Donations to political parties, candidates and listed third parties are all regulated.  There are limits on the size of foreign donations, the size of anonymous donations, and rules relating to the public disclosure of donations. This page relates to the disclosure by political parties of donations received.  Other aspects of the donations regime are dealt with elsewhere.

The financial agent of each registered political party must follow legal requirements for the completion, audit, and submission to the Electoral Commission of an annual return of party donations received worth more than $10,000. Returns covering each calendar year are due no later than 30 April of following year.  Parties are also required to make immediate disclosure where a donor gives more than $20,000 to it in a 12 month period.  Parties must have systems in place to track aggregated totals by donor for the purposes of the annual donations return, as well as immediate returns of donations exceeding $20,000.  The Electoral Commission is required to set the forms of return, supervise parties' compliance, and make accepted returns available for public inspection.

What is an annual return of party donations?

A report that must be filed with the Electoral Commission by the financial agent of each registered political party by 30 April each year, giving details of every donation greater than $10,000 and the name and address of donors. Handling of donations that could not be accepted under the law is also recorded.  The Electoral Commission supplies the form to be used.  An auditor's report must accompany the return.

Which donations must be disclosed in an annual return?

Gifts to a registered political party in the forms of:

• money, or
• goods or services paid for by others (but not a donor's own labour), or
• a discount given on goods or services provided to the party at less than their reasonable market value (where the reasonable market value is greater than $1000), or
• the amount of any payment in excess of reasonable market value for goods or services provided by the party, or
• credit offered at terms more favourable than the commercial terms and conditions prevailing at the time.

Donations must be disclosed where the total value from an individual donor within the calendar year is more than $10,000 (including GST) and regardless of whether given as a single donation, two or more smaller donations, in a mix of forms, or through different party officials or sub-groups.  Donations to an electorate candidate disclosed in the candidate's post-election return are not included.

What else must be disclosed in an annual return?

In relation to each donor who has donated more than $10,000 (including GST), the return must include the name of the donor, their address, and the amount and date of each donation.

Details of any contributors of more than $10,000 to donations must also be included, as well as details relating to anonymous donations and overseas donations that exceeded $1,000.

What if I have no donations large enough to be disclosed in a return?

You must still file a return. You will still have to obtain an auditor’s report.

When must an immediate return of a donation exceeding $20,000 be made?

Whenever a party receives a donation that:

• Exceeds $20,000; or
• That, when added to all the donation received from the same source in the preceding 12 months exceeds $20,000 a return of party donation exceeding $20,000 must be filed within 10 working days.

Can annual donation returns and auditors' reports be inspected?

Donation returns, auditors' reports, and summary statistics are provided for inspection, or may be viewed at the Electoral Commission’s offices.  The commission must put returns on public display within three days of acceptance, and online versions will be available within a short time of this.

Who may make a party donation?

Any person or organisation of any form.  Donations from overseas persons (including overseas organisations or companies) are limited to $1000.

What is an anonymous donation?

Any donation that is made in such a way that the financial agent does not know the identity of the donor, and could not, in the circumstances, reasonably be expected to know it.  An anonymous donation is limited to $1000.

Donations made in the following ways are not considered to be anonymous:

• made by personal cheque, as the donor's name is set out on the cheque and this is an acknowledgement that the money comes from that source
• made by a person who identifies himself or herself to the party, or who is known to the person who receives the donation on behalf of the party
• where a known or identifiable donor asks that the donation be treated as anonymous
• a donation by way of a solicitor's trust account cheque that is not a donation from that law firm.

The following are considered to be anonymous donations:

• a bank cheque supplied without any advice or incidental information as to the identity of the person supplying the funds for the cheque
• cash received with no way of tracing the donor

Concealing the identity of a donor when the donor is not anonymous is an offence.

Do donations to an electorate candidate's election campaign count as party donations?

No, but these must be included in the candidate's return of election expenses.

When people pay to attend a fundraising event is that a donation?

It may be; if the reasonable market value of the event is less than the price charged, then the difference is a donation. For instance, in the case of a fundraising dinner the donation value will be the difference between a comparable restaurant meal and the ticket price. In the case of a garment sale, the donation value will be the difference between a comparable shop-bought garment and the sale price (ie, the donation is not the profit from sale)..

Does a donation of labour count?

No, as long as the person is donating their own labour free of charge.  Donation of someone else’s time (for example, by a business of its employees’ time) may constitute a donation.  A discount offered on the price of someone’s own labour may count as a donation.

Must the GST component of a donation be counted in the value listed on the return?

Yes, where the nature of the donation attracts GST.  Parties are advised to consult Inland Revenue or seek independent professional taxation advice.

How is the donation value of discounted goods and services determined?

If goods or services are provided at less than reasonable market value, the difference between the contract price of the goods or services and their reasonable market value is a donation (if the reasonable market value of the goods exceeds $1000) from the person who provided the goods or services and included in the return if more than $10,000 in value, including GST.