The Victorian government is proposing to double the cap on political donations to $10,000 in its race to re-establish the state’s campaign finance laws before the November election, multiple sources have confirmed.
The Allan government was on Friday negotiating with crossbench MPs after the Coalition indicated it would not support the proposed new donation rules, which Labor hopes to introduce to parliament when it returns next week.
There have been no limits on political donations or any disclosure requirements since the high court struck down the state’s donation laws in April, removing the previous cap of $4,970 over a four-year term.
After the judgment, the premier, Jacinta Allan, promised to “immediately move to restore Victoria’s electoral integrity regime” with fast-tracked legislation. But the government had been struggling to reach an agreement with either the opposition or the Greens and other crossbenchers for weeks.
However, on Friday, crossbench MPs confirmed to Guardian Australia they were briefed by the government on a proposed bill, with one saying they expected the draft legislation would be released on Monday night.
The proposed laws would create a $10,000 donation cap per candidate from the next term of parliament, multiple sources said.
A $5,030 cap would be introduced to last for the remainder of the year, which would be backdated to 15 April, the date of the high court judgment. The previous $4,970 cap would apply up to 15 April, meaning the cap for the term would also be $10,000.
The government – which must rely on either the cross-bench or the Coalition to pass legislation – conceded it would have to do away with so-called “nominated entities”, which effectively allowed the major parties access to legacy funds.
The nominated entity clause prompted the high court challenge by two independent candidates, who argued it unfairly benefited the legacy parties.
While the high court challenge centred on that exemption, it ultimately found the entire section of the Electoral Act governing political donations was unconstitutional.
A crossbench MP, who asked not to be named in order to discuss the negotiations freely, said the government was rushing to get a system in place that would get the state through to election day.
“They’re clearly burning the midnight oil trying to get it into parliament next week – they want to have a fallback week before the winter recess,” they said.
“Their clear focus is on something that is minimalist that won’t go back to the high court.
“This is an interim measure, this is not a reform. And there needs to be reform.”
The Victorian Greens leader, Ellen Sandell, said Labor should urgently bring forward the legislation if it wanted their support.
Under the proposal put forward to the crossbench, the government would also increase the administrative funding that political parties would receive for every member of parliament elected.
This would involve a party receiving $300,000 for their first MP elected to parliament, $100,000 for the second, and then $55,000 for every MP until the 45th. Independents would each receive $300,000.
The Liberals and Nationals would continue to each receive separate administrative funding.
The Liberal MP James Newbury on Friday said the government had not taken into account any of the Coalition’s earlier “good faith” propositions.
“I am concerned about a proposed set of laws which don’t change anything except what Labor puts in their pocket,” he told reporters.
A Victorian government spokesperson said public funding was “core to free and fair elections” and accused the Liberals of wanting “billionaires to decide” the election.
Transparency International Australia’s chief executive officer, Clancy Moore, said both the government and the opposition would benefit from any increase in public funding, so the calls opposing changes were “probably politically motivated.”
Moore said public funding was good for democracy but must be designed so as to not “entrench” the major parties and incumbents.
