POLITICAL FINANCE Annual Report Report of the operation of Part VI of the Electoral Act 1907 for the period ended 30 June 2009 WESTERN AUSTRALIAN Electoral Commission WESTERN AUSTRALIAN Electoral Commission Hon. N F Moore MLC Minister for Electoral Affairs 4th Floor, London House 216 St Georges Terrace PERTH WA 6000 Dear Minister In accordance with section 175ZG of the Electoral Act 1907, I submit for your information and presentation to Parliament the report on the operation of Part VI of the Electoral Act 1907 for the period 1 July 2008 to 30 June 2009. Yours sincerely Warwick Gately AM ELECTORAL COMMISSIONER WESTERN AUSTRALIAN ELECTORAL COMMISSION 2 Contents Executive Summary 4 Section 175E of the Act 15 Summary of disclosures through 2008-2009 4 Background 15 2008-2009 Annual Returns by Political Parties and Summary of activity 16 Associated Entities 4 Concluding observations 17 2008 State General Election 4 2009 Fremantle by–election 4 Appendices 18 Part VI of the Electoral Act 1907 disclosures 4 Appendix 1 – 2008-2009 Political finance and disclosure schedule 18 Appendix 2 – Summary of gifts and other income recieved by 19 Background 5 each political party Definitions used in this report and essential features 5 Appendix 3 – Gifts $1,800 or greater received by political parties 20 of electoral funding and disclosure Appendix 4 – Other income $1,800 or greater received by 24 Annual Returns 5 political parties Election-related Returns 5 Appendix 5 – Summary of gifts and other income received by each 26 Electoral Funding 6 associated entity Gifts 6 Appendix 6 – Gifts $1,800 or greater received by associated entities 27 Public Agencies 6 Appendix 7 – Summary of gifts received and expenditure incurred 28 Records to kept 6 by each candidate at the 2009 Fremantle by-election Role of the Western Australian Electoral Commissioner 7 Appendix 8 – Summary of expenditure incurred by each party or 29 Access to Returns 7 independent candidate at the 2009 Fremantle by-election Publications 7 Appendix 9 – Electoral funding entitlements received by political 30 2008-2009 Annual returns of political parties and associated entities 8 party agents’ at the 2009 Fremantle by-election Background 8 Appendix 10 – Summary of gifts received and expenditure incurred by 31 Summary of activity 9 each candidate at the 2008 State General Election by Party Result of investigation into annual returns 9 Appendix 11 – Gifts $1,800 or greater received by candidates at the 2008 State General Election by party 36 2008 State General Election and funding claims 10 Appendix 12 – Summary of expenditure incurred by candidates at the 40 Background 10 2008 State General Election by Party Summary of activity 11 Appendix 13 – Gifts received by Legislative Council groups at the 50 Result of investigation into the 2008 State General Election 11 2008 State General Election 2009 Fremantle by-election and funding claims 12 Appendix 14 – Summary of expenditure incurred by Legislative Council 51 Background 12 groups at the 2008 State General Election Summary of activity 13 Appendix 15 – Summary of expenditure incurred by each party at the 55 Results of investigation into the 2009 Fremantle by-election 13 2008 State General Election Appendix 16 – Electoral funding reimbursement received by political 56 Register of agents of political parties 14 party agents or candidate agents at the 2008 State General Election Background 14 Appendix 17 – Summary of expenditure by agencies and statutory 58 Summary of activity 14 authorities required to declare expenditure under 175ZE of the Act WESTERN AUSTRALIAN ELECTORAL COMMISSION 3 Executive Summary The Political Finance Annual Report 2009 is a compliance review of the 2008 State General Election disclosures made under the provisions of Part VI of the Electoral Act • $7,674,270.15 in election spending was declared by political parties 1907 (the Act) in 2008–2009. For 2008–2009, those disclosures include: candidates and Legislative Council groups • Gifts and/or other income from political parties and associated • $444,979.98 in gifts was declared by candidates and Legislative entities for the financial year. Council groups • Electoral expenditure by political parties for the 2008 State General • $3,238,077.64 was paid to 16 independent candidates and political Election and 2009 Fremantle by–election. party agents as reimbursement for their electoral expenditure. • Gifts, other income and expenditure by candidates in the 2009 Fremantle by–election 2008 State General Election and 2009 Fremantle by–election. • $273,076.05 in election spending was declared by political parties • Electoral reimbursement funding for political parties in the and candidates 2008 State General Election and 2009 Fremantle by–election. • $16,600.00 in gifts was declared by candidates • Registration of agents of political parties. • $27,224.77 was paid to 4 candidates and political party agents as • Disclosure by public agencies in relation to certain expenditure. their election funding reimbursements. Overall, disclosures made to the Electoral Commissioner complied with Part VI of the Electoral Act 1907 disclosures the requirements under the Act. Areas of concern relate to timeliness • 5 registered parties updated their party agent details and accuracy of the lodgement of returns, record keeping by some candidates and parties and the interpretation of the ambiguity of section • 222 agencies and statutory authorities disclosed to parliament 175ZE in relation to the disclosure of certain expenditure. expenditure of $87,533,315.81 under section 175ZE of the Act. Summary of disclosures through 2008–2009 In auditing compliance with the Act it was found that generally political parties, associated entities, individual candidates, Legislative Council 2008–2009 Annual Returns by Political Parties and groups and other persons fulfilled their obligations. Improvements can Associated Entities be made in the areas of: • $13,144,831.71 in gifts and other income was declared by • Record management, in particular keeping up to date gift, 19 political parties acknowledgement and expenditure books. • $2,528,904.00 in gifts and other income was declared by • Providing for more efficient means by which parties can collate 4 associated entities. reports in disclosure periods with multiple electoral events. WESTERN AUSTRALIAN ELECTORAL COMMISSION 4 Background This report considers the operation of Part VI of the Electoral Act 1907 Definitions used in this report and essential features (the Act) over the 2008-2009 financial year. Part VI of the Act requires of electoral funding and disclosure all political parties, associated entities, individual candidates, Legislative Council groups and other persons to provide the Electoral Commissioner Annual Returns with details of gifts and/or income received and expenditure incurred for All political parties (whether registered or not) and their associated electoral purposes. Also, those public agencies that have a requirement entities are required to lodge an annual (financial year) return by to lodge an annual report to parliament under Part V of the Financial 30 November, disclosing all gifts and other income received for the Management Act 2006 are required by section 175ZE of the Act to report previous financial year. all expenditure in relation to advertising agencies, market research Election-related Returns organisations, polling organisations, direct mail organisations and media advertising organisations. After an election or by-election, all participating parties, candidates, Legislative Council groups and other persons are required to send an This is the thirteenth annual report to Parliament in accordance with election return to the Electoral Commissioner within 15 weeks after section 175ZG of the Act and details the compliance on: polling day. • annual disclosure returns lodged by political parties and associated Political parties are required to disclose only electoral expenditure entities for this period incurred for an election, as they disclose all gifts and other income in • election returns submitted for the 2008 State General Election and their annual returns. Associated entities are not required to disclose 2009 Fremantle by-election electoral expenditure incurred for an election. • changes in the registration of agents of political parties Candidates are required to disclose all gifts received and electoral expenditure incurred during the disclosure period for the election, which • details on certain expenditure provided by public agencies and ends 30 days after the current election and: statutory authorities in this period. • if the candidate was a candidate in a previous election (in the last The 2008-2009 political finance disclosure schedule, which highlights key five years), it commences 31 days after polling day in the previous disclosure dates during the reporting period, is included as Appendix 1. election in which they were a candidate • for new and other candidates, it commences one year before the day of nomination in the present election. Legislative Council groups must submit a return disclosing all gifts received and expenditure incurred between the hour of nomination and 30 days after the current election. WESTERN AUSTRALIAN ELECTORAL COMMISSION 5 People other than political parties, associated entities, candidates and Eligible electoral expenditure is defined at section 175 of the Act. groups who incur expenditure for political purposes must disclose all Payment is made to the political party for endorsed