
Tuesday, 18 October 2022 Legislative Council Page 7202
amendments that needs to be addressed. The law governing the conduct of elections and ancillary matters such as
electoral funding and election expenditure needs to strike a careful balance between opposing dangers to our
representative democracy. It should be regularly reviewed and, where justified, amended to ensure that it remains
fit for purpose. That is the intent of the Electoral Legislation Amendment Bill 2022.
The Joint Standing Committee on Electoral Matters plays a significant role in the task of reviewing
electoral legislation. The committee's report on the conduct of the 2019 State election made several
recommendations, which were subsequently accepted by the Government and are reflected in the bill currently
before the Chamber. One of those recommendations—recommendation 6—was to amend the Electoral Funding
Act 2018 to provide that the applicable cap for electoral expenditure by third-party campaigners for State election
campaigns is to be set at $1,288,500 for those registered under the Act before the capped State expenditure period,
and $644,300 in any other case, with these amounts to be adjusted for inflation as provided for in schedule 1 to
the Act. That, of course, gave rise to some anxiety.
Application of the inflation provisions would result in election expenditure by a registered third-party
campaigner being capped at $1,389,900 for the 2023 State election capped State expenditure period—a substantial
contribution to an election campaign. Item [11] of schedule 3 to the bill would give effect to this recommendation.
I note that the capped State expenditure period for the 2023 State election commences on 1 October 2022. These
capped amounts would replace the existing caps of $500,000 and $250,000, which were ruled invalid by the High
Court in Unions NSW v New South Wales, decided on 29 January 2019. In that case, significantly, the joint opinion
by Chief Justice Kiefel and others at paragraph 89 affirmed the validity of setting expenditure caps for third party
campaigners at a lower threshold than set for political parties and candidates:
Professor Crisp long ago explained the "crucial distinction" between political parties and "interest-groups" of the kind which might
now meet the definition of third-party campaigners in the EF Act as lying "in the different purpose of their respective commitments
to political activity and the different directions that their activities take". The functional distinction important for present purposes is
that, during a period leading up to an election, a political party which aims to form government must be in a position to communicate
on the whole range of issues of potential concern to voters whereas a third-party campaigner can concentrate its resources on a single
issue of concern to it. To be equipped not only to communicate on a range of issues but also to respond meaningfully to third-party
campaigners, the political party needs to be able to marshal greater resources.
That is a fairly straightforward understanding of why the cap set for a political party should be higher than the cap
for a third-party campaigner. I note that, notwithstanding a submission from the evidently well-cashed-up New
South Wales Nurses and Midwives' Association for the third-party campaigner cap to be set at $2 million, no
objection to the $1,288,500 cap was made by the Opposition in the other place.
For the 2015 State election, the nurses' union reported election expenditure of around $908,000, the
Electrical Trades Union reported expenditure of $794,000 and Unions NSW reported expenditure of $720,000.
For that same election, five union third-party campaigners ran a coordinated campaign against privatisation,
including electricity privatisation, entitled "NSW Not For Sale", with a combined total expenditure of
approximately $1.1 million. Expenditure on a similar scale for the 2023 State election would be permitted under
the Electoral Funding Act 2018 as it would be amended by this amendment. That is, any single third-party
campaigner registered before 1 October 2022 would be legally entitled to expend up to $1.389 million between
that date and 25 March 2023 on a campaign with the object, or principal object, of having a particular party,
elected member or candidate elected, or opposing the election of a particular party, elected member or candidate.
And any group of third-party campaigners could pool their more limited resources to run together—or, to
use the language of the Act, "act in concert"—a campaign with the object, or principal object, of having a particular
party, elected member or candidate elected, or opposing the election of a particular party, elected member or
candidate, provided that their joint expenditure did not exceed $1,389,900. Removing the acting-in-concert
provision altogether, which this amendment proposes to do, would necessarily nullify the legitimate effect of the
third-party campaigner caps, as recognised by the High Court, by allowing an unlimited number of third-party
campaigners to each contribute $1,389,900 to a single coordinated campaign.
Whether it is 10 unions or 10 mining companies or 10 companies controlled by a single businessman, it
would be possible for a single, united campaign to outspend any one political party running candidates for all
lower House seats and for the Legislative Council. This runs the risk of a loud, well-funded, single-issue campaign
effectively drowning out other voices and distorting the processes of representative democracy. Unions NSW, the
NSW Nurses and Midwives' Association and the Electrical Trades Union spent a combined $2.422 million in the
2015 State election campaign. With their mates from the Rail, Tram and Bus Union [RTBU], they are already
colluding on the year of the strike, with Mr Claassens emailing his members that the RTBU will "fight this
Government with everything we've got" and not allow "a moment of peace between now and the next election".
Removing the acting-in-concert provisions from the Electoral Funding Act would ensure that the good
electors of New South Wales would not have a moment of peace between now and 25 March 2023 from a raucous,