High Court takes an axe to Victoria’s political donations laws – and it will make federal MPs nervous

Submission statement:

This article is relevant to r/neoliberal as it directly deals with rule of law and the maintenance of fair electoral systems. It shows how a country with strong institutions can withstand illiberal executives through the (functional) separation of powers. A level playing field for all parties and candidates are essential to well-functioning liberal democracy. There should be no barriers for prospective new candidates and parties to obtain the same resources as incumbent major parties. Competition good.

In this case, Victoria (Australian state) legislated a discriminatory political donations scheme in 2018 that entrenches established political parties. The plaintiffs alleged the law unfairly disadvantaged them, and led to their election loss in 2022 (probably would’ve still lost though). The High Court (Australia’s highest court) ruled the entire part of the act pertaining to political donations in Victoria invalid due to the difficulty of stripping out only the discriminatory parts. Unfortunately this means the upcoming 2026 Victorian election faces unrestricted political donations (at this stage). The outcomes of this case has implications for the Australian Government’s federal political donation changes yet to come into effect and whether they are also struck down.