🗞️Why a poll cash cap won’t halt independents
By Phoebe Hayman, La Trobe University
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An election-eve deal by the two major federal political parties on political donations and spending — which at first glance further entrenches a system that disadvantages independents and minor parties — is unlikely to stop the rise of the underdog.
The Labor and Liberal parties’ February deal on election reforms won’t apply for this federal election in May but it mirrors state election laws across Australia that effectively allow larger parties a notable spending advantage, while limiting it for individual candidates.
It’s apparent such reforms are designed to combat the threat major parties face from independents and minor parties, who are clearly disadvantaged by the changes. They condemned them as a ‘stitch-up’ and undemocratic.
Yet, analysis shows that while these changes have consequences for representation and hinder campaigning efforts by independents, they are unlikely to halt the consistent rise of successful independent campaigns.
The independent movement has already shown it is no flash in the pan and its continued success against the odds shows there’s more than spending at work.
Their community campaigns prioritise fun and flexibility for volunteers and have built up national networks and deep connections within their communities.
Offering voters an alternative to parties and partisanship, they have steadily drawn votes away from the major parties in state and federal elections for decades.
The money trail
Independents have raised and spent more across successive elections, particularly since 2016.
The high-water mark reached in 2022 was not just because of Climate 200 — the crowdfunded organisation that backed candidates who supported a science-based approach to dealing with climate change, such as the so-called ‘teal’ independents.
Candidates raise a lot of money on their own. Even among the 2022 teal candidates more than half the money each campaign raised was through direct donations.
The new laws will place a cap on donations as well as caps for party spending. Individuals will be restricted to donating a maximum of $20,000 per candidate in a calendar year.
Campaigns will be limited to spending $90 million in an election campaign. The restrictions target supply and demand. Donors — whether an individual, business or trade union — will face a donation cap of $600,000 across all parties and candidates. While candidates will be unable to raise more than $800,000.
The reforms give larger parties a notable advantage, particularly in spending.
However, successful Australian independents have relied on more than just money, tapping into local issues, voter anger at the incumbent or their party — or with parties in general — and a significant local profile.
Building a public profile has been the biggest challenge for independent candidates, who do not benefit from a party brand telling voters what they stand for.
Yet this aspect is vital for independent candidates and was the focus of independent campaign efforts in 2022.
These ranged from billboards at intersections, volunteers in t-shirts out doorknocking through to advertisements on social media.
Such efforts require money and the proposed changes to election funding may therefore affect independent candidates’ chances of electoral success.
Campaign costs can be higher for regional independents. The sheer size of rural electorates often makes it more difficult to conduct cheaper volunteer-based activities such as face-to-face voter contact.
Returning to the regions
The teal wave of 2022 was an urban phenomenon, but independents in Australia have traditionally come from outside the capital cities. In 2025, they aim to return to the regions.
Climate 200 has recently announced the complete list of independent campaigns it will back this federal election. Of the 35 campaigns receiving backing, 19 are running in rural or regional electorates.
This time, Climate 200 is not the only source of fundraising support available to rural independents.
The Regional Voices Fund, chaired by former NSW Rural Woman of the Year Lorraine Gordon and featuring key figures from the Voices of Indi group that supported Cathy McGowan’s campaign, has already provided support to 13 regional independent candidates.
Information from the two groups suggests that funding support will be significant.
Putting the changes in context
Australia’s electoral systems make independents possible, but successive reforms by major parties across state and federal politics have worked to make their election harder.
Preferential voting itself concentrates votes through preference flows to major parties.
The latest changes will bring federal laws more in line with the states, most of which have far stronger restrictions on donations and spending.
Similarly, recent reforms at the state level have aimed to curb independent and minor party success by focusing on limiting donations rather than spending.
In Victoria, laws limit the amount of donations parties and candidates receive but leave channels open for parties to receive money through membership dues and uncapped funds from their registered nominated entities, such as the Liberal Party’s Cormack Foundation.
Four independent candidates from the last Victorian election are challenging the state’s donation and expenditure laws in the High Court, arguing that these policies limit political free speech. The outcome could have consequences for state and federal laws.
South Australia has taken things further. Late last year the Malinauskus Labor government struck a world-first deal to ban political donations outright. In exchange, public funding will be increased.
Analysts say that major parties will be the overwhelming beneficiaries of these increased public funds.
Independent success against the odds
Passing reforms to respond to the threat major parties feel from independent and minor party candidates is not new. Yet it is more than money that has driven the rise of independents.
Their success has grown and is based on their connections and profile within their communities, particularly in rural electorates.
Independents have persisted and their numbers have increased across state and federal parliaments for decades, despite the multiple disadvantages the electoral system throws at them.
Just seven independent MPs were elected to federal parliament between 1970 and 2000. There are currently 11 independents sitting with possibly more to come next month.
This is linked to the growing organisation within communities, as locals develop networks and movements that can rival or outstrip their major party rivals.
Phoebe Hayman is a PhD candidate in the Department of Politics, Philosophy and Media at La Trobe University and a teaching specialist in politics and media at The University of Melbourne. Originally published under Creative Commons by 360info™.
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