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The price of democracy

By Norm Kelly - posted Monday, 3 April 2006


An increase to $1,500 also skews political influence to the wealthier in society, as not only do higher-earning individuals have greater capacity to make donations, they will also receive a proportionally higher (taxpayer-funded) subsidy. As the table shows, (based on current tax scales) it will cost an individual on $20,000 per year $450 more to make a $1,500 donation than for a person on $100,000. So much for equality in the democratic process!

In February, the Democratic Audit of Australia held a workshop on its new report on political finance and government advertising. It is interesting that in this group of about 25 academics, politicians, and parliamentary and electoral officials, only one (a political appointee) was willing to defend the government’s position on this legislation. Despite the name of the government’s Bill - “Electoral Integrity” - Australia is moving in the opposite direction, towards a system where money has an increasing covert influence on political decisions, with dark deeds done in secret.

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If this legislation becomes law, the resultant lack of transparency will result in politicians being tainted with the perception of dirty money, irrespective of whether their actions are honourable or not. Australian voters, and politicians, deserve better.

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About the Author

Norm Kelly teaches politics at the ANU and is a PhD student researching Australian electoral system reforms. He is also a former Member of the Western Australian state Parliament.

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