There are two definitions that are relevant to disclosing electoral expenditure and determining what electoral communications need to be authorised for the purpose of Part XXA of the Commonwealth Electoral Act 1918 (Electoral Act).

• Electoral expenditure is expenditure incurred for the dominant purpose of creating or communicating electoral matter.
• Electoral matter is matter communicated or intended to be communicated for the dominant purpose of influencing the way electors vote in a federal election.

Where expenditure is incurred to create or communicate electoral matter, in addition to other reasons, the dominant purpose of the expenditure must be considered.

In general, any expenditure incurred by a political entity, significant third party, associated entity, member of the House of Representatives (MP) or Senator in relation to a federal election will be electoral expenditure.

Communications that have the dominant purpose of educating their audience, raising awareness of, or encouraging debate on a public policy issue are not considered electoral matter.

The Explanatory Memorandum contains some helpful examples of electoral matter and electoral expenditure.

• Factsheet: Electoral matter and electoral expenditure

The Electoral Act restricts foreign donations. A foreign donor is defined as:

• a body politic of a foreign country, or part of such a body politic;
• a body politic of a part of a foreign country, or part of such a body politic;
• a foreign public enterprise;
• an entity (whether or not incorporated) that does not meet any of the following conditions:
  • the entity is incorporated in Australia;
  • the entity’s head office is in Australia;
  • the principal place of activity of the entity is, or is in, Australia;
• an individual who is neither an elector, nor an Australian citizen, nor an Australian resident, nor a New Zealand citizen who holds a Subclass 444 (Special Category) visa.

Restrictions on receiving gifts or donations from foreign donors apply to the following people or entities:

• political entities (registered political parties, candidates and senate groups);
• MPs and Senators;
• significant third parties;
• associated entities;
• third parties.

Foreign donors are restricted from making gifts to political entities, MPs or Senators, significant third parties, associated entities and third parties.

• Factsheet: Foreign donations

The Electoral Act limits electoral expenditure and fundraising for electoral expenditure by foreign persons or entities that do not have a connection to Australia.

A foreign campaigner means a person or entity that is:

• a body politic of a foreign country, or part of such a body politic;
• a body politic of a part of a foreign country, or part of such a body politic;
• a foreign public enterprise;
• an entity (whether or not incorporated) that does not meet any of the following conditions:
  • the entity is incorporated in Australia;
  • the entity’s head office is in Australia;
  • the principal place of activity of the entity is, or is in, Australia;
• an individual who is neither an elector, nor an Australian citizen, nor an Australian resident, nor a New Zealand citizen who holds a Subclass 444 (Special Category) visa.

A foreign campaigner is limited from directly incurring electoral expenditure or fundraising for the purpose of incurring electoral expenditure of $1,000 or more in a financial year.

Charities that incur electoral expenditure (at or above the disclosure threshold) to influence voters in a federal election are subject to the requirements of the Electoral Act. This type of expenditure can create an obligation to register and report to the AEC.

• Disclosure obligations for charity organisations

Section 302CA - Immunities relating to the giving and receipt of gifts

Donors, gift recipients and the agents of gift recipients are provided immunities from state and territory electoral laws in relation to the offering, seeking, giving, receipt, retention and use of gifts expressly for federal purposes.

A federal purpose means the purpose of incurring electoral expenditure, or creating or communicating electoral matter.

An expression of purpose could be conveyed by various methods including for example by correspondence, electronic messages, information on a donation form, correspondence or a receipt that confirms the purpose.

Receipt of gifts of money

The effect of the amendment is that, with regard to the receipt of gifts of money, despite any state or territory electoral law a regulated entity, or a person on behalf of a regulated entity, may receive a gift of money if:

• the money is deposited into a federal account as soon as practicable after the money is received; and
• the money is not transferred or withdrawn out of the account except:
1. to use the money for federal purposes; or
2. to transfer the money to another federal account.

A regulated entity, in relation to section 302CA of the Electoral Act, is a political entity, significant third party or third party.

A federal account means an account where:

• The only amounts deposited into the account are amounts to be used only for a federal purpose; and
• The only amounts withdrawn or transferred from the account are amounts:
1. withdrawn or transferred for a federal purpose; or
2. transferred to another federal account.

Gifts from donors which are expressly given for state or territory electoral purposes, or unconditional gifts that the recipient intends to allocate to state or territory electoral purposes, must not be placed into a federal account.

Receipt of non-monetary gifts

Despite any state or territory electoral law, a regulated entity, or a person on behalf of a regulated entity, may use or authorise the use of non-monetary gifts for federal purposes if the gift has been continuously kept for federal purposes since it was received.

Section 314B - Immunities relating to disclosure

Donors, gift recipients and the agents of gift recipients are provided immunities from state and territory electoral disclosure laws in relation to the amounts and expenditure.

A regulated entity, in relation to the disclosure of amounts given under section 314B, is a political entity, significant third party, a third party or an associated entity.

Disclosure of gifts of money

Despite any state or territory electoral law, a regulated entity is not required to disclose under that law an amount of money, or information relating to amounts of money including gifts or loans, if the amount received by, or for the benefit of, a regulated entity is expressly provided for federal purposes.

Disclosure of non-monetary gifts

Despite any state or territory electoral law, a regulated entity is not required to disclose under that law the value of a non-monetary benefit, or information relating to a non-monetary benefit, if the benefit received by, or for the benefit of, a regulated entity is expressly provided for federal purposes.

Further detailed explanation can be found in the Revised Explanatory Memorandum.

The Electoral Act provides a definition of entities that are impacted by financial disclosure obligations. Some of these terms may not be how the individual or organisation commonly identify themselves. You can find out more:

• Definition of financial disclosure entities

To complete an annual return or an election return, there may be terms and expressions that require further explanation.

• Financial disclosure FAQs