Before ParliamentDemocracy & Government Introduced in the Senate, 04 Feb 2026 by HODGINS-MAY, Sen Steph

Donations from miners, banks and gambling could be banned

A private Senate bill, one that does not come from the government, would stop some industries giving any money to politicians. It would also cut how much anyone else can give.

Official name: Commonwealth Electoral Amendment (Banning Dirty Donations) Bill 2026

The short version

Who it affects

Big donors may buy favours

Political parties and candidates rely on donations to pay for campaigns. Some people worry that big donors get special access or favours in return.

A group of senators looked at this. It was called the Select Committee into the Political Influence of Donations. It found some industries give money in patterns that suggest they want to sway decisions that affect them. It said donations from those industries should be banned.

Senator Steph Hodgins-May, of the Greens party, brought this bill to carry out that advice. It is a private bill, which means it did not come from the government. She says it would help the public trust that politicians act for the public and not for donors.

Which industries are banned

The bill would ban political donations from property developers. It would ban them from the tobacco and vaping industry. Banks and other money businesses would be banned too.

So would alcohol and gambling businesses and drug companies. So would mining companies and fossil fuel companies, which deal in coal, oil and gas, and defence companies.

The ban would also cover people close to these businesses. That includes directors, managers and big shareholders. It includes their husbands or wives, and linked companies.

Industry groups would be banned if most of their members are banned donors. This stops money being passed through a group that speaks for the industry.

What counts as a donation

A political donation would mean a gift to a party or a party branch. It would also mean a gift to an MP, a candidate or a group linked to a party. Gifts to big campaign groups for election spending also count.

Loans would count if they work like a gift. Personal gifts, such as a birthday present, would not count unless used for campaigning.

It would be against the law for a banned donor to give. It would also be against the law for anyone to take their donation. A banned donor also could not ask someone else to give for them.

Say a mining company director tries to give $20,000 to a candidate through a friend. The director could be charged. So could anyone who knowingly takes the money.

Penalties

Making a banned donation could bring up to 2 years in jail. Or it could bring a fine of up to 400 penalty units, or both. A penalty unit is a set dollar amount used to work out fines.

Knowingly taking a banned donation is also a crime. People who give or take one could also face a fine set by a court. That fine is 200 penalty units or three times the donation, whichever is higher.

The government could also get back the amount of a banned donation from whoever got it, as a debt.

Some people might set up tricks to get around the ban. One example is moving money through other people. That would also be against the law.

Lower caps for everyone else

The bill would also cut how much any person or business can give. The summary of the bill says the limit would be $3,000 from any one giver per election term.

The notes on each part of the bill describe the limits a little differently. They say the yearly limit would drop to $1,000. They say the limits for by-elections and Senate-only elections would be $3,000. A by-election fills one empty seat between general elections.

Gifts to state branches and linked groups would be added together. They would count as gifts to the party. This stops donors splitting a big gift into small pieces.

Membership and affiliation fees

Right now, some fees paid to parties do not count as gifts. This bill calls that a loophole, a gap in the rules.

Under the bill, regular fees would count as gifts unless they are for membership and under $1,000. Fees a group like a union pays to join a party would count too.

Fees paid into a federal campaign account would also count. A special higher limit for industry groups would be removed.

Checking if you are banned

Some businesses may not be sure if they fall into a banned group. They could ask the Australian Electoral Commission for a written ruling. That is the agency that runs federal elections.

A ruling would last 12 months. The commission would put a list of rulings on its website. A ruling could be challenged if it was based on false facts or the business has changed.

Waiting in the Senate

Senator Hodgins-May brought the bill to the Senate on 4 February 2026. The Senate debated it on 14 May 2026.

It is still before the Senate. To become law it would need to pass the Senate and the House of Representatives, Parliament's main house. Then the Governor-General, who stands in for the King, would sign it.

It would start on 1 July 2026 or the day after it is signed, whichever is later.

Its journey through Parliament

04 Feb 2026Senate: Introduced and read a first time
04 Feb 2026Senate: Second reading moved
14 May 2026Senate: Second reading debate

Official sources

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