In its submission to the NSW Legislative Council Select Committee Inquiry into Electoral and Political Party Funding, For The Sake of Democracy, PIAC argued that the principles of equal representation and equal opportunity for citizens and parties to participate in political life must be central to any consideration of political financing, as must the principle of ensuring that elected members are free to work in the public interest, unencumbered by undue influence, conflict of interest or corrupt practice.

PIAC recommended that:

• only individuals be able to make political donations, and these should be capped.
• capping of election spending of political parties and candidates.
• citizens should have a right to full information regarding the financial activities of governments, political parties, candidates and any other entities that have significant political influence.

The Committee has adopted many of PIAC’s recommendations, including an absolute ban on political donations from corporations and other organisations, the capping of election spending, improvements to reporting of donations and spending and improved policing of the electoral funding scheme.

PIAC welcomed the commitments made by the then NSW Premier, Morris Iemma, to clean up and strengthen the regulation, reporting and transparency of political donations.