The proposed legislation seeks to establish caps on candidate donations and overall campaign spending, particularly targeting the excessive expenditures seen in recent elections.

The Australian government is moving forward with new legislation aimed at limiting campaign spending and donations to address concerns about the influence of wealthy individuals in politics.

Special Minister of State Don Farrell announced that a bill will be introduced to parliament next week, with hopes of passing it before the end of the parliamentary year.

Labor is optimistic about gaining bipartisan support from the Coalition for these electoral reforms, which have been in development for over two years.

Under the new rules, political parties will be limited to spending a maximum of $90 million nationally, with individual electorates capped at $800,000.

Candidates will face a cap on individual donations of $20,000 per year, while total campaign spending for each candidate will also be limited to $800,000.

To enhance transparency, political parties will be required to disclose their funding sources monthly, with more frequent disclosures during election periods.

The legislation will also mandate real-time reporting of donations over $1,000, a significant change from the current system where disclosures can take up to 18 months.

The new rules are set to take effect in 2026, allowing time for political parties and the Australian Electoral Commission to prepare for the changes.

However, the proposed caps may face legal challenges, particularly from figures like Clive Palmer, who has previously spent heavily on campaigns.

Concerns have been raised by independent and crossbench MPs about the potential disadvantages these reforms may impose on smaller parties and candidates.

Farrell emphasized that these reforms are essential for tackling the influence of big money in politics and enhancing the integrity of Australian democracy.