ACT Labor's biggest single donor has been required to resubmit a report to the electoral commission after an investigation into a $2.5 million donation to the party.
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The Canberra Labor Club made the $2.5 million donation to the Labor Party's investment vehicle, the 1973 Foundation, which was listed as a capital deposit in its official report for the 2013-14 financial year but ACT Electoral Commissioner Phillip Green investigated whether the amount should also have been disclosed as a receipt.
Political parties are required to disclose all receipts for amounts above $1000. The only receipt declared by the 1973 Foundation was $456,000 from real-estate firm CB Richard Ellis.
In a report released this week, Mr Green found the foundation had incorrectly reported the receipt of the $2.5 million donation from the club group in its 2013/2014 annual return.
"This substantial amount was included in the list of 'organisations who deposited capital' section of the return," the Elections ACT decision said.
"However, the amount was not included in the total receipts or the listing of receipts in excess of $1000 sections of the return. The associated entity has since provided an amended return for this omission."
Mr Green said no formal warning letter was issued over the finding.
The donation caused the Canberra Labor Club group to record a $770,000 loss in the last financial year, compared with a $2.95 million profit the year before.
The club group was established to support ACT Labor and its articles of association require any profits to be paid to the branch. The foundation was set up to put distance between the party and the club group and to make property investments as a source of income for Labor.
Mr Green also investigated whether the Canberra Liberals received discounted rent for its tenancy at 221 London Circuit, Canberra and if the rent could be considered a gift-in-kind.
Any gift would have been required to be disclosed in gift returns to the commission. Allegations of discounted rent have been circulated to local media in recent months, including from people claiming to be party members.
The commission's report said the possibility of discounted rent for the
he party provided sufficient evidence of commercial lease negotiations.
Given the outcome of the investigation, no formal warning letter was required to be issued to the Canberra Liberals.
