public funding payment made to a party, elected member or candidate by NSW Electoral Commission.

It is unlawful for a person to make or accept the following indirect campaign contributions taking into account the total value of things provided or done by the same person over the same financial year:

anything provided to or done for the benefit of a registered party or a group valued at more than $7,000
anything provided to or done for the benefit of an unregistered party, elected member or candidate valued at more than $3,300.

The above amounts are relevant to the 2022/23 financial year and are adjusted each financial year.