House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Administrative Services, Senator the Honourable Nick Bolkus)

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In June 1989 the Joint Standing Committee on Electoral Matters (JSC) presented its Report No. 4 ("Who pays the piper calls the tune - minimising the risks of funding political campaigns"),which flowed from its Inquiry into the Conduct of the 1987 Federal Election and the 1988 Referendums.

This legislation amends the Broadcasting Act 1942, the Radiocommunications Act 1983, the Commonwealth Electoral Act 1918 and the Referendum (Machinery Provisions) Act 1984 to give effect to the decisions made by the Government in response to the Committee's recommendations.

The amendments made by the Bill to the Broadcasting Act 1942 (the Broadcasting Act) prohibit the broadcasting of political advertisements at all times. The ban will apply in respect of all three levels of Government and in respect of the Australian Broadcasting Corporation (ABC) and Special Broadcasting Service (SBS) as well as licensed broadcasters.

The exceptions to the ban on political advertising will be:

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exempt matter (relating to natural disasters, civil or military disasters, electoral information, advertisements for goods and services, job vacancies, tender applications, promotion of the activities of the ABC and SBS, public hearings or, subject to the regulations, notices or announcements required by law to be broadcast);

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other than during election periods, matter relating to public health (other than promotion of particular public health organisations or programs); and

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one policy launch of up to 30 minutes which may be carried for each political party represented in the relevant legislature before the election, to be carried free of charge on written request by the chief executive officer of the party.

The Bill also bans advertising by Commonwealth departments and authorities during the immediate run up to a Commonwealth election or referendum, and by Territory departments and authorities during the run-up to Territory elections. These bans do not apply to advertising consisting of exempt matter. All governments will be subject to the ban on political advertising. It will also prevent broadcasters showing, on their own initiative, advertisements which contain political matter.

The Bill is not intended to restrict bona fide reporting or commentary on political events by broadcasters.

The Bill will not restrict the rights of individuals with legal standing to seek injunctive or other relief for a breach of the provisions. By virtue of section 129 of the Broadcasting Act, the provisions will be conditions of every licence or permit granted under that Act and, by virtue of section 132 of the Broadcasting Act, a breach will also constitute an offence. The Australian Broadcasting Tribunal (Tribunal) will consider breaches of conditions in the context of its licensing functions and offences will be evaluated in accordance with the normal arrangements with the Director of Public Prosecutions. However, the Bill will also give the Tribunal the power to seek injunction-like orders from the Federal Court to enforce, or prevent likely breaches of, the proposed new Part IIID of the Broadcasting Act.

The Bill also reaffirms the power of the ABC to determine to what extent and in what manner political or controversial matter will be broadcast by the Corporation, subject only to the specific requirements of the Broadcasting Act as proposed to be amended.

The Bill (Part 4) also makes it a condition of multipoint distribution station licences under the Radiocommunications Act 1983 that licensees should comply with the bans on political and government advertising as if they were broadcasters.

The amendments made by the Bill to the Commonwealth Electoral Act 1918 are designed to:

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require the full disclosure of all income, expenditure and debts of registered political parties;

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require the disclosure by third parties (including auxiliaries of political parties) of any gifts made by them to political parties or auxiliaries thereof;

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require third parties to disclose income and expenditure which occurs within a disclosure period if it relates to any Commonwealth election, rather than just income and expenditure relating to the election within that disclosure period;

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empower the Australian Electoral Commission (AEC) to conduct spot audits of political parties registered under the Commonwealth Electoral Act 1918 to test the parties' compliance with their obligations under the election funding and financial disclosure provisions of the Act;

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require the AEC to publish a list of third parties (ie persons other than political parties, branches or divisions of political parties, candidates or members of Senate groups) who in its view are or may be required to furnish funding and disclosure returns under the Act;

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empower the AEC to conduct spot audits upon any third parties so listed;

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provide that future AEC reports on the funding and disclosure provisions of the Act must contain a record of all spot audits;

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provide that publication by the AEC of details obtained in the course of spot audits of third parties will be restricted to information relevant to the commission of an offence under the Act;

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enable the AEC to issue supplementary funding and disclosure reports at any time;

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create an offence of hindering or interfering with the free exercise by a person of his or her right to make a gift to a political party;

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remove the disparity between public funding entitlements of Senate and House of Representatives campaigns by increasing the Senate entitlement to that of the House of Representatives; and

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ensure that the result of an election will not be overturned by Court of the Disputed Returns by reason of a breach of the Broadcasting Act 1942 or the Radiocommunications Act 1983.

The amendment made by the Bill to the Referendum (Machinery Provisions) Act 1984 is designed to ensure that the result of a referendum will not be overturned by the Court of the Disputed Returns by reason of a breach of the Broadcasting Act 1942 or the Radiocommunications Act 1983.