South Australia has a history of bold democratic reform. Its political donation ban might just be its most daring move yet. Here’s why.
South Australia has catapulted itself into the global spotlight with a ground-breaking new law to get money out of politics. This isn’t a small tweak – it’s a seismic shift that bans political donations entirely.
While other democracies have introduced caps and transparency rules, South Australia has gone further, eliminating the financial ties between donors and politicians altogether.
A world-first reform
By removing money from the equation, our state is paving the way for fairer, more transparent elections. It’s a bold experiment that could redefine democratic norms – not just here but across the globe.
Let’s break down why it matters for you.

What was the problem?
For years, political donations have been a source of controversy. Critics argue they create a “pay-to-play” culture where wealthy donors hold disproportionate influence.
The old system allowed significant donations to political parties and candidates from corporations, unions, and individuals, raising concerns about conflicts of interest and public distrust of democracy. High-profile corruption scandals have only deepened scepticism.
In Australian politics, you might remember high-profile donations from mining magnates and the gambling industry leading to questions about whether government decision-making on issues like climate change and mental health prioritised public interest or donor agendas.
Such practices led many to question whether ordinary voters’ interests were being sidelined, eroding public confidence in democracy.
The South Australian government decided it was time for a clean break. By banning donations outright and introducing public funding, it aims to restore trust and ensure elections are won by ideas, not bank balances.
How is this law “world-leading”?
Unlike other systems that impose limits or require disclosure, South Australia’s reform is comprehensive.
The Electoral (Accountability and Integrity) Amendment Bill 2024 prohibits almost all donations, introduces strict spending caps, and significantly expands public funding for elections.
No other jurisdiction has implemented such sweeping measures. It’s bold, ambitious, and designed to serve as a model for democratic reform worldwide.

The nuts and bolts: How it works
Here’s a detailed look at the law’s key features:
- Donation ban: All donations to political parties, MPs, and candidates are banned. Exceptions exist only for newly registered parties and independents, who can accept up to $5,000 in donations.
- Public funding: Instead, campaigns and party operations will be funded through public money, distributed based on election performance. Parties and candidates can also access advance payments to cover upfront costs.
- Spending caps: Strict limits on campaign spending ensure no candidate or party can dominate elections through excessive spending. These caps apply to advertising, staffing, and event expenses.
- Penalties: Severe consequences await those who try to bypass the law, including fines up to $50,000 and prison sentences of up to 10 years.
- Transparency for third parties: Lobby groups and unions must disclose funding and use separate accounts for political activities, ensuring transparency across the board.
Why the world is watching
This reform has captured international attention because it tackles a universal problem: The outsized influence of money in politics.
While many democracies grapple with gradual reforms, South Australia’s bold approach sets a new standard, offering a model for other regions to reconsider their campaign finance systems and restore public trust in the democratic process.
Tackling criticisms head-on
Like any major reform, this change has faced its share of opposition. Critics have raised concerns, but their arguments fall flat under scrutiny:
“Won’t this favour the major parties?”
Critics claim that public funding advantages established parties with more MPs and voter support.
The reality: The law includes safeguards for smaller players: First-time candidates can receive up to $5,000 in donations plus an advance $2,500 payment for campaign costs. Combined with spending caps on major parties, this ensures fair competition and aligns public funding with voter support, reinforcing democratic principles.
“What about third-party influence?”
Some argue that money will shift to lobby groups or unions, bypassing the rules.
The reality: New transparency requirements for third parties mandate disclosures and separate accounts, plus enforcing a new cap on the cost of their own campaigns. These measures ensure accountability and prevent shadow financing.
“Doesn’t this limit free speech?”
Opponents suggest the donation ban restricts individuals from supporting causes they believe in.
The reality: Public funding amplifies fairness, ensuring every voice is heard without wealthy donors drowning out others. This reform doesn’t silence anyone; it levels the playing field.

Overcoming the challenges
Every bold reform comes with hurdles, but South Australia is well-prepared to address them:
- Legal challenges: While the law aligns with constitutional principles, it may still face a High Court challenge. However, its architects are confident that it is built to withstand such scrutiny.
- Implementation: While rolling out the new system requires oversight, existing campaign finance frameworks provide a strong foundation.
- Evolving needs: Continuous monitoring will address unforeseen issues, ensuring the law remains effective and adaptable.
What’s next?
The new law will take effect on 1 July 2025, so it will apply in the lead-up to the March 2026 South Australian general election.
A statutory review of the bill’s operation will be completed within 18 months of the poll, ensuring the law remains up-to-date and relevant.
More good news
State parliament has passed additional electoral reforms to ban unsolicited robocalls and regulate the use of artificially generated electoral content, or deepfakes.
Further amendments include allowing pre-poll votes to be counted on polling day, and providing telephone-assisted voting for sight and motor-impaired South Australians.
Also: Say goodbye to election clutter! Federal and state corflutes are now banned, which means no more visual pollution from campaign posters plastered on trees or Stobie poles along every main road.
Read more about the Electoral (Accountability and Integrity) Amendment Bill 2024 here.