High Court Scraps Victorian Political Donation Laws Ahead of State Election
Australia's High Court has ruled Victoria's political donation laws unconstitutional, removing caps and disclosure requirements just months before the November state election.
The unanimous decision struck down an entire section of the state's electoral act that capped individual donations at $4,970 per term but exempted major parties through "nominated entities".
The ruling follows a legal challenge by two independent candidates, Paul Hopper and Melissa Lowe, who contested the 2022 state election and plan to run again.
They argued the exemption for major parties created an unfair advantage and burdened the constitutionally implied freedom of political communication.
The court invalidated not only the donation caps and exemptions but also provisions banning foreign donations and requirements for reporting political donations and campaign expenditure.
This leaves Victoria without limits or disclosure obligations unless new laws are introduced before the election.
The decision has significant implications for the upcoming state election and may influence similar campaign finance laws in South Australia and at the federal level.
Victoria's laws, introduced in 2018 and effective from the 2022 election, allowed the Labor, Liberal, and National parties to receive unlimited donations through nominated entities registered before July 2020, while independents and newer entities were subject to the cap.
The exemption system was criticized for benefiting the three major parties and creating a loophole that risked drowning out independent voices.
Integrity watchdogs welcomed the ruling, describing it as a correction to an unfair system.
The Victorian government expressed disappointment, calling the ruling a setback for transparency and stating it is considering its options.
The opposition also voiced concern over the lack of regulation ahead of the polls.
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