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Electoral Finance Act 2007 - detail

Mar 26, 2009 | News

Following the repeal of the Electoral Finance Act 2007 on 1 March 2009, the information in this page has been superseded.  It is left here for completeness.

The Electoral Finance Act 2007, Broadcasting Amendment (No 2) Act 2007, and Electoral Amendment Act 2007 received Royal Assent on 19 November 2007 and are published on the New Zealand Legislation website (where the Electoral Act 1993 and Broadcasting Act 1989 can also be found).

Summaries of changes

 

[319 New election laws in force] lists key areas of change which are particularly relevant from 1 January 2008, to the general public, and to those who might by covered by new "Third Party" provisions.

A more detailed list of changes follows:

Big changes to the donation regime

  • New regime for donations protected from disclosure. Anyone wanting to make a donation over $1,000 without the party or the public knowing their identity [323 must send the donation to the Electoral Commission] who then makes payment to the party and cannot disclose identity of donors. This is not available for candidates.
  • There are new rules of disclosure when a person makes a contribution towards a donation.
  • No anonymous donation can be over $1,000. Any that are received over this amount must be forfeited to the crown bank account.
  • Overseas donations over $1,000 must also be forefeited 
  • Contributions that make up a donation have to be declared to the financial agent and in returns if over the declaration threshold of $1,000.
  • Recording as a donation the difference between commercial value and undervalued and over valued goods and services and of loans.

For people wanting to be involved in the campaign who are not a registered party or candidate

  • Anyone wanting to spend more than $12,000 on an election campaign [130 must list as a third party] and cannot spend more than $120,000. A listed third party must have a financial agent. If the campaign relates to just one electorate then must list if spend over $1,000.
  • Listed third parties have to file an election expense return, and may need an auditor's report depending on how much they spend.
  • Listed third parties have to file a donation return and must comply with donation regulation.
  • Definition of election advertising that needs to comply with regulations.

Substantial changes to election campaign and expense return rules

  • The period covered is longer - from the 1st of January to polling day if the election is held in the third year of the election cycle.
  • New definitions of election advertisements to include those that do not mention the name of the candidate or party .
  • Election advertisements can only be published on the authority of a financial agent or the party secretary/candidate/third party.
  • Definition of publishing that covers almost all means of sending a message to the public. Excluded from the definition of a published election advertisement are all non-advertising in the media, not for profit blogs and newsletters sent to the members of an organisation.
  • Definition provided of reasonable market value that has to be included in the return for materials and advertising space that is provided free or at discounted rates.
  • New apportionment rules for all types of shared election advertising.
  • Election expense thresholds may be increased in line with CPI changes, by Order in Council.

For everyone involved in the campaign

  • Each candidate, party and third party must have a financial agent who is now responsible for authorising advertising, incurring, paying, and reporting on election expenses, and accepting donations.

Specifically for registered political parties

  • Donations over $20,000 have to be declared to the Electoral Commission within 10 working days.
  • Changes to election campaign rules and expense returns
    • new definition of what is to be covered in election expense return,
    • exemption of communications sent ‘by an MP in their capacity as an MP’.

Specifically for electorate candidates

  • New definition of a candidate advertisement, to now include those that do not mention the name of the candidate.
  • [cat:107 Online guidance is available]

 

Changes relating to offences

  • Increase in period in which prosecution can be brought.
  • Electoral Commission and Chief Electoral Office have discretion is referring matters to the police. Matters are not to be referred if considered “so inconsequential that there is no public interest in reporting those facts to the New Zealand Police”.
  • Increased penalties for anyone convicted of a corrupt or illegal practice.

Changes to the Broadcasting Act

  • Complaints about election ads on TV and radio go directly to the Broadcasting Standards Authority, rather than to the broadcaster.
  • Removal of political appointees to Electoral Commission for Broadcast Allocation purposes.
  • Note, that there has been no change to the definitions and regulation of elections ads on TV and radio (election programmes in the Broadcasting Act).

 

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