About Donations

General donations to the Institute

Donations made through SBSI’s ordinary donation facilities are solicited for the Institute’s general purposes. They are not solicited on behalf of a political party, candidate or elected member. They are not solicited to fund expenditure whose dominant purpose is to promote or oppose a party or candidate, or to influence how electors vote.

A donor must not use SBSI’s general donation facilities to earmark money for:

• a Commonwealth, state or local government election campaign;
• the promotion or opposition of a political party or candidate;
• how-to-vote material, election advertising or other electoral material;
• a donation to a political party, candidate, elected member or registered electoral participant; or
• the reimbursement of electoral expenditure.

The legal character of a donation depends on its purpose and circumstances, not merely the description placed on it. Any proposed donation carrying an electoral direction or condition must be considered separately and must not be made through the Institute’s general donation facilities.

SBSI’s present electoral status

As at 7 August 2026, SBSI is not registered as a third-party campaigner for any New South Wales election. SBSI is also not registered as a significant third party under Commonwealth electoral law.

There is an important difference in terminology between the two jurisdictions. New South Wales registers third-party campaigners for particular elections. Under Commonwealth law, an ordinary “third party” is not registered. An entity becomes a Commonwealth third party when it incurs electoral expenditure above the disclosure threshold and is not required to register as a significant third party. Ordinary third parties must lodge annual disclosure returns; registration applies to significant third parties.

SBSI conducts public-policy research, education and issue-based advocacy. It may express firm views about legislation, government decisions and public policy. It does not presently conduct or fund activities whose dominant purpose is to influence how electors vote, endorse or oppose candidates, distribute how-to-vote material, or campaign for the election or defeat of a party or candidate.

The word “campaign” may be used by SBSI in its ordinary sense to describe organised advocacy on a public issue. The use of that word does not determine whether activity is regulated electoral campaigning. The content, purpose, audience, timing and surrounding circumstances of the activity must be considered.

New South Wales electoral funding rules

Under the Electoral Funding Act 2018 (NSW), a third-party campaigner is an individual or entity, other than specified political participants, that incurs more than $2,000 in electoral expenditure during the capped expenditure period for a state or local government election. An individual or entity may also register voluntarily. Registration is election-specific, so participation in separate elections requires separate registration where the legal test is met.

For a third-party campaigner, electoral expenditure is expenditure incurred for the dominant purpose of:

• promoting or opposing a political party;
• promoting or opposing the election of a candidate or candidates; or
• influencing voting at an election.

It can include advertising, the production and distribution of electoral material, internet and telecommunications costs, campaign staff, campaign offices, election-related research, travel and fundraising expenditure.

Ordinary policy research or public advocacy does not automatically become electoral expenditure because it deals with a politically contested issue. It can, however, become electoral expenditure where its dominant purpose changes to influencing voting or promoting or opposing a party or candidate. SBSI therefore considers the substance and purpose of proposed activity, particularly during an election’s capped expenditure period.

An entity that will incur more than $2,000 in electoral expenditure during the relevant capped period must register before making payments for that expenditure. A registered third-party campaigner must appoint an official agent and comply with campaign-account, record-keeping and disclosure obligations.

A gift to an entity such as a third-party campaigner can be a NSW political donation where it is intended, wholly or partly, to enable the recipient to make a political donation or incur electoral expenditure, or to reimburse the recipient for doing so. Political donations used by a third-party campaigner to pay electoral expenditure during a capped expenditure period cannot be accepted for that purpose unless the campaigner is registered, has an official agent and receives the donation through that agent. The money must then be deposited into the campaign account before it is used.

Once a contribution is regulated as a NSW political donation for a third-party campaign, further rules apply. These include:

• a separate Australian-dollar campaign account operated by the official agent;
• limits on the amount that may be paid into that account;
• donor identification and eligibility requirements;
• restrictions on anonymous and reportable donations;
• prohibitions affecting property developers, tobacco industry entities, liquor and gambling industry entities, certain registered clubs, industry bodies and their close associates;
• a prohibition on political donations in cash exceeding $100;
• restrictions on indirect campaign contributions;
• disclosure and receipt requirements; and
• a rule preventing a person from making campaign-account donations to more than three third-party campaigners in the same financial year.

These restrictions concern political donations and electoral expenditure. They do not convert every gift to an organisation that discusses public policy into a political donation. SBSI’s general donation facility is not intended to receive funds for NSW electoral expenditure.

Commonwealth electoral funding rules

Under the Commonwealth Electoral Act 1918, electoral expenditure is expenditure incurred for the dominant purpose of creating or communicating electoral matter. Electoral matter is matter communicated, or intended to be communicated, for the dominant purpose of influencing how electors vote in a federal election.

Communications whose dominant purpose is genuine education, raising awareness or encouraging debate about a public-policy issue are not treated by the Australian Electoral Commission as electoral matter. The same subject matter can fall within the electoral regime where the communication’s dominant purpose is to influence voting. The AEC gives examples in which a policy report commissioned for research purposes is outside the definition, while voting guides, candidate recommendations and communications implicitly promoting or opposing parties are more likely to be electoral matter.

A Commonwealth third party is generally an entity that incurs electoral expenditure above the applicable disclosure threshold during a financial year but does not meet the test requiring registration as a significant third party. Ordinary third parties do not register with the AEC. They must lodge an annual return disclosing electoral expenditure and certain donations used to fund that expenditure.

Under the current scheme, registration as a significant third party is required where an entity meets any of the statutory expenditure or fundraising tests. Those tests include:

• electoral expenditure meeting the statutory $250,000 test in the current or any of the previous three financial years;
• electoral expenditure at least equal to the disclosure threshold in the current financial year where the previous year’s electoral expenditure was at least one-third of the entity’s revenue; or
• operating for the dominant purpose of raising at least the disclosure threshold for electoral expenditure, including money to be given to another entity for that purpose.

A significant third party has registration, financial-controller, disclosure, record-keeping and other compliance obligations.

A Commonwealth third party’s annual return must disclose its total electoral expenditure and details of donations above the disclosure threshold that were used wholly or partly to fund that expenditure. Commonwealth law also restricts the receipt and use of foreign donations for electoral expenditure or for creating or communicating electoral matter.

SBSI does not solicit general donations for Commonwealth electoral expenditure. Donors must not earmark donations made through this facility for a federal election, a federal party or candidate, or communications intended to influence voting in a federal election.

If SBSI undertakes regulated electoral activity

If SBSI decides to undertake activity that may constitute regulated electoral campaigning, it will assess the proposed activity before expenditure is incurred or contributions are sought.

Where registration or disclosure is required, the Institute will:

• obtain specific electoral-law advice;
• register or notify the relevant electoral authority as required;
• appoint an official agent, financial controller or other responsible person;
• establish the required campaign or federal account;
• apply the relevant donor-eligibility, donation-cap and foreign-donation rules;
• maintain separate accounting and records;
• comply with expenditure caps, disclosures and electoral-material authorisation requirements; and
• conduct any fundraising appeal through a separate and clearly identified electoral campaign arrangement.

Depending on the legal and operational circumstances, that arrangement may involve a separate legal entity or a separately registered and accounted-for campaign structure.

Any appeal for regulated electoral activity will explain the jurisdiction, election, intended use of the money, applicable donor restrictions, disclosure consequences and tax treatment. It will be separate from SBSI’s general donation facility.

The Commonwealth funding and disclosure scheme is scheduled to change on 1 January 2027. SBSI will review its procedures and this information before those changes commence.

Tax treatment of donations

SBSI is not endorsed or listed as a deductible gift recipient. Its current Australian Business Register entry states that it is not entitled to receive tax-deductible gifts. A general donation to SBSI therefore cannot be claimed as a tax-deductible gift on the basis that it was made to a deductible gift recipient.

The separate income-tax deduction available in limited circumstances for contributions to registered political parties and gifts to independent parliamentary candidates or members does not apply to a general donation to SBSI. SBSI is not a registered political party, an independent candidate or an independent member of Parliament.

Any receipt or acknowledgement issued by SBSI records that a payment was received. It is not a deductible gift recipient receipt and does not state that the payment is tax deductible.

The tax treatment of sponsorships, commercial payments or other transactions involving consideration may differ from the treatment of a genuine donation. Donors should obtain their own taxation advice about their circumstances. SBSI does not make any representation that a payment is deductible under another provision of taxation law.

Donations Policy and general information

The acceptance and administration of donations are governed by SBSI’s Donations Policy. That policy deals with matters including the authority to accept donations, donor information, conditions attached to gifts, record keeping and circumstances in which a donation may be declined or returned.

This page provides general information about SBSI’s current position. It is not a complete statement of electoral or taxation law and does not constitute legal or taxation advice. Electoral thresholds, caps, definitions and regulatory requirements may change.

Information current as at 7 August 2026.

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