An independent MP has had a fiery public clash with a minister over controversial electoral reforms that cap election spending and political donations.
Labor and the coalition struck a deal on capping campaign expenditure to $800,000 per electorate but registered political parties can access a $90 million war chest for general advertising, which independents say stacks the field.
"This election 2025, is ultimately going to be probably, if we can't repeal this legislation, the last competitive election where there will be a capacity for independents to come and challenge incumbents in seats," independent MP Zali Steggall told reporters in Canberra on Thursday.
"If this legislation is not amended, it will become incredibly difficult."
Special Minister of State Don Farrell, who spearheaded the legislation and negotiations with the coalition, disagreed it stacked the playing field towards major parties when confronted by Ms Steggall in Parliament House.
"There are no secret loopholes in this legislation," he said.
"The whole process pushes downward pressure on the cost of elections so ordinary Australians have a chance to be elected, not those candidates that are supported by the billionaires and the millionaires."
The amount an individual can donate to a political campaign is $50,000 to a party's branch in each calendar year, meaning this increases to $450,000 if a person donates to a branch in each state and territory plus the national arm.
Donors hedging their bets and giving cash to multiple parties will be capped at $1.6 million nationwide, although this is limited to $250,000 in any state or territory.
Aggregated donations over $5000 will have to be disclosed - down from the 2023/24 threshold of $16,900 - and disclosures will need to happen within weeks compared to the current annual returns.
This will ramp up during election campaigns and shorten to within days.
The amount candidates can spend will be capped at $800,000 per electorate and $200,000 per electorate in a given state and territory for senators.
This limits campaign spending to $600,000 for the ACT and $9.2 million for NSW.
Political parties can access a separate $90 million limit for broad advertising without a candidate's name that can be used nationwide.
Independents are up in arms about major political parties having access to a larger war chest from which they can allocate funds away from safe seats and pump negative or broad party ads into tight contests.
They've branded the reforms "a major party stitch-up" after debate was limited to 2.5 hours and a vote forced in the Senate on Wednesday after Labor and the coalition sealed a deal on the legislation.
Independent senator David Pocock accused the major parties of putting their self-interests first and locking out competition, adding that provisions that increase public funding for votes disproportionately benefit major parties.
"So it could be $800,000 backing the Liberal, Labor candidate by name and then it's $2 million backing Liberals or Labor - just don't mention their name," he said during the Senate debate.
"That's not a level playing field."
Crossbenchers including Katy Chaney, Helen Haines and Ms Steggall have flagged fairer reforms being part of any minority government negotiations if there's a hung parliament after the next federal election.
The bill is set to pass the lower house on Thursday, although the major changes won't come into effect until July 1, 2026.
