Rules shake-up set to limit secret donations

Secret donations to parties will soon be capped at $5000, in a dramatic shake-up of political fundraising rules.

Currently, the identity of those who contribute less than $15,000 to a political party can remain anonymous. But new rules, to be introduced ahead of next year’s general election, will require parties to publicly name supporters who donate more than $5000.

Parties will also have to reveal the number and total value of party donations under $1500, which are not made anonymously. They must disclose gifts which are ‘in-kind’ or non-cash, like artworks, and declare loans to candidates from unregistered lenders and publish annual financial statements.

But the new rules won’t tackle ‘cash for access’ schemes – which allows wealthy citizens to pay for an audience with ministers and political figures.

Earlier this month, Stuff revealed both Labour and National were charging the wealthy for an audience with key political figures, including leaders Jacinda Ardern and Christopher Luxon.

The rules for larger donations are also changing. Presently parties must report all donations from a single donor that exceed $30,000 within 10 working days of receipt. Now the threshold will reduce to $20,000 – but these donations only have to be declared within 10 days during an election year.

Luxon’s National Party strongly objected to many of the proposals, warning of a ‘‘chilling effect’’ on democracy and problems in implementing the changes in an election year.

But Justice Minister Kiritapu Allan said the reform was substantive, but necessary to restore public trust in politics.

‘‘There is a real trust and confi