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How preferential voting works
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There seems to be a lot of cunfusion about how preferential voting works. People can't get their head around whether they are voting 'for' or 'against' a certain candidate. You can really only say you are voting for your first preference and against your last. To try to put all the other candidates into these piles is clearly absurd. You are not voting for or against them, you are ranking them in order of preference. People get upset because they think they are being forced to vote 'for' someone they don't like. This is not true. Your vote only goes to your second preference after your first preference is excluded from the race.
The Americans call our system 'instant runoff' voting, in reference to how it replaces ana dditional runoff election. It helps if you think of the process as many elections, rather than one. Say for the sake of argument there are ten candidates. That means there are effectively nine elections. The first election has ten candidates, the second nine and so on until the last election which has two candidates. At each election you get to vote again for your favourite candidate out of the remaining runners. Viewed this way, you realise that your vote only ever goes to your favourite out of those that are actually running. This can never work against your preferred candidate, as your vote only goes to someone else after they are no longer participating.
More information:
http://www.ozpolitic.com/electoral-reform/electoral-reform.html