Deadline for disclosure of donations exceeding $20k - reminder to parties
1. A return of party donation must be filed with the Electoral Commission within 10 working days of receiving a donation that:
- exceeds $20,000; or
- when aggregated with all donations from the same donor in the preceding 12 months, exceeds $20,000.
2. These returns of party donations are governed by section 54 of the Electoral Finance Act 2007.
3. Unlike annual returns, which cover donations received during the 12 months of a calendar year, section 54 returns cover donations received during the 12 month period preceding the receipt of the most recent donation from a donor.
4. Donations must be aggregated and included in a section 54 return regardless of whether:
- they have already been reported in the party's annual return; or
- they were exempt from reporting in the annual return (because in the relevant calendar year donations from the same donor did not exceed $10,000 in aggregate).
5. The requirement to provide a section 54 return applies from the date the Electoral Finance Act came into effect on 20 December 2007. However where one or more donations are received from a donor after the Act came into effect, those donations must be aggregated with donations from that donor over the preceding 12 months (including those received before the Act came into effect) and a section 54 return filed if the aggregate exceeds $20,000.
6. Donations (in excess of $20,000 or which contribute to an aggregate of more than $20,000) are only exempt from reporting in a section 54 return if they have already been the subject of a section 54 return.
Any financial agent who fails, without reasonable excuse, to file a return as required by section 54 commits an offence. Financial agents are on notice that contraventions of these requirements will be referred to the Police unless the Commission considers there is a reasonable excuse for failing to comply or that the offence is so inconsequential there is no public interest in reporting the facts to the Police. Each instance will be considered on its merits.
Therefore we urge all party financial agents to take reasonable steps to ensure that:
- processes are in place to identify when donations from the same donor exceed $20,000 in aggregate;
- a return is filed within 10 working days of receiving any donation in excess of $20,000 or when the donation, when aggregated with all other donations received from the same donor in the preceding 12 months, exceeds $20,000;
- all persons who are involved in the administration of party donations are aware of the requirement to file a return for such donations, whether those persons are active in central office or in branches and whether they be permanent staff, temporary staff, volunteers.
Background
The Electoral Commission considered a return of party donation received from the same donor exceeding $20,000. The return included three donations from the same donor which were received on 6 May 2007, 3 April 2008, and 28 April 2008 respectively. The return was filed on 1 May 2008, which was within 10 working days of receipt of the 28 April donation, however when aggregated the donations exceeded $20,000 when the 3 April 2008 donation was received.
The Commission determined that the return was not filed within 10 working days of receipt of the donation which, when aggregated with all other donations in the preceding 12 months, exceeded $20,000.
The financial agent provided the Commission with an explanation of the reasons for filing the return late and the steps he has taken to ensure such omissions will not recur. A major factor contributing to the failure to file on time was that a temporary employee had not been made aware of the requirement to file a return for donations in excess of $20,000 (whether alone or in aggregate).
The Commission decided that, in the circumstances, there was a reasonable excuse for failing to file the return within the timeframe of 10 working days. Therefore on this occasion no offence had been committed. A copy of the decision is published [here].
This reminder is being sent to party financial agents because financial agents are responsible for filing returns of party donations. The Commission is also sending the reminder to party secretaries because party secretaries are deemed to be financial agents in the absence of financial agents or if a financial agent has not been appointed.
Please ensure this reminder is also brought to the attention of everyone in your party who is involved in the administration of party donations, whether those persons are active in central office or in branches and whether they be permanent staff, temporary staff, volunteers.