Electoral expenditure

Parties, groups, candidates and other electoral participants are responsible for complying with the rules for electoral expenditure set out in the Electoral Funding Act and the Electoral Funding Regulation.

The rules set out in the section Political donations in relation to who is responsible for the management and disclosure of political donations and electoral expenditure apply for all electoral expenditure incurred in relation to the election.

For further information go to the NSW Electoral Commission website: elections.nsw.gov.au/funding-and-disclosure/electoral-expenditure or email fdc@elections.nsw.gov.au.

What is electoral expenditure?

Electoral expenditure is expenditure:

• for or in connection with promoting or opposing, directly or indirectly, a political party, or the election of a candidate or candidates or
• for the purpose of influencing, directly or indirectly, the voting at an election.

Electoral expenditure is expenditure incurred:

• on advertisements in radio, television, the internet, cinemas, newspapers, billboards, posters, brochures, how-to-vote cards and other election material
• on the production and distribution of election material
• on the internet, telecommunications, stationery and postage
• in employing staff engaged in election campaigns
• for office accommodation for any such staff and candidates (other than for the campaign headquarters of a party or for the electorate office of an elected member)
• on travel and travel accommodation for candidates and staff engaged in electoral campaigning
• on research associated with election campaigns (other than in-house research), and
• in raising funds for an election or in auditing campaign accounts.

Electoral expenditure also includes expenditure incurred in the use or acquisition of any of the following items that are acquired and disposed within a 10-week period that includes election day:

• a motor vehicle
• motor vehicle accessories
• a vessel or aircraft used for the purpose of navigation
• televisions and radios
• television and radio broadcasting equipment
• electronic equipment for recording sounds or visual images
• photographic equipment
• computers and associated equipment and computer software, or
• office furniture and equipment.

Electoral expenditure includes only so much of the purchase price of the property that is not recovered in the disposal of the property.

What electoral expenditure does not include

Electoral expenditure does not include:

• expenditure incurred substantially in respect of an election of members to a Parliament other than the NSW Parliament or
• expenditure on factual advertising of:
  • meetings to be held for the purpose of selecting a person for nomination as a candidate for election
  • meetings for organisational purposes of parties, branches of parties or conferences, committees or other bodies of parties or branches of parties or
  • any other matter involving predominantly the administration of parties or conferences, committees or other bodies of parties or branches of parties.

The NSW Electoral Commission issues guidelines to give further examples of what is and is not electoral expenditure. The guidelines are available at: elections.nsw.gov.au/about-us/legislation/funding-legislation/guidelines-under-the-electoral-funding-act-2018.

Making payments for electoral expenditure

Parties – Electoral expenditure incurred by a party for a local government election campaign must be made from the party’s local government campaign account. The expenditure can be paid by any person authorised by the party. Any person who makes a payment for electoral expenditure from the party’s local government campaign account must provide the details of the expenditure to the party for the purpose of the party keeping complete and accurate records.

Elected members, candidates and groups – Payments for electoral expenditure cannot be made by or on behalf of a candidate or group until the candidate or group is registered for the election with the NSW Electoral Commission (refer to refer to Registration of candidates and groups).

Electoral expenditure must be paid by the elected member, candidate or lead candidate of a group from the campaign account of the elected member, candidate or group. Complete and accurate records must be kept of all electoral expenditure incurred.

Caps on electoral expenditure

Electoral expenditure in connection with a local government election campaign is capped during the capped expenditure period for the election which is 1 July 2024 to election day. Caps on electoral expenditure apply to parties, candidates, groups, and third-party campaigners.

It is unlawful for a party, candidate, group or third-party campaigner to incur electoral expenditure during the capped expenditure period for the election that is in excess of the applicable cap.

What are electoral expenditure caps?

There are eight levels of caps depending on the number of enrolled electors in an area or ward. The amounts are adjusted following the NSW Local Government elections. The expenditure caps applicable to the 2024 local government elections are:

New South Wales is divided into geographical areas known as local government areas, each run by a council. A local government area may or may not be further divided into wards. Each council determines whether it has wards, the number of wards and the names of wards.

If the number of enrolled electors in each ward of a local government area results in different expenditure caps between wards of that area, the highest cap among those wards will apply to all wards in that area.

The details of the number of enrolled electors and applicable caps for each area or ward are published at elections.nsw.gov.au/funding-and-disclosure/electoral-expenditure/caps-on-electoral-expenditure/expenditure-caps-for-local-government-elections. Candidates, groups and third-party campaigners are notified of the applicable caps when they are registered.

Aggregation of electoral expenditure for a group and its members

Electoral expenditure incurred by a group of candidates and by a candidate who is a member of the group must be aggregated for the purpose of the expenditure caps. The aggregated expenditure must be within the applicable cap for the candidate or group.

Caps for mayoral candidates in areas divided into wards

In a local government area that is divided into wards the cap for a mayoral candidate (or a group that includes a mayoral candidate) is equal to:

• 100 per cent of the cap for a non-mayoral candidate in a ward of the area, plus 25 per cent of the cap for a non-mayoral candidate in each of the other wards of the area.
  • For example, if an area has four wards and the expenditure cap for a non-mayoral candidate in a ward is $10,000, the expenditure cap for a mayoral candidate in that area is $10,000 (ward 1) + $2,500 (ward 2) + $2,500 (ward 3) + $2,500 (ward 4) = $17,500.

Caps for candidates running for Mayor and Councillor at the same time

The cap for a candidate running for Mayor and Councillor at the same election is the applicable cap for a mayoral candidate.

Caps for parties with candidates

Any electoral expenditure incurred by a party for its endorsed candidate or group must be within the candidate or group’s expenditure cap when aggregated with any other electoral expenditure incurred by the candidate or group.

If electoral expenditure is incurred for a party’s endorsed candidate or group by an associated entity of the party, or by an elected member who is a member of the party but who is not standing as a candidate at the election, the expenditure of the entity and elected member must be within the candidate or group’s expenditure cap when aggregated with any other electoral expenditure incurred by the candidate or group.

What is the capped expenditure period?

The capped expenditure period starts on 1 July and ends on election day.

When is electoral expenditure incurred?

For the purposes of the expenditure caps, expenditure is taken to be incurred when the services are provided or the goods are delivered. For example:

• when the advertising is broadcast or published
• when the electoral material is distributed or
• the period of employment of election campaign staff.

Even if payments for electoral expenditure are made outside of the capped expenditure period, if the services are provided or the goods are delivered including the examples above, during the capped expenditure period, the expenditure is subject to the caps.

Exemptions from the caps

For the purpose of caps on electoral expenditure for election campaigns, the following exemptions apply:

• The cost of expenditure incurred on travel and travel accommodation for candidates and staff engaged in electoral campaigning. (Note: this does not apply to expenditure incurred in connection with a motor vehicle, vessel or aircraft decorated with or displaying advertising or electoral material for a candidate or party – which must be included in the calculation of electoral expenditure counted towards the caps).
• The cost of expenditure incurred for office accommodation for a single campaign office for a candidate or a party engaged in an election campaign, including for the campaign headquarters of a party, but only to a maximum amount of $20,000 . (Note: such costs over $20,000 must be included in the calculation of electoral expenditure counted towards the caps).

The amounts that are exempt from the expenditure caps must still be disclosed as electoral expenditure. The NSW Electoral Commission monitors compliance with the laws applicable to expenditure caps and, if a breach is found, can recover up to twice the value of expenditure incurred that exceeds the cap. Other penalties can also apply.