Independent Candidates in Victoria Win Lawsuit Over Political Donation Limits

With just seven months to go before Victoria’s upcoming election, the Supreme Court has struck down the state’s political donation and disclosure regulations.

Lawyers for independent candidates Paul Hopper and Melissa Lowe argued that Victoria’s $4,970 cap on individual campaign donations was unfair. This is because the state operates a separate system that allows the three major parties—the Labor Party, the Liberal Party, and the National Party—to receive large donations from “designated entities.” The two independent candidates argued that this practice risks allowing the voices of the wealthy to drown out others and imposes a burden on the freedom of political speech guaranteed by the Constitution.

The ruling did not overturn the provisions directly related to the donation cap and the designated entity system, but rather struck down an 89-page chapter of the Victorian Electoral Act. That chapter also covered the prohibition of foreign donations, reporting obligations for political donations, and campaign expenditures.

Victoria’s Premier Allen stated that the court’s ruling exposes Victorian politics to the threat of “dark money” and said the government would take immediate action, within the scope of the High Court’s ruling, to restore the integrity of Victoria’s electoral system.

Integrity watchdogs, who had previously criticized “loopholes” in Victoria’s election laws, welcomed the ruling; however, the state government and the opposition expressed concern that the state would lack a mechanism to regulate political donations ahead of the November general election.