Prohibited donors

It is unlawful to make or accept a political donation from a prohibited donor.

A political donation is a gift or loan made to:

a councillor or mayor
a candidate or group of candidates in a local government election
a political party (unless it is accompanied by a restricted donation statement)
another entity to make or reimburse a gift to any of the above, or to incur electoral expenditure for a local government election.

A prohibited donor includes:

a property developer
a close associate of a property developer
an industry representative organisation with property developers as the majority of its members.

If in doubt, a person may apply to the ECQ for a determination that they (or another individual or entity) are not a prohibited donor. Individuals may also use the ECQ’s self-assessment tool for guidance.

A restricted donation statement is a written statement made by the donor of a gift or loan that:

states the relevant particulars of the donor
states that the gift or loan is made with the intention that it is not used for a local government electoral purpose
is given to the recipient when the gift or loan is made.

Gifts or loans accompanied by a restricted donation statement are called restricted donations. Prohibited donors may lawfully make restricted donations to political parties as long as they are not used for a local government election.

There are significant penalties for failure to comply with the prohibited donor laws. Penalties can include prosecution, imprisonment and/or the recovery of those amounts as a debt to the State.

Links to further information:

Forms