Appendix 1
INTERNATIONAL CASE
STUDIES
Australia
Registered political parties are entitled to
election funding where an endorsed candidate receives at least
4% of the first preference votes.
The amount a party receives is indexed every
six months to increases in line with the Consumer Price Index.
In January 2006, the amount was set at 202.075 cents per eligible
vote.
Canada
Corporations, unions and other organizations
are limited to donating only to candidates they are banned from
donating to the national parties. They can only donate up to $1,000
total to all candidates and funnelling donations through subsidiaries,
executives, employees or anyone else is prohibited.
Individuals can donate up to $5,000 to each
party (including donations to the party's candidates). These donation
limits apply to donations made to parties, candidates for nominations
by riding associations, candidates for election as a Member of
Parliament (MP), and candidates for the leadership of any federal
political party.
Germany
Germany uses a combination of tax relief, matched
funding and money for votes to support political parties.
Membership fees and private donations of up
to €3,300 per person and €6,600 for couples are tax-deductible.
Contributions exceeding €10,000 have to be listed in the
parties' published reports, together with the name and address
of the donors.
Under the Parties Financing Act, which came
into effect on 1 January 1994 and has subsequently been amended,
parties receive from the state €0.70 for each vote cast for
their party list in the respective state in European, Bundestag
and Landtag (state parliament) elections. Derogating from this,
parties receive €0.85 per vote for the first four million
valid ballots cast for their state list.
In addition, for each Euro parties receive in
membership fees or lawful donations of up to €3.300, the
state reimburses them €0.38. State reimbursements for election
expenditures may not exceed the funds raised by the parties themselves
in any given year. The maximum annual amount of public funds for
all parties together may not total more than €133 million
(upper limit). These reimbursements are conditionalon the party
polling at least 5% of the votes cast in European or Bundestag
elections or 1.0% in state elections.
Unites States
Each US taxpayer has the choice of giving three
dollars to the Presidential Campaign Fund from their taxes by
ticking a box on their income tax return form. This money is then
used to fund the following:
— Presidential primary candidates
can receive matched funds for donations from individuals. Individuals
can donate up to $1,000, however, only the first $250 will be
matched by public funds. To qualify for these funds, a candidate
must raise at least $5,000 worth of private contributions from
individuals in twenty different states. They must also accept
a spending limit, which in 1996, was $30.91 million.
— Presidential candidates can
also receive public funds to finance their general election campaigns.
Republican and Democratic candidates who win their party's nomination
for President are eligible to receive these public funds; however,
if they accept these funds, they cannot raise private contributions
to fund their campaign as well. Candidates can also spend up to
$50,000 of their own funds. In 1996, the fund for each candidate
was $61.82 million. Third-party candidates can qualify for public
funds after the general election only if the candidate receives
at least 5% of the popular vote.
— Federal funds can also be granted
to each major party to pay for its National Presidential Nominating
Convention. The base amount for these funds is $4 million, which
is adjusted for inflation each year of a Presidential election.
In 1996, each party was eligible for $12.36 million in public
funds.
The interpretation of the freedom of speech
provision in US Constitution (1st Amendment) has made it difficult
in practice to restrict campaign donations and expenditure and
has created a number of loopholes. In 2002 the Bipartisan Campaign
Reform Act was passed. It is to early to evaluate whether it will
achieve its objective of reducing the influence of money in US
politics.
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