The ACT Assembly looks set to lift a ban on unions or businesses donating to parties contesting territory elections, but is expected to reject a call to lower the cap on how much people can donate.
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Since 2012, the ACT has had a ban on donations from anyone other than individuals on the electoral roll, which effectively bans unions and businesses from donating to ACT election campaigns.
But a similar rule in NSW was struck down last year by the High Court, which found that while it was legitimate to restrict donations to avoid corruption or hidden influence on government, the rules did not achieve that purpose.
The High Court ruling signals the likelihood that the ACT's donation rules would also be overturned if they were challenged in the High Court, so an Assembly committee has recommended that the ban on union and business donations be removed.
It has stopped short, though, of agreeing to a lower cap on donations.
The limit is now $10,000 a year from any one group, and constitutional lawyer George Williams urged the committee to look at a lower cap for people not on the electoral roll. He suggested $1000 or lower, which would ensure that union or corporate interests could not exercise undue influence through a large donation.
But the committee, chaired by Mick Gentleman (Labor) with Alistair Coe (Liberal) as deputy chairman, rejected the idea, saying: ''It would be difficult to demonstrate that $5000 from an individual would be more or less likely to unduly influence an election or a political party than $5000 from a corporation or other body.''
The third committee member, Shane Rattenbury, called for the cap to be reduced.
''A donation of $10,000 can carry significant influence,'' he said. ''There is no doubt that $10,000 is a significant amount of money and, while it is difficult to determine an amount that 'buys influence', a lower limit on donations is recommended.''
This was especially important given the removal of the ban on donations from corporations and individuals outside the ACT, he said.
The issue is yet to be considered by the Assembly.