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Election '22 - Changes to independent candidate company structures
The last sitting week of this Parliament saw a spate of amendments to the Electoral Act (Cth). A key change is that any company (or trust) which exists largely to benefit one or more independent candidates will need to register as an associated entity. Here is what that means:
What is an associated entity?
Associated entities aren’t new. Before the amendments any entity which operated wholly or to a large extent for the benefit of a political party was an associated entity. Some examples include the Animal Justice Foundation + Animal Justice Party, trade unions + Labor and liberal fundraising clubs + Liberal Party.
The amendments just broaden the definition to ensure that an entity which is operating for an individual rather than a party is still caught by the disclosure obligations.
In practice:
- Any entity which has been set up to find or support an independent candidate will need to register as an associated entity of that candidate.
- The entity name will appear on the AEC’s publicly available transparency register next to the name of the candidate.
- Once the amendment bill receives assent (likely to occur in mid-December 2021) an entity cannot incur electoral expenditure until they have registered as an associated entity.
- While you should register as soon as possible, you have 90 days to register after the day on which the amendment bill receives assent.
- For entities which existed last financial year, you will need to lodge an associated entity disclosure form for FY20/21 (see form here). That needs to be lodged within 30 days of you registering as an associated entity.
Associated entities have higher foreign donor disclosure obligations (which many websites already comply with) and there are some other changes to the definition of electoral expenditure for associated entities to be aware of. Updates on these aspects will follow.
Do all "Voices for" groups need to register as an associated entity?
Not necessarily. We know that some exist primarily to give their local community a democratic voice rather than backing any one candidate. You only need to register as an associated entity if a large part of what your group does falls into one of the following three categories:
- fundraising amounts above the disclosure threshold for the purposes of the candidate’s campaign; or
- creating or communicating electoral matter for the candidate; or
- otherwise helping the candidate prepare for the election.
Remember even if you don’t need to register as an associated entity, you may still be a third party so check your compliance obligations.
New to the Bubble? Welcome! It is Marque Lawyers' political law digest. A semi-regular update on what is happening in the world of electoral law and our thoughts on what can change. Some earlier editions live here, here and here.
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