Guide for Elected Members and Agents - Cootamundra · PDF fileAuditing a declaration ... Vouching for political donations and electoral expenditure ... Elected member must not accept

Elected Member s and Of f ic ia l Agents

FUNDING AND DISCLOSURE GUIDE

Funding and Disclosure Guide for Elected Members and Official Agents 1

CONTENTS

Part A: Overview ............................................................................................................................ 3 1. Introduction...............................................................................................................................4 2. Overview of the Act ................................................................................................................5

2.1 Registration of official agents............................................................................... 5 2.2 Disclosure requirements......................................................................................... 5 2.3 Management of donations and expenditure ................................................... 6 2.4 Other ........................................................................................................................ 7

3. Responsibilities of the Authority..............................................................................................8 4. Key dates...................................................................................................................................9 5. Definitions ................................................................................................................................10

Part B: Registration of Official Agents ......................................................................................... 13 6. Appointment and registration of official agents ..............................................................14

6.1 Official agents for councillors, mayors and independent members of Parliament 14 6.2 Official agents for members of Parliament who are members of a political party 14 6.3 What are the responsibilities of an official agent?..........................................15 6.4 Who can be an official agent? .........................................................................15 6.5 Official agent training..........................................................................................16 6.6 Appointing an official agent ..............................................................................16 6.7 Elected members who do not appoint an offical agent ..............................17 6.8 Register of official agents....................................................................................17 6.9 Changing an official agent’s details ................................................................18 6.10 Cancelling an official agent’s appointment...................................................18

Part C: Political Donations And Electoral Expenditure.............................................................. 19 7. Introduction.............................................................................................................................20

7.1 What are political donations?............................................................................20 7.2 What are reportable political donations?........................................................21 7.3 What are reportable loans? ...............................................................................21 7.4 Unlawful political donations ...............................................................................21 7.5 What is electoral expenditure?..........................................................................23

8. Managing political donations and electoral expenditure .............................................25 8.1 Receiving political donations.............................................................................25 8.2 Issuing receipts and acknowledgements for reportable political donations26 8.3 Campaign accounts of elected members .....................................................27


8.4 Making payments for electoral expenditure...................................................28 9. Disclosure of political donations and electoral expenditure..........................................30

9.1 Disclosure periods for elected members ..........................................................30 9.2 What are the due dates for lodging a declaration? .....................................32 9.3 Lodging a declaration ........................................................................................33 9.4 Disclosing contributions made by an elected member ................................33 9.5 Disclosing political donations .............................................................................33 9.6 Disclosing fund-raising ventures and functions................................................35 9.7 Disclosing reportable loans.................................................................................35 9.8 Discretionary disclosures......................................................................................35 9.9 Disclosing electoral expenditure .......................................................................35

10. Auditing a declaration .....................................................................................................37 11. Vouching for political donations and electoral expenditure.....................................39

11.1 How to vouch for political donations................................................................39 11.2 How to vouch for electoral expenditure ..........................................................39

12. Other information about lodging a declaration..........................................................40 12.1 Compliance audits ..............................................................................................40 12.2 Amending a declaration ....................................................................................40 12.3 Requesting an extension of time to lodge a declaration .............................40 12.4 False statements ...................................................................................................41 12.5 Failure to lodge a declaration ...........................................................................41 12.6 Public access ........................................................................................................41

Part D: Record Keeping ............................................................................................................... 42 13. Record keeping.................................................................................................................43

13.1 Records maintained by a computer ................................................................43 13.2 Receipt book ........................................................................................................44 13.3 Acknowledgement book....................................................................................44 13.4 Cash book .............................................................................................................45 13.5 Petty cash book....................................................................................................46 13.6 Recording ‘small’ political donations ...............................................................46 13.7 Advertising records ..............................................................................................47

Part E: Appendices....................................................................................................................... 48 14. Guidelines issued by the Authority..................................................................................49 15. List of forms to be used by elected members and official agents............................51 16. Contact us ..........................................................................................................................52


PART A:

OVERVIEW


1. INTRODUCTION

The purpose of this guide is to members of the NSW Parliament, local government councillors and mayors and official agents to better understand the requirements of the Election Funding and Disclosures Act 1981 (the Act) and the Election Funding and Disclosures Regulation 2004 (the Regulation).

This guide provides information based on the processes and procedures adopted and carried out by the Election Funding Authority of New South Wales (the Authority) in the administration of the Act. It provides an explanation of legislation and should be used as a guide. It is not a substitute for the requirements of the Act and Regulation. The guide may not address every particular instance or circumstance. The Authority will provide assistance but not legal advice on specific compliance issues.

Any enquiries should be emailed to [email protected] or telephone 1300 135 736.

This publication is one in a series issued by the Authority to assist parties, elected members, candidates, groups, political donors and other interested persons to understand the provisions of the Act. The series includes:

■ Funding and Disclosure Guide for Parties and Party Agents

■ Funding and Disclosure Guide for Local Government Candidates, Groups and Official Agents

■ Funding and Disclosure Guide for State Government Candidates, Groups and Official Agents

■ Funding and Disclosure Guide for Political Donors

All forms and guides are available for download from the Authority’s website (www.efa.nsw.gov.au). A list of forms to be used by elected members is located in the Appendix of this guide.

The Act and Regulation are available for viewing on the NSW Government legislation website (www.legislation.nsw.gov.au).

Publications issued by the New South Wales Electoral Commission (the NSWEC) are also relevant for people who contest state and local government elections in NSW and are available on the NSWEC website (www.elections.nsw.gov.au ).


2. OVERVIEW OF THE ACT

The Act’s main purpose is to provide for the compulsory disclosure of the source of gifts (political donations) received and expenditure incurred for election campaigns.

The provisions for the compulsory disclosure of political donations and electoral expenditure provide transparency in election campaigning. Electors are to be made aware of the source of political donations and the amount of electoral expenditure incurred by parties, elected members, groups and candidates.

The Act requires parties, elected members, groups, candidates and major political donors to lodge declarations with the Authority disclosing political donations received and electoral expenditure incurred.

An overview of the Act as it applies to elected members is as follows:

2.1 REGISTRATION OF OFFICIAL AGENTS

■ If you are an elected member to the NSW Parliament and you are a member of a political party you are not required to appoint an official agent to act on your behalf with respect to election funding and disclosure matters. The party agent of your party is your official agent.

■ if you are an elected member to a local Council in NSW or you are an independent member of the NSW Parliament you are required to appoint an official agent before you accept $1,000 or more in political donations or incur $1,000 or more in electoral expenditure during an election period.

■ Persons who are interested in being appointed as an official agent must successfully complete an online training program provided by the Authority.

■ If you are required to appoint an official agent you must register your official agent with the Authority.

2.2 DISCLOSURE REQUIREMENTS

■ Disclosure requirements apply to all elected members of the NSW Parliament and local Councils.

■ The official agent of each elected member is required to lodge with the Authority a declaration of political donations received and electoral expenditure incurred by the elected member following each 6-month period ending 30 June and 31 December.


■ Political donations to be disclosed by an official agent are gifts made to or for the benefit of the elected member.

■ The disclosure of political donations is to include the details of all reportable political donations. Reportable political donations include single donations of $1,000 or more and multiple donations from the same source during a financial year that are, in aggregate, $1,000 or more.

■ The disclosure of political donations is to include the net or gross proceeds of each of the elected member’s fundraising ventures and functions and the details of each venture and function.

■ The disclosure of political donations is to include the disclosure of reportable loans received by the elected member.

■ The disclosure of electoral expenditure is to include the details of all advertising and printing expenditure; donations made by an elected member to a party, another elected member, candidate or group; and any other electoral expenditure.

2.3 MANAGEMENT OF DONATIONS AND EXPENDITURE

■ Elected member must not accept $1,000 or more in political donations or incur $1,000 or more in electoral expenditure during an election period unless the elected member has an official agent.

■ If an elected member is required to have an official agent, the political donations to the elected member must be accepted by the official agent and paid by the agent into the elected member’s campaign account. The political donations can only be used by the official agent to make payments from the account for electoral expenditure or for other approved purposes.

■ A receipt or acknowledgement slip must be issued by the elected member’s official agent to each person who makes a reportable political donation to or for the benefit of an elected member.

■ It is unlawful for the official agent of an elected member to accept a reportable political donation to or for the benefit of an elected member without making a record of the details of the donation.

■ It is unlawful for an official agent or elected member to accept certain indirect campaign contributions if the value of the contribution exceeds $1,000 (refer to part 7.4 of this guide).

■ It is unlawful for an official agent of an elected member to accept a reportable loan to or for the benefit of the elected member without making a record of the details of the loan.


■ It is unlawful for the official agent of an elected member or a person acting their behalf to receive a gift that is a reportable political donation unless the name and address of the person is known or is given to the official agent or a person acting on their behalf.

■ It is unlawful for a reportable political donation to be accepted by the official agent of an elected member from an entity without an ABN.

2.4 OTHER

■ Declarations lodged with the Authority and any supporting documents are public documents.

■ The records of elected members and their official agents may be subject to a random compliance audit by the Authority.

■ Penalties apply to elected members, official agents and any other person who are guilty of an offence under the Act and/or Regulations.


3. RESPONSIBILITIES OF THE AUTHORITY

The Authority is responsible for:

■ administering the provisions of the Election Funding and Disclosures Act 1981 and Election Funding Regulation 2004;

■ the registration of candidates, groups of candidates, official agents and party agents for elections;

■ receiving and processing claims for payment for parliamentary election campaigns;

■ receiving and processing declarations of political donations and electoral expenditure lodged by or on behalf of political parties, elected members, candidates, groups and political donors;

■ receiving and processing declarations of expenditure and claims for payment from the political education fund;

■ publishing the declarations of political donations and electoral expenditure on the Authority’s website;

■ making declarations of political donations and electoral expenditure available for public inspection for up to 6 years after the period in which a declaration was made; and

■ conducting random audits of declarations.

Registers of candidates, official agents and party agents are available for public inspection on the Authority’s website (www.efa.nsw.gov.au) or by contacting the Authority.

Declarations and claims for payment for parliamentary elections are available for viewing by appointment only at the Authority or on the Authority’s website.

Declarations for local government elections are available for viewing at local Council offices, by appointment only at the Authority’s office or on the Authority’s website.


4. KEY DATES

30 June 2008 Disclosure period ends for all elected members to NSW Parliament and any person who was an elected member to a local Council at any time between 27 March 2004 and 30 June 2008.

1 August 2008 New provisions come into effect with respect to the management of political donations and electoral expenditure and requirements to appoint an official agent.

25 August 2008 Declarations due for the period ending 30 June 2008 from all elected members to the NSW Parliament and any person who was an elected member to a local Council at any time between 27 March 2004 and 30 June 2008.

1 September 2008 The Authority publishes declarations lodged by elected members for the period ending 30 June 2008 on its website.

31 December 2008 Disclosure period ends for any person who was an elected member to the NSW Parliament or a local Council at any time between 1 July 2008 and 31 December 2008.

25 February 2009 Declarations due for the period ending 31 December 2008 from persons who were an elected member to the NSW Parliament or a local Council at any time between 1 July 2008 and 31 December 2008.


5. DEFINITIONS

ABN Australian Business Number.

Area A local government area for the election of a councillor to a local council.

Auditor A registered company auditor within the meaning of the Corporations Act 2001 of the Commonwealth.

Authority Election Funding Authority of New South Wales.

By-election In relation to state elections – a by-election for the Legislative Assembly.

In relation to local government elections – a by-election for a councillor (including the mayor) of a council of a local government area.

Candidate A person nominated as a candidate for election to the NSW Parliament or a local Council, and includes a person applying for registration as, or registered as, a candidate in the Register of Candidates for an election.

With respect to the disclosure of political donations and electoral expenditure, a candidate refers to any individual who accepts political donations for use solely or substantially for a purpose related to the proposed candidacy of the individual at a future state or local government election.

Disposition of property Includes any transaction that diminishes the value of a person’s own property and increases the value of the property of another person. Property includes money.

Donor A person who gives a gift to a party, elected member, candidate or group of candidates or who incurs electoral expenditure.

Elected member A councillor (including the mayor) of the council of a local government area. Elected member includes a person who, during any period after ceasing to be a councillor, is entitled to remuneration as such a councillor.

It is also includes a member of the NSW Parliament.

Election A state or local government election.

Election day The day when electors go to the polling place to vote. Sometimes referred to as polling day.

Election period The election period of an election includes the period ending 30 days after polling day for the previous general election and ending 30 days after polling day for the current election.

Electoral District A district for the election of a member to serve in the Legislative Assembly.

Electoral expenditure Expenditure for or in connection with promoting or opposing, directly or indirectly, a party or the election of a candidate or candidates or for the purpose of influencing, directly or indirectly, the voting at an election.


Endorsed Endorsed, selected or otherwise accredited to stand as a representative of a political party.

Entity An incorporated or unincorporated body, or a trustee of a trust.

Expenditure Includes any disposition of property.

General election In relation to state elections – a Legislative Assembly general election and a Legislative Council election held at the same time.

In relation to local government elections – a local government election other than a by-election.

Gift Any disposition of property made by a person to another person, otherwise than by will, being a disposition made without consideration in money or money’s worth, and includes the provision of a service (other than volunteer labour) for no consideration or for inadequate consideration.

Group In relation to state elections – a group of candidates, or part of a group of candidates, for a Legislative Council election.

In relation to local government elections – a group of candidates, or part of a group of candidates, for a local government election.

Local government election

An election under the Local Government Act 1993 for the office of councillor or mayor under that Act (other than an election of mayor by councillors).

Nomination Day In relation to an election, means the day by which all nominations in the election must be made.

Official agent In relation to an independent member of the NSW Parliament or an elected member to a local government Council – the official agent is the person that is registered in the Register of Official Agents for the elected member.

Where an official agent has not been appointed by an elected member, the elected member is deemed to be their own official agent.

In relation to an elected member to the NSW Parliament who is a member of a political party – the official agent is the party agent of the party.

Parliament The Parliament of New South Wales.

Party A body or organisation, incorporated or unincorporated, having as one of its objects or activities the promotion of the election to Parliament or a local council of a candidate or a group of candidates endorsed by it or by a body or organisation of which it forms part.

Where anything is done by, on behalf of or for the benefit of, or any property is held by, or in trust for or for the members of, a body or organisation, incorporated or unincorporated, being a body or organisation that:

forms part of a party,

is established by or under the construction of a party, or

has function conferred by or under the constitution of a party,

the thing shall be deemed to be done by, on behalf of or for the benefit of


that party or the property shall be deemed to be held by that party.

Party agent An agent for a political party.

Person Includes an individual, a corporation and a body corporate or a political organisation.

Political donation A gift made to or for the benefit of a party, elected member, group or candidate.

Registered In relation to a candidate, group or agent – registered in accordance with the Act.

Registered political party

A party registered under the Parliamentary Electorates and Elections Act 1912 or Local Government Act 1993, being a party which stated in its application for registration that it wished to be registered for the purposes of the Election Funding and Disclosures Act 1981.

State Election A Legislative Assembly general election, a Legislative Council election or a by-election.


PART B:

REGISTRATION OF OFFICIAL AGENTS


6. APPOINTMENT AND REGISTRATION OF OFFICIAL AGENTS

6.1 OFFICIAL AGENTS FOR COUNCILLORS, MAYORS AND INDEPENDENT MEMBERS OF PARLIAMENT

Councillors, mayors and independent members of Parliament must appoint an official agent and register the agent with the Authority before accepting $1,000 or more in political donations or incurring $1,000 or more in electoral expenditure during an election period.

An election period commences 30 days after polling day for the previous general election and ends 30 days after polling day for the current election.

For the purpose of determining whether an councillor or mayor is required to appoint an official agent for the 2008 local government elections the election period commenced on 26 April 2004 and ends 13 October 2008.

For the purpose of determining whether an independent member of Parliament is required to appoint an official agent for a future state election or by-election the election period commenced on 23 April 2007 and ends 30 days after the next state election or by-election.

6.2 OFFICIAL AGENTS FOR MEMBERS OF PARLIAMENT WHO ARE MEMBERS OF A POLITICAL PARTY

Members of Parliament who are members of a political party are not required to appoint an official agent. Their official agent is always the party agent of the party.

If, at any time the party does not have a party agent, the registered officer of the party is deemed to be the party agent.


6.3 WHAT ARE THE RESPONSIBILITIES OF AN OFFICIAL AGENT?

The official agent of an elected member is responsible for complying with the provisions of the Act and Regulations on behalf of the elected member. These include but are not limited to:

■ disclosing to the Authority the elected member’s political donations and electoral expenditure;

■ receiving political donations and making payments for electoral expenditure;

■ obtaining and keeping full and accurate records of the elected member’s political donations and electoral expenditure;

■ issuing receipts or acknowledgements to persons and entities who make reportable political donations to an elected member;

■ operating a campaign account on behalf of an elected member; and

■ appointing other persons to accept political donations and/or make payments for electoral expenditure from a campaign account.

6.4 WHO CAN BE AN OFFICIAL AGENT?

The following people are eligible to be an official agent for an elected member:

■ a person who is enrolled to vote in New South Wales;

■ a person who has successfully completed the online training program set by the Authority; and

■ a person who has not been convicted of an electoral offence, an offence against the Election Funding and Disclosures Act 1981, an offence involving dishonesty or an indictable offence.

Corporations cannot be official agents.

Official agents may appoint a person in writing to accept political donations and make payments for electoral expenditure from an elected member’s campaign account. These persons must comply with the requirements under the Act and Regulations.

Any persons appointed by an official agent must not have been convicted of any of the offences named above that would otherwise disqualify them from being an official agent.


6.5 OFFICIAL AGENT TRAINING

The Authority provides an online training program for prospective official agents. The training program is available on the Authority’s website (www.efa.nsw.gov.au) and takes approximately one hour to complete.

The training consists of a number of information modules with a self assessment quiz at the end of each module. The quizzes provide an opportunity for the prospective agent to reinforce their learning from each module.

The training program also consists of an assessment test of 25 multiple choice questions. Prospective agents must achieve at least a score of 20/25 in order to pass the assessment and successfully complete the training.

Persons who have not passed the assessment after 10 attempts are not eligible to be an official agent.

The following persons are not required by law to undertake the training program:

■ a Certified Practising Accountant member of CPA Australia, New South Wales Division;

■ a member of the Institute of Chartered Accountants in Australia, New South Wales Branch, who holds a Certificate of Public Practice issued by that Institute; and

■ a member of the National Institute of Accountants who holds a Public Practice Certificate issued by that Institute.

With respect to the 2008 local government elections, a person is exempted from completing the training program if the person has been approved by the Authority. The exemption ceases if the person does not complete the training program within 14 days after the approval was granted. A request in writing must be made by the person and must be received and approved by the Authority no later than 29 August 2008.

6.6 APPOINTING AN OFFICIAL AGENT

Once a person has successfully completed the training program (unless they are authorised not to undertake the training) and if the person meets all other necessary criteria under part 6.3 of this guide the elected member may appoint the person as their official agent by completing a Notice of Appointment of Official Agent (EF.672).

The appointment of an official agent is for one election only. Elected members who contest more than one election must appoint an official agent for each election.

The Authority will not accept the notice of appointment unless the elected member and the official agent have signed the form.


A person may be an official agent for more than one elected member. A separate notice of appointment form must be completed for each appointment. In this case, the official agent must keep separate records for each elected member (refer to part 13 of this guide).

Members of Parliament who are members of a political party are not required to appoint an official agent. Their official agent is the party agent of their party.

6.7 ELECTED MEMBERS WHO DO NOT APPOINT AN OFFICAL AGENT

Elected members who do not accept $1,000 or more in political donations or incur $1,000 or more in electoral expenditure during an election period are not required to appoint an official agent.

Elected members who have not appointed an official agent are deemed to be their own official agent and must comply with all requirements under the Act and Regulation.

Elected members who do not have an official agent but accept $1,000 or more political donations or incur $1,000 or more in electoral expenditure during an election period are guilty of an offence. The maximum penalty is a fine of $11,000.

6.8 REGISTER OF OFFICIAL AGENTS

For each election the Authority keeps a State Register of Official Agents and a Local Government Register of Official Agents. When the Authority receives a notice of appointment form from an elected member the official agent’s details are entered into the register and the official agent becomes a registered official agent for that elected member.

The register is a public document and includes the details of registered official agents. The information that is published on the register includes:

■ the name of each registered official agent;

■ the address of each registered official agent;

■ the occupation of each registered official agent; and

■ the name of the elected member by whom the agent was appointed.

The State Register of Official Agents and the Local Government Register of Official Agents for each election is published on the Authority’s website and is available for public inspection by appointment in the Authority’s office.


6.9 CHANGING AN OFFICIAL AGENT’S DETAILS

Registered official agents must notify the Authority if any of the following details change:

■ the name of the official agent;

■ the address of the official agent

■ the contact details of the official agent; or

■ the occupation of the official agent;

To change an official agent’s details complete and lodge a Change of Personal and Contact Details (EF.676) form and lodge it with the Authority.

When the Authority has received the form the official agent’s details will be amended in the appropriate Register of Official Agents.

6.10 CANCELLING AN OFFICIAL AGENT’S APPOINTMENT

If an official agent dies, resigns or has their appointment revoked by the elected member, the Authority must be notified in writing. The elected member is to complete and lodge a Cancellation of Appointment of an Agent (EF.677).

When the Authority has received a cancellation of appointment the official agent will be removed from the appropriate Register of Official Agents with respect to the elected member who has cancelled the appointment.

If the elected member is required to appoint a new official agent, they must complete and lodge a new Notice of Appointment of Official Agent (EF.672).

If a new agent is not appointed by an elected member, the member is deemed to be his or her own official agent.

Remember.... elected members who do not have an official agent but accept $1,000 or more political donations or incur $1,000 or more in electoral expenditure during an election period are guilty of an offence. The maximum penalty is a fine of $11,000.


PART C:

POLITICAL DONATIONS AND ELECTORAL

EXPENDITURE


7. INTRODUCTION

7.1 WHAT ARE POLITICAL DONATIONS?

A political donation is a gift made to or for the benefit of a party, an elected member, a candidate or a group of candidates.

A political donation also includes a gift made to or for the benefit of an entity or other person, where the whole or part of the gift was used or is intended to be used by the entity or person:

■ to enable them to make, directly or indirectly, a political donation or to incur electoral expenditure; or

■ to reimburse them for making, directly or indirectly, a political donation or incurring an electoral expenditure.

A gift is defined as any disposition of property made by one person (otherwise than by will) to another person being a disposition made without consideration in money or money’s worth or with inadequate consideration, and includes the provision of a service (other than volunteer labour) for no consideration or inadequate consideration.

Gifts include:

■ donations of money;

■ the provision of a service at no cost or at a cost that is less than the value of the service provided (not including volunteer labour) e.g. the provision of free or discounted printing services;

■ donations of a gift or property;

■ an amount of money, being the proceeds of the sale of a gift donated to an elected member (e.g. a gift is donated to an elected member and it is sold by the elected member at a fundraising event such as an auction); and

■ an amount paid by a person as a contribution, entry fee or other payment to entitle that person or any other person to participate in or otherwise obtain any benefit from a fund raising venture or function.

The Authority issues Guidelines with respect to items that are and are not political donations. The Guidelines are located in the appendix of this guide and are available from the Authority’s website (www.efa.nsw.gov.au) or by contacting the Authority.


7.2 WHAT ARE REPORTABLE POLITICAL DONATIONS?

A reportable political donation is a political donation of $1,000 or more to or for the benefit of a party, elected member, group or candidate.

A political donation of less than $1,000 made by an entity or person is to be treated as a reportable political donation if that and other separate political donations made by that entity or person to the same elected member within the same financial year would, if aggregated, constitute a reportable political donation.

For example, if a person makes a $700 donation to an elected member on 1 October 2007, it is not a reportable political donation. If the same person makes a $500 donation to the same elected member on 31 March 2008, then the both donations become reportable political donations.

7.3 WHAT ARE REPORTABLE LOANS?

A loan is an advance of money, the provision of credit or any other transaction that in substance affects a loan of money.

A reportable loan is a loan that, if it had been a political donation, would be a reportable political donation that is required to be disclosed (i.e. $1,000 or more).

A loan from a financial institution is not a reportable loan. A financial institution is an entity whose principal business is the provision of financial services or financial products, and includes banks, credit unions and building societies.

7.4 UNLAWFUL POLITICAL DONATIONS

Any person who knowingly receives one or more of the following unlawful political donations is guilty of an offence. The maximum penalty is a fine of $11,000.

RECEIVING A REPORTABLE POLITICAL DONATION WITHOUT KEEPING A RECORD It is unlawful for a person to accept a reportable political donation unless the person:

■ makes a record of the details of the donation that are required to be disclosed in a declaration; and

■ provides a receipt or acknowledgement to the donor for the donation.


This requirement does not apply to political donations that are not reportable political donations at the time they are made (i.e. donations of less than $1,000).

A political donation of less than $1,000 may become a reportable political donation if separate donations by the same person in the same financial year total $1,000 or more.

For example, if a person makes a $700 donation to an elected member on 1 October 2007, it is not a reportable political donation. If the same person makes a $500 donation to the same candidate on 31 March 2008, then both donations become reportable political donations.

PROHIBITION ON RECEIVING CERTAIN INDIRECT CAMPAIGN CONTRIBUTIONS It is unlawful for a person to make or accept any of the following indirect campaign contributions to an elected member if the value of the gift exceeds $1,000 or the total value of the things provided or done by the same person over the same financial year exceeds $1,000:

■ the provision of office accommodation, vehicles, computers or other equipment for no consideration or inadequate consideration for use solely or substantially for election campaign purposes;

■ a person (other than the official agent, candidate or group) making a full or part payment of electoral expenditure for advertising or other purposes that was incurred or is to be incurred by the elected member (or an agreement to make such a payment; and

■ a person waiving of all or part of a payment of electoral expenditure for advertising that was incurred or is to be incurred by an elected member.

Electoral expenditure for advertising is taken to be incurred by an elected member if the advertising is authorised by the elected member.

Indirect campaign contributions that are prohibited do not include the following:

■ provision of volunteer labour; and

■ anything provided or done by a party for the elected members endorsed by the party in accordance with arrangements made by the party agent.

PROHIBITION ON DONATIONS FROM ENTITIES WITHOUT AN ABN It is unlawful for a person to accept a reportable political donation unless it is made by an individual or it is made by an entity that has an ABN.


PROHIBITION ON RECEIVING GIFTS OF AN UNKNOWN SOURCE It is unlawful for a person to accept a reportable political donation unless:

■ the name and address of the person who made the donation are known to the person accepting the donation; and

■ when the donation is made, the person making the donation gives to the person accepting the donation his or her name and address; and

■ the person accepting the donation has no grounds to believe that the name and address given are not the true name and address of the person making the donation.

PROHIBITION ON RECEIVING LOANS UNLESS THE DETAILS ARE RECORDED It is unlawful for a person to receive a reportable loan (other than a loan from a financial institution) unless the person makes a record of the following:

■ the terms and conditions of the loan; and

■ the name and address of the entity or other person making the loan.

Separate loans made to the elected member by one entity or person within a disclosure period are to be aggregated and treated as a single loan.

Each transaction where credit is provided by the use of a credit card is taken to be separate loan.

7.5 WHAT IS ELECTORAL EXPENDITURE?

Electoral expenditure is expenditure incurred for or in connection with promoting or opposing, directly or indirectly, a party or the election of a candidate or candidates or for the purpose of influencing, directly or indirectly, the voting at an election.

Electoral expenditure includes:

■ expenditure on advertisements on radio, television, the internet, cinemas, newspapers, billboards, posters, brochures, how-to-votes and any other printed election material;

■ expenditure on holding election rallies;

■ expenditure on the distribution of electoral material;

■ expenditure on the travel and accommodation of a candidate for an election;


■ expenditure on research associated with election campaigns;

■ expenditure incurred in raising funds for an election;

■ expenditure on stationery, telephones, messages, postage and electronic transmission;

■ expenditure incurred in employing staff engaged in election campaigns;

■ expenditure on the auditing of a declaration; and

■ any other expenditure classified as electoral expenditure by the Authority or in the Regulations.

Expenditure for the following purposes is not electoral expenditure:

■ payment of the nomination deposit by an elected member for an election;

■ factual advertising of meetings to be held for the purpose of selecting persons for nomination as candidates for election;

■ factual advertising of meetings for organisational purposes of parties, branches of parties, or conferences, committees or other bodies of parties or branches of parties; and

■ factual advertising of any other matter involving predominantly the administration of parties or conferences, committees or other bodies of parties or branches of parties.

The Authority issues Guidelines with respect to items that are and are not electoral expenditure. The Guidelines are located in the appendix of this guide and are available from the Authority’s website (www.efa.nsw.gov.au) or by contacting the Authority.


8. MANAGING POLITICAL DONATIONS AND ELECTORAL EXPENDITURE

The requirements in this part of the guide were introduced into the Act in June 2008 and took effect on 1 August 2008.

Where an elected member does not have, or is not required to have, an official agent the elected member is deemed to be their own official agent.

Members of Parliament who are members of a political party are not required to appoint an official agent. Your official agent is always the party agent of your party.

8.1 RECEIVING POLITICAL DONATIONS

A political donation to or for the benefit of an elected member can only be accepted if:

■ the elected member has an official agent (unless either the total donations or expenditure during an election period are less than $1,000); and

■ the political donation is made to the official agent.

When a political donation is made to or for the benefit of an elected member the official agent must:

■ make a record of the details of the political donation (refer to part 13 for information about record keeping);

■ deposit the political donation into the elected member’s campaign account (refer to part 8.3 for information); and

■ in the case of a reportable political donation, issue a receipt or acknowledgement slip to the donor (refer to part 8.2 for information).

Political donations can only be used to incur electoral expenditure or to reimburse a person for incurring electoral expenditure (or for any other approved purpose under the Act).


8.2 ISSUING RECEIPTS AND ACKNOWLEDGEMENTS FOR REPORTABLE POLITICAL DONATIONS

When a person or entity makes a reportable political donation to or for the benefit of an elected member, the official agent is required to make a record of the donation and issue a receipt or acknowledgement to the donor.

Remember…. small donations may become reportable political donations and official agents must write out a receipt for these donations. For example, if a person makes a $700 donation to an official agent on 1 October 2007, it is not a reportable political donation at that time. If the same person makes a $500 donation to the same elected member on 31 March 2008, then both donations become reportable political donations.

A receipt must be issued for each reportable political donation that is in the form of money. Each receipt must show the following:

■ a receipt number;

■ the date of the receipt;

■ the amount of money made to or for the benefit of the elected member;

■ the form in which the money was received (e.g. cash, cheque, credit card);

■ the name, address and ABN (if any) of the donor; and

■ the purpose of the payment.

An acknowledgement must be issued for each reportable political donation that is a non monetary gift or service. Each acknowledgement slip must show the following:

■ an acknowledgement slip number;

■ the date of the acknowledgement;

■ the value of the gift or service donated to or for the benefit of the elected member;

■ a description of the gift or service;


■ the purpose for which the donation was made.

Each receipt and acknowledgement must contain the following statement:

“If you make a political donation or incur electoral expenditure of $1,000 or more, you must complete and lodge a declaration with the Election Funding Authority in accordance with the Election Funding and Disclosures Act 1981. A political donation includes a contribution or entry fee or an annual or other


subscription. You must also disclose a political donation of less than $1,000 if the total amount of political donations made by you in respect of the same party (or associated parties), elected member, group, candidate or person in the same financial year is $1,000 or more. Penalties apply for failing to lodge a declaration.”

The Authority provides receipt and acknowledgement books to elected members and official agents upon request.

The receipt and acknowledgement books are in triplicate form. The original is issued to the person who made the political donation; the duplicate is to be kept by the official agent of the elected member for 3 years; the triplicate is kept in the book and lodged with the elected member’s declaration.

8.3 CAMPAIGN ACCOUNTS OF ELECTED MEMBERS

Elected members who receive $1,000 or more in political donations or incur $1,000 or more in electoral expenditure during an election period are required to have a campaign account.

An election period commences 30 days after polling day for the previous general election and ends 30 days after polling day for the current election.

For the purpose of determining whether an elected member is required to have a campaign account for the 2008 local government elections the election period commenced on 26 April 2004 and ends 13 October 2008.

For the purpose of determining whether an elected member is required to have a campaign account for a future state election the election period commenced 23 April 2007 and ends 30 days after the future state election.

Elected members who do not receive $1,000 or more in political donations or incur $1,000 or more in electoral expenditure during an election period are not required to have a campaign account. In these cases the elected member or their official agent must keep full and accurate records in accordance with the Act and Regulations (refer to part 13 of this guide for information).

WHAT KIND OF ACCOUNT CAN I USE? A campaign account must be a separate account with a bank, building society or credit union. Campaign accounts must not be the personal account of an elected member.

The campaign account must belong to the elected member and the official agent must be authorised to operate the account. Elected members must not operate the campaign account (i.e. deposit political donations, make withdrawals or payments).


WHAT IS A CAMPAIGN ACCOUNT USED FOR? The campaign account can only be used for the following purposes:

■ deposit monetary political donations to or for the benefit of the elected member;

■ deposit funds the elected member wishes to contribute to their campaign;

■ make payments for electoral expenditure incurred by or on behalf of the elected member;

■ reimburse an elected member for money they paid into the account;

■ make political donations to other candidates, groups or elected members who are members of the same political party as the elected member who owns the account; and

■ for the purposes of expenditure incurred in connection with parliamentary or council duties of the elected member to whom the account belongs or in connection with community activities.

WHAT HAPPENS TO MONEY LEFTOVER IN THE ACCOUNT? Any money that is remaining in a campaign account after an elected member ceases to be an elected member and no longer requires the account is to be paid:

■ in the case of an elected member who is a member of a political party – the funds are to be paid to the political party the elected member was a member of; or

■ in all other cases the funds are to be paid to a charity nominated by the elected member.

8.4 MAKING PAYMENTS FOR ELECTORAL EXPENDITURE

Payments for electoral expenditure can only be made using funds in the elected member’s campaign account. Payments can only be made by the elected member’s official agent or a person appointed in writing by the official agent.

Elected members are not allowed to make any payments for electoral expenditure for their own election or re-election.

Official agents must keep full and accurate records for electoral expenditure. Always make sure you receive an invoice or receipt for the each expenditure item. The invoice or receipt should clearly show the nature of the expense and that the expense was for the elected member.


Copies of all invoices and receipts are to be kept by the official agent as well as samples of all advertising and printing (refer to part 13 for information about record keeping).


9. DISCLOSURE OF POLITICAL DONATIONS AND ELECTORAL EXPENDITURE

The official agent of each elected member is required to lodge a declaration disclosing the political donations received and electoral expenditure incurred by the elected member following each six month period ending 30 June and 31 December.

If, during any six month period ending 30 June or 31 December, a person is an elected member of NSW Parliament or a local Council then the official agent must lodge a declaration following that period.

Any person who was local government councillor or mayor at any time between 27 March 2004 and 30 June 2008 is required to lodge a declaration for that period no later than 25 August 2008.

Where an elected member does not have an official agent they are deemed to be their own agent.

9.1 DISCLOSURE PERIODS FOR ELECTED MEMBERS

A declaration by or on behalf of an elected member must disclose all political donations made to or for the benefit of the elected member and all electoral expenditure incurred during a disclosure period.

The first disclosure period for elected members to NSW Parliament commenced on 24 April 2007 and ended on 30 June 2008.

The commencement date of the first disclosure period for a councillor or mayor of a local government council is determined by the date of the last election the member was elected. The disclosure period ends for all members of local Councils on 30 June 2008. Find the election in the table below where you were last elected:

ELECTION DATE ELECTION DISCLOSURE PERIOD

COMMENCES

27/03.2004 2004 local government general elections 27/04/2004

26/06/2004 Cooma Monaro deferred election 27/07/2004

26/06/2004 Eastern Capital City Regional deferred election 27/07/2004

26/06/2004 Greater Argyle deferred election 27/07/2004

26/06/2004 Greater Queanbeyan deferred election 27/07/2004

26/06/2004 Liverpool Plains deferred election 27/07/2004


26/06/2004 Tumut deferred election 27/07/2004

26/06/2004 Upper Lachlan deferred election 27/07/2004

26/06/2004 Yass Valley deferred election 27/07/2004

24/07/2004 Eurobodalla by-election 24/08/2004

24/07/2004 Snowy River deferred election 24/08/2004

25/09/2004 Gwydir deferred election 26/10/2004

25/09/2004 Tamworth Regional deferred election 26/10/2004

04/12/2004 Glen Innes Severn deferred election 4/01/2005

04/12/2004 Uralla B ward by-election 4/01/2005

11/12/2004 Greater Taree by-election 11/01/2005

12/02/2005 Camden South ward by-election 15/03/2005

05/03/2005 Bathurst Regional deferred election 5/04/2005

05/03/2005 Clarence Valley deferred election 5/04/2005

05/03/2005 Greater Hume deferred election 5/04/2005

05/03/2005 Hurstville Penshurst ward by-election 5/04/2005

05/03/2005 Upper Hunter deferred election 5/04/2005

05/03/2005 Warrumbungle deferred election 5/04/2005

14/05/2005 Brewarrina by-election 14/06/2005

25/06/2005 Greater Hume by-election 26/07/2005

25/06/2005 Temora by-election 26/07/2005

09/07/2005 Moree Plains by-election 9/08/2005

13/08/2005 Wollondilly C ward by-election 13/09/2005

22/10/2005 Liverpool Plains by-election 22/11/2005

12/11/2005 Tenterfield E ward by-election 13/12/2005

17/12/2005 Hunters Hill North ward by-election 17/01/2006

18/02/2006 Harden by-election 21/03/2006

25/02/2006 Blue Mountains Third ward by-election 28/03/2006

11/03/2006 Ku-ring-gai Roseville ward by-election 11/04/2006

18/03/2006 Muswellbrook by-election 18/04/2006

25/03/2006 Mid Western Regional deferred election 25/04/2006


08/04/2006 Eurobodalla by-election 9/05/2006

08/04/2006 Kiama by-election 9/05/2006

29/04/2006 Ashfield South ward by-election 30/05/2006

01/07/2006 Griffith by-election 1/08/2006

05/08/2006 Bathurst Regional by-election 5/09/2006

19/08/2006 Dubbo by-election 19/09/2006

26/08/2006 Clarence Valley by-election 26/09/2006

23/09/2006 Ashfield South ward by-election 24/10/2006

23/09/2006 Murray by-election 24/10/2006

04/11/2006 Tenterfield D ward by-election 5/12/2006

16/12/2006 Hornsby C ward by-election 16/01/2007

16/12/2006 Liverpool Plains by-election 16/01/2007

10/02/2007 Narromine by-election 13/03/2007

17/02/2007 Dungog C ward by-election 20/03/2007

17/02/2007 Hornsby C ward by-election 20/03/2007

19/05/2007 Waverley ward by-election 19/06/2007

19/05/2007 Wentworth by-election 19/06/2007

From 1 July 2008, all elected members have six monthly disclosure obligations for the periods ending 30 June and 31 December each year.

The six monthly disclosure obligations for an elected member continue until there is a six month period where the person is no longer an elected member or they are no longer receiving a remuneration for being a member.

9.2 WHAT ARE THE DUE DATES FOR LODGING A DECLARATION?

Declarations for the period ending 30 June are required to be lodged with the Authority no later than 25 August.

Declarations for the period ending 31 December are required to be lodged with the Authority no later than 25 February.


9.3 LODGING A DECLARATION

An elected member’s declaration must be lodged using the Declaration of Political Donations and Electoral Expenditure by an Elected Member, Candidate or Group (EF.678) form issued by the Authority.

Where no political donations were made to or for the benefit of the elected member and no electoral expenditure was incurred a ‘nil’ declaration is required.

A declaration will not be accepted by the Authority unless:

■ the declaration is audited by a registered company auditor (except where the Authority provides an exemption); and

■ the political donations and electoral expenditure disclosed in the declaration are vouched for correctly.

9.4 DISCLOSING CONTRIBUTIONS MADE BY AN ELECTED MEMBER

Where an elected member makes a contribution to his or her own election campaign the amount paid by the elected member and the terms on which the payment was made are to be disclosed in a declaration.

Where an elected member is a member of a group for the purpose of contesting an election and the elected member makes a contribution to the group the contribution is to be disclosed as a political donation from the elected member to the group. The contribution is to be disclosed by the official agent for the group as either a ‘small’ political donation or a reportable political donation.

9.5 DISCLOSING POLITICAL DONATIONS

The political donations that are to be disclosed in the declaration are gifts made to or for the benefit of the elected member during the disclosure period.

DISCLOSING ‘SMALL’ POLITICAL DONATIONS ‘Small’ political donations received by the elected member are those that are less than $1,000 each or multiple donations from the same source in one financial year that total less than $1,000.

The following information about ‘small’ political donations must be disclosed on the declaration:

■ the total number of persons who made small political donations; and


■ the total amount or value of the small political donations received during the disclosure period.

DISCLOSING REPORTABLE POLITICAL DONATIONS The following details about each reportable political donation made to or for the benefit of the elected member during the disclosure period are to be disclosed in the declaration:

■ the date the donation was made;

■ the name of the donor;

■ the residential address of the donor (in the case of an individual) or the address of the registered or other official office of the donor (in the case of an entity);

■ the amount or value of the donation;

■ the ABN of the donor (in the case of an entity); and

■ an indication as to whether the donation is a cash gift or a donation in kind.

Remember… donations that are less than $1,000 may be reportable political donations. For example, if a person makes a $700 donation to an elected member on 1 October 2007, it is not a reportable political donation. If the same person makes a $500 donation to the same elected member on 31 March 2008, then both donations become reportable political donations because the donations in total over a financial year are $1,000 or more.

In the case where a reportable political donation is made by an unincorporated association you are required to disclose the name of the association and the names and addresses of the members of the executive committee of the association.

In the case where a reportable political donation is made out of a trust fund or out of the funds of a foundation you are required to disclose the names and addresses of the trustees of the fund or of the funds of the foundation and the title or other description of the trust fund or the name of the foundation.

In the case where political donations are made by corporations that are related to each other (as determined by the Corporations Act 2001 of the Commonwealth) those donations are to be taken to be made by a single corporation.

Remember… political donations to be disclosed include cash donations, gifts, services, the sale of tickets or other items relating to a fundraiser.


9.6 DISCLOSING FUND-RAISING VENTURES AND FUNCTIONS

A declaration lodged by an official agent on behalf of an elected member is to include the following details about the member’s fund-raising ventures and functions during the disclosure period:

■ either the net or gross proceeds of each venture and function and an indication as to whether the amount is the net or gross proceeds;

■ the name and nature of each venture and function; and

■ the date or period in which each function was held.

9.7 DISCLOSING REPORTABLE LOANS

A declaration lodged by an official agent on behalf of an elected member is to include the following details about reportable loans made to the member during the disclosure period:

■ the date the loan was made;

■ the name of the lender;

■ the residential address of the lender (in the case of an individual) or the address of the registered or other official office of the lender (in the case of an entity); and

■ the amount of the loan; and

■ the ABN of the lender (in the case of an entity);

9.8 DISCRETIONARY DISCLOSURES

A declaration lodged by an official agent on behalf of an elected member may include the details of ‘small’ political donations even though they may not be reportable political donations.

9.9 DISCLOSING ELECTORAL EXPENDITURE

A declaration lodged by an official agent on behalf of an elected member is to include the details of all electoral expenditure incurred by the elected member during the disclosure period.


The following details must be included for each item of expenditure with respect to advertising and printing:

■ the date the expenditure was incurred;

■ the name of the supplier;

■ a description of the expense; and

■ the amount of the expense inclusive of GST.

The following information must be disclosed for each political donation made by the elected member to another elected member, group or candidate from the same party during the disclosure period:

■ the date the political donation was made;

■ the name of the elected member, candidate or group to whom the political donation was made; and

■ the amount or value of the political donation.

If an elected member is a member of a group for the purposes of contesting an election and they make a donation to their group, the donation is to be disclosed as electoral expenditure by the elected member. The group’s declaration is to disclose the amount as a political donation received by the group from the elected member.

For all other electoral expenditure incurred by the elected member during the disclosure period only the amount of expenditure is required to be disclosed for each of the following categories:

■ expenditure on holding election rallies;

■ expenditure on the distribution of electoral material;

■ expenditure on a candidates travel and accommodation for an election;

■ expenditure on research associated with election campaigns;

■ expenditure incurred in raising funds for an election;

■ expenditure on stationery, telephones, messages, postage and electronic transmissions;

■ expenditure for employing staff engaged in election campaigns;

■ expenditure in respect of auditing a declaration; and

■ other electoral expenditure.


10. AUDITING A DECLARATION

A declaration will not be accepted by the Authority unless it has been audited by a registered company auditor (except where an exemption is provided by the Authority).

The Authority provides an exemption to the audit requirement in the following cases:

■ where an elected member has a ‘nil’ declaration; or

■ in the case of members of Parliament, the member is not entitled to receive public funding, or

■ in the case of an elected member of a local government Council, the member either received less than $2,500 in political donations or incurred less than $2,500 in electoral expenditure during the disclosure period.

For the purposes of obtaining an auditor for declarations to be lodged no later than 25 August 2008 the Authority will accept the declaration without an auditor’s signature as long as the declaration is subsequently audited with the elected member’s second declaration which is due to be lodged no later than 25 February 2009.

An auditor’s certificate accompanies the declaration form and states the following:

“I, (name of auditor) state:

■ I was given full and free access at all reasonable times to all accounts, records, documents and papers of the official agent and of the elected member relating directly or indirectly to any matter required to be disclosed under Part 6 of the Election Funding and Disclosures Act 1981,

■ I duly examined such of those accounts and documents as I consider material for the purpose of giving the certificate,

■ I received all information and explanations that I asked for with respect to any matter required to be set out in the declaration, subject to any qualifications specified, and

■ I have no reason to think that any statement in the declaration is not correct.

Registered officers and deputy registered officers of registered parties, elected members, candidates, official agents and party agents are not permitted to audit a declaration.

Official agents and elected members must keep all accounts, records, documents and papers that relate directly or indirectly to any matter required to be set out in a declaration to disclose a true and fair view of the transactions of the candidate or group and to enable an auditor conveniently and properly


issue and sign the audit certificate. The maximum penalty for failing to do so is a fine of $2,200.


11. VOUCHING FOR POLITICAL DONATIONS AND ELECTORAL EXPENDITURE

A declaration will not be accepted by the Authority unless the political donations and electoral expenditure disclosed in the declaration are vouched for correctly.

11.1 HOW TO VOUCH FOR POLITICAL DONATIONS

The following items must be submitted with a declaration:

■ the triplicate copy of each receipt issued to each person and entity who made a reportable political donation in the form of money to or for the benefit of the elected member; and

■ the triplicate copy of each acknowledgement slip issued to each person and entity who made a reportable political donation in the form of providing of a gift or service to or for the benefit of the elected member.

11.2 HOW TO VOUCH FOR ELECTORAL EXPENDITURE

A copy of each invoice or receipt with respect to advertising and printing expenditure must be attached to a declaration.

The Authority will disallow invoices or receipts that do not clearly show the nature of the items of expenditure or which do not clearly show that the elected member incurred the expenditure.


12. OTHER INFORMATION ABOUT LODGING A DECLARATION

12.1 COMPLIANCE AUDITS

The Authority may conduct a random compliance audit on a declaration or any amendments to a declaration and the record keeping of an official agent or elected member.

12.2 AMENDING A DECLARATION

An official agent or elected member may amend a declaration by lodging an amended declaration with the Authority.

An amendment includes an alteration, omission, addition or substitution to any part of the declaration.

An amended declaration must be audited by a registered company auditor (unless the Authority provides an exemption).

To make an amended declaration the official agent or elected member is to complete and lodge a Notice of Amendment to a Declaration (EF.681) form with the Authority.

An amended declaration must include the required vouching for any political donations and electoral expenditure that were not provided with the original declaration.

12.3 REQUESTING AN EXTENSION OF TIME TO LODGE A DECLARATION

The Authority may grant an extension of time for an elected member or official agent to lodge a declaration if he or she is unable to complete and lodge the declaration by the due date.

It is the responsibility of the official agent or elected member to apply for an extension by completing and lodging an Application for Extension of Time to Lodge (EF.690) form. The Authority will advise the official agent or elected member whether or not the extension has been granted and the new date for lodgement. The due date for lodging a declaration cannot be extended by more than 8 weeks.


The Authority may, as a condition of granting an extension of time to lodge a declaration require the official agent to lodge a declaration containing the disclosures that the official agent has at the time.

The Authority will not consider granting an extension of time to lodge a declaration unless the written request is received by the Authority before the due date for lodging a declaration.

12.4 FALSE STATEMENTS

A person who knowingly makes a false statement in a declaration, or makes a statement that the person does not reasonably believe is true, is guilty of an offence.

A person who knowingly makes a false statement in a request for an extension of the due date for lodging a declaration, or makes a statement in the request for an extension that the person does not reasonably believe is true, is guilty of an offence.

The maximum penalty is a fine of $22,000 or 12 months imprisonment, or both.

An elected member who gives or withholds information to or from their agent, knowing that it will result in the agent making a false statement in a declaration is guilty of an offence.

The maximum penalty is a fine of $22,000.

12.5 FAILURE TO LODGE A DECLARATION

A person who is required to lodge a declaration but fails to do so by the due date is guilty of an offence.

The maximum penalty is a fine of $22,000.

12.6 PUBLIC ACCESS

Declarations and amendments made by an official agent or elected member are kept by the Authority for at least 6 years after the period to which the declaration relates.

Declarations are available for public inspection by appointment only at the Authority’s office during ordinary business hours. Charges apply for providing copies of declarations.


PART D:

RECORD KEEPING


13. RECORD KEEPING

Official agents and elected members are required to keep proper records to ensure the accurate and complete disclosure of political donations and electoral expenditure.

Where an elected member does not have an official agent, the member is responsible for keeping full and accurate records.

All accounting records for an election campaign must be kept for at least 3 years following an election. Failure to do so is an offence under the Act. The maximum penalty is a fine of $11,000.

The official agent or elected member must keep the following accounting records in respect of an election campaign:

■ receipt book;

■ acknowledgement book;

■ cheque book;

■ petty cash book; and

■ cash book, or a receipts cash book and payments cash book.

The maximum penalty for not keeping these items is a fine of $2,200.

13.1 RECORDS MAINTAINED BY A COMPUTER

If an official agent or elected member chooses to maintain accounting records using a computer they must ensure that:

■ the records comply with the requirements set out in this part of the guide to the extent that those requirements may reasonably be expected to be complied with in relation to computer records; and

■ entries appear in chronological sequence; and

■ entries are sequentially numbered in a manner that enables the completeness of the records to be conveniently verified; and

■ no amendment to the particulars of a transaction already recorded can be made other than by a separate transaction effecting the amendment; and

■ a back-up copy of all records that are less than 3 years old is made at least once a month; and


■ the most recent back-up copy is kept in a separate location so that any incident that might adversely affect the records would not affect the back-up copy.

13.2 RECEIPT BOOK

If a reportable political donation in the form of money is received, the official agent must issue a receipt from a receipt book for the amount received. Each receipt must be signed by the official agent or a person authorised by the official agent.

A receipt must be cancelled by writing the word “CANCELLED” across the receipt. Cancelled receipts must be kept in the receipt book.

The receipt comes in triplicate form. The original is given to the donor, the duplicate is to be kept by the official agent and the triplicate is kept in the receipt book and is lodged with the declaration of political donations and electoral expenditure. Each receipt must contain the following information:

■ a receipt number;

■ the date of the receipt;

■ the amount of money received;

■ the form in which the money was received (e.g. cash, cheque etc);


■ the purpose of the payment.

In addition, each receipt must contain the following statement advising the donor of their obligation to disclose political donations and electoral expenditure:

“If you make a political donation or incur electoral expenditure of $1,000 or more, you must complete and lodge a declaration with the Election Funding Authority in accordance with the Election Funding and Disclosures Act 1981. A political donation includes a contribution or entry fee or an annual or other subscription. You must also disclose a political donation of less than $1,000 if the total amount of political donations made by you in respect of the same party (or associated parties), elected member, group, candidate or person in the same financial year is $1,000 or more. Penalties apply for failing to lodge a declaration.”

13.3 ACKNOWLEDGEMENT BOOK

If a reportable political donation in the form of a gift or service is received, the official agent must issue an acknowledgement from an acknowledgement book


for the value of the gift received. Each acknowledgement must be signed by the official agent or a person authorised by the official agent.

An acknowledgement must be cancelled by writing the word “CANCELLED” across the acknowledgement. Cancelled acknowledgements must be kept in the acknowledgement book.

The acknowledgement comes in triplicate form. The original is given to the donor, the duplicate is to be kept by the official agent and the triplicate is kept in the book and is lodged with the declaration of political donations and electoral expenditure. Each acknowledgement must contain the following information:

■ an acknowledgement number;

■ the date of the acknowledgement;

■ the value of the gift donated;

■ a description of the gift;


■ the purpose for which the donation was made.

In addition, each acknowledgement must contain the following statement advising the donor of their obligation to disclose political donations and electoral expenditure:

“If you make a political donation or incur electoral expenditure of $1,000 or more, you must complete and lodge a declaration with the Election Funding Authority in accordance with the Election Funding and Disclosures Act 1981. A political donation includes a contribution or entry fee or an annual or other subscription. You must also disclose a political donation of less than $1,000 if the total amount of political donations made by you in respect of the same party (or associated parties), elected member, group, candidate or person in the same financial year is $1,000 or more. Penalties apply for failing to lodge a declaration.”

13.4 CASH BOOK

The cash book must be a book or books, where the sheets are consecutively numbered.

The consecutive numbers of receipts issued or cheques drawn must be shown on the respective sheets.

If the loose-leaf principle is used, separate sheets may be kept for the receipts cash book and the payments cash book, and it is not necessary to number the sheets consecutively.


As soon as practicable after a transaction takes place, the official agent must enter:

■ on the receipts side of the cash book, on the receipts cash sheets or in the receipts cash book—particulars of all money received by way of political donations, and

■ on the disbursements side of the cash book, on the payments cash sheets or in the payments cash book—particulars of all money disbursed by the party by way of electoral expenditure.

At the end of each month, the cash book or books must be balanced and the balance carried forward to the commencement of the next month and to a ledger account provided for that purpose.

At the end of each month:

■ the entries in the cash book or books must be compared with the bank, credit union or building society statement, and

■ amounts credited to the bank, credit union or building society account and appearing in the relevant statement for which no receipt had been written and amounts debited to the bank, credit union or building society account and appearing in the relevant statement for which no cheque had been drawn must be entered in the cash book or books.

Any necessary reconciliation (showing the balance in the bank, credit union or building society account as indicated on the relevant statement, and adding any money received but not banked and deducting any cheques drawn but not presented for payment) must be entered in the cash book at the end of the entries for the month.

13.5 PETTY CASH BOOK

A petty cash book must be used to record cash payments for items of expenditure of $50 or less.

13.6 RECORDING ‘SMALL’ POLITICAL DONATIONS

Official agents and elected members are to keep a record of ‘small’ political donations (i.e. less than $1,000) in order to disclose in a declaration the total value of small donations received and the total number of persons who made the small donations during the disclosure period.

Remember…. a ‘small’ donation becomes a reportable political donation if the donor made more than one donation to the same elected member in a financial year where the total value of those donations was $1000 or more. The full details of all reportable political donations must be recorded and disclosed in a declaration.


13.7 ADVERTISING RECORDS

Official agents and elected members are required to keep video tapes or films with respect to all television and cinema advertising for a period of 12 months after the advertisement was last shown. Official agents and elected members must make the video tape or film available to the Authority upon request. Maximum penalty is a fine of $2,200.

Official agents are required to keep the following advertising material in respect of which electoral expenditure is incurred by an elected member for at least 3 years after the advertisement was last printed, published or broadcast:

■ the text from radio and internet advertising;

■ a full page of the newspaper or periodical containing an advertisement; a statement identifying the advertisement; a listing of the name of each newspaper and periodical where the advertisement was published; the size of the advertisement; and the date of each publication; and

■ a copy of any other printed items.

The maximum penalty for failing to keep these records is a fine of $11,000.


PART E:

APPENDICES


14. GUIDELINES ISSUED BY THE AUTHORITY

■ Candidates, groups, elected members and parties are required to use the forms published by the Authority in relation to registration, changes to particulars, claims for payment, declarations and general administration purposes.

■ The Act currently provides that an amount of $1,500 may be claimed for auditors’ fees in connection with claims and declarations for a party and $500 for groups and candidates. Any amounts above these figures in respect of auditors’ fees must be disclosed in a declaration however the claim must be limited to $1500 for parties and $500 for groups and candidates.

■ Where a candidate pays some or all of the costs of advertising expenses incurred by a party endorsing him or her, that payment must be disclosed as a contribution to a party. Only expenditure incurred over and above what has been disclosed as a donation can be claimed as campaign expenditure.

■ If a candidate uses a vehicle not owned by him or her during an election campaign, unless a payment is made by the candidate, the value of the use of the vehicle must be shown as a political contribution.

■ The investment of funds donated or raised for election campaign purposes is a fund raising venture and the net interest earned is to be declared as a contribution.

■ Where a voter intention survey is carried out on behalf of a candidate and no charge is made for the service the value of the survey is to be declared as a political contribution.

■ Where a referendum is being conducted concurrently with a general election expenditure incurred by a candidate or party, in advising the electorate how to vote in the referendum is not expenditure with respect to the election campaign of the candidate or party.

■ A donation made by one candidate to the campaign fund of another candidate is not an election campaign expense of the candidate making the donation.

■ Expenditure incurred in a fund raising activity is not claimable as an election campaign expense unless the activity resulted in a loss. Any loss incurred for a fund raising activity for election campaign purposes is an election campaign expense.

■ Expenditure incurred for the following purposes are not considered election campaign expenditure:

o Purchase of flowers and other gifts to office staff;


o Parking fines imposed on candidates during their election campaign;

o Amounts paid for annual subscription to newspapers or periodicals;

o Where a candidate suffers a loss of pay caused by his attendance at campaign activities, that loss of pay is not an election campaign expense;

o Where a candidate incurs expenditure on an advertisement recommending the election to Parliament of a candidate in another electorate the expenditure incurred is not an election campaign expense;

o Expenditure incurred for a celebration or social function after the close of the poll;

o A deposit paid by a candidate when lodging his or her nomination for election;

o Annual motor vehicle registration and insurance fees in respect of a vehicle owned by a candidate;

o Telephone accounts for candidates private telephone outside the election campaign period;

o Fees paid by a candidate to scrutineers for services at the count after polling day;

o Non-promotional clothing purchased to be worn by a candidate in his or her campaign;

o Candidates’ personal services such as hairdressing expenses;

o Payments made for child care;

o Expenses incurred by a candidate or his campaign director in attending party seminars, "Meet the Leader" functions etc; and

o Any amount specified in a contract or agreement whereby payment is contingent upon receipt of funding under the Act.

■ Expenditure incurred for the following purposes are considered election campaign expenditure:

o Where a candidate publishes a newspaper with the primary object of promoting his own election to Parliament and sells advertising space in the newspaper to offset the cost of the publication the net expenditure incurred is election campaign expenditure;

o Interest payable on a loan obtained by a party, group or candidate to finance an election; and

o Where a number of candidates share an advertisement the benefit is regarded as being equally shared. The value of the share of a candidate featured in the advertisement is an election campaign expense of that candidate.


15. LIST OF FORMS TO BE USED BY ELECTED MEMBERS AND OFFICIAL AGENTS

The following table provides a list of forms referred to in this guide and issued by the Authority to be used by elected member and official agents. Forms are available from the Authority’s website www.efa.nsw.gov.au or by contacting the Authority.

FORM NAME PURPOSE

Notice of Appointment of Official Agent (EF.672)

To appoint an official agent for a candidate or group.

Change of Personal or Contact Details (EF.676)

To notify the Authority of a change in a elected member’s or official agent’s personal or contact details.

Cancellation of Appointment of an Agent (EF.677)

To notify the Authority that an official agent has died, resigned or their appointment has been revoked.

Declaration of Political Donations and Electoral Expenditure by an Elected Member, Candidate or Group (EF.678)

To disclose political donations and electoral expenditure.

Notice of Amendment to a Declaration (EF.681) To amend a declaration.

Request for Extension of Time to Lodge (EF.682)

To request an extension of time to lodge a declaration.


16. CONTACT US

Postal Address:

The Secretary

Election Funding Authority of New South Wales

GPO Box 832

Sydney NSW 2001

Phone: 1300 135 736 or 02 9290 5999

Fax: 02 9290 5991

Email: [email protected]

Web: www.efa.nsw.gov.au

Documents

Guide for Elected Members and Agents - Cootamundra · PDF fileAuditing a declaration ... Vouching for political donations and electoral expenditure ... Elected member must not accept