Zali Steggall engages in heated confrontation with Labor official Don Farrell

Share and Follow

Independent MP Zali Steggall has confronted Labor frontbencher Don Farrell over controversial electoral reforms capping political donations.

The reforms, which impose limits on how much a political candidate can receive as well as how much a single donor can contribute, passed the Senate late on Wednesday night.

While crossbenchers have supported transparency measures in the legislation, they have been critical of the $800,000 electorate cap, saying the new measures will largely benefit the major parties.

The trade minister stopped to take questions from the media in the corridors of the press gallery when Steggall came up from behind and started to criticise the changes.

“There’s now a cap on how much you can spend in an individual electorate,” Farrell told reporters on Thursday. “That must be good for all ordinary Australians who want to participate in the electoral process.”

Steggall began interjecting: “If you’re so sure, why won’t you send the bill to an inquiry to ensure that it is democratic and fair?”

“Why don’t you tell young people that what is going to happen?” she said, pointing to the cameras.

“Because now the public is paying for the money that you want to still spend during elections, and the only people that participate in elections will be union members.”

Farrell, who was briefly taken aback, responded: “That is completely untrue.”

“Unions are subject to exactly the same rules.”

The two MPs spent several minutes in a tense exchange as they debated the ins and outs of the newly-passed legislation.

As the legislation returned to the House of Representatives before passing on Thursday morning, crossbenchers could be heard yelling, “Where’s the democracy?” as they moved that the amendments be considered.

Steggall warns this will be ‘last competitive election’

Steggall warned the reforms will make it “incredibly difficult” for future independents to run against the major parties.

“This election 2025, is ultimately going to be probably, if we can’t repeal this legislation, the last competitive election where there will be a capacity for independents to come and challenge incumbents in seats,” Steggall told reporters after the debate with Farrell.

She welcomed a High Court challenge to the legislation to discuss whether “this genuinely is for the benefit of the Australian public or a dirty deal”.

Political hopefuls will only be able to take $50,000 from a single donor while donors can hand out up to $1.6 million to different political parties and candidates nationwide, although this is limited to $250,000 in any state or territory.

Labor argues the legislation will stop billionaires from backing candidates and strengthens transparency, with the donation disclosure threshold lowered to $5,000 and required to be lodged within weeks, instead of annually.

A woman in glasses and a blazer looks ahead at a man in a blue suit.

Zali Steggall, the independent member for the Sydney seat of Warringah, said she’d welcome a High Court challenge to ensure the new electoral law reforms are “for the benefit of the Australian public”. Source: AAP / Mick Tsikas

Independents say the major parties have left “loopholes” in the legislation to benefit them, referring to the two pools of funding accessible to major party candidates.

While a Labor or Liberal politician is subject to the electoral spending cap, the national war chest can be used to flood key electorates with more general party advertising.

This meant the major parties could move money from safe seats, where less would be spent, and target marginal seats with broad advertising while independents would be limited.

The deal struck by Labor and the Coalition will also result in the amount handed to candidates by the Australian Electoral Commission per vote being raised from $3 to $5 — a change minor party parliamentarians and independents say will favour incumbents, and thus the major parties.

Independent MP Helen Haines called the reform “a dupe on democracy”, vowing it will sway who she supports if either party form a minority government at the next election.

“If I’m fortunate enough to be re-elected into the next federal parliament, this so-called electoral reform will be well and truly in my line of sight to reform,” she told ABC.

— With additional reporting from AAP.