In 2012 the NSW parliament passed a new law on political donations that limits donations to individuals that are on the electoral role, capped at 5000$.

This is an excellent step forward.

I find it absolutely amazing that such a thing could be passed, given that politicians are always money-hungry and always very close the their big-business buddies who give the big donations.

So good on Barry O’Farrell for pushing it, and his colleagues for seeing fit to pass it.

This really is a watershed moment in Australian politics. It proves that government can do things which are strongly against the wishes of their all-powerful influences of big business and unions.

I have long called for a ban to all political donations, so that political parties are funded in an entirely neutral manner, rather than one in which big donations can buy big favours and very seriously corrupt democracy.
.

But the unions are now fighting this decision in the High Court.

Well… they would, wouldn’t they! But all of their arguments actually amount to very good reasons for NOT accepting donations from unions!

They are fundamentally concerned about the reduction in their power to influence government decisions, and implicit in this is the notion that by giving donations, they have indeed had significant power over government….. which is precisely what needs to be eliminated!

Premier O’Farrell said;

"We are not only confident that the laws will withstand the challenge but they will clean up the rotten Labor party decisions for donations culture that exists in NSW"

I hope to goodness that this law is not skittled by the High Court, and that other state governments then see fit to follow suit.

http://www.abc.net.au/news/2013-11-05/unions-begin-high-court-challenge-to-nsw-electoral-donation-laws/5070612

Ludwig,
I am not sure If I understand your opening sentence.

"In 2012 the N.S.W. parliament passed a new law on political donations that limits donations to individuals that are on the electoral role, capped at 5000".

Are the donations given by Government "TO" or "FROM" individuals? Who are these individuals receiving the donations? Are these individuals candidates being reimbursed for expenses incurred in their election campaign?

Josephus, we’re talking about donations to the NSW Labor party.

As O’Farrell said; there has been a culture of donations for decisions in the Labor government in NSW.

While it has been a glaring issue in NSW, it is a major corruption of democracy in throughout government in this country, at all levels.

It is just so blatant! I don’t know how the Australian people have allowed it to continue!

Political parties get a large part of their funding from vested interests. Big donors don't give them big money for no reason! They buy favours. Pure and simple!

And those interests all line up on one side of the political philosophy – the continuous-rapid-growth antisustainability side!

Dear Ludwig,

Such legislation has been in place in the US. It is easier for corporations to get around it than it is for unions. In Connecticut where I lived was United Technologies (UT), a corporation which produced the materials of war. Such a corporation is euphemistically called a defense contractor. Management at UT was 'encouraged' to donate to the Republican Party which favoured the military-industrial complex. Eisenhower, a Republican president, had the integrity to warn the country against the complex. The corporate execs were not out of pocket. At the end of the year when corporate execs got their bonuses their bonuses reflected their contributions.

Yntema, a UT executive, blew the whistle on the practice and was rewarded by being sacked.

In practice the law favours corporations along with the Liberal Party and is against unions. It is not neutral.

Oh come on david f, are you trying to tell us many unions don't leak money like a bucket with no bottom. Of course most of that goes to union officials, not government as the union officials are too greedy to give up any they get their hands on.

Just what would you call Obama giving half a billion to companies run by his campaign donors.

The right side of politics are babes in the woods when it comes to payola. Do come of the sanctimonious grass mate.

The donations law was only introduced before the elections to try and cut off the funding to the coalition by limiting private donations where the coalition got most of its funding, but not limiting donations from unions.

What else can you expect from such criminal organisations as the labor party.