Victoria is facing a flood of 'unlimited dark money' after Labor failed to secure agreement with the Liberals or Greens on donation reforms, months before the November state election. The state currently has no caps on political donations or disclosure requirements following a High Court ruling that struck down the previous laws last month.
The High Court found the entire section of the Electoral Act governing political donations was unconstitutional, leaving the Victorian Electoral Commission unable to distribute public funding and opening the door to large donations, including from foreign sources. Premier Jacinta Allan vowed to fast-track reforms, but negotiations have stalled over key details such as donation caps, treatment of nominated entities, and whether laws should be retrospective.
Greens leader Ellen Sandell criticised the delay, saying 'unlimited dark money from overseas, billionaires and corporations can flow to political parties to influence our state election.' Liberal sources indicated they would reject retrospective laws and seek a higher donation cap. Crossbench MP David Limbrick warned that without safeguards, Victoria is vulnerable to foreign interference, calling it a 'national security risk.'
Animal Justice MP Georgie Purcell backed reform but argued the previous cap disadvantaged minor parties. The Australia Institute and Centre for Public Integrity have called for urgent restoration of disclosure and public funding rules, with broader consultation and an independent review. The bill is not expected to be introduced before June.
