Annual returns factsheet for nominated entities of registered political parties

What is a nominated entity?

A registered political party (RPP) may appoint an organisation as its nominated entity. A RPP cannot have more than one nominated entity.

Gifts between a nominated entity and its RPP are not considered political donations.

To be a nominated entity, an organisation must be:

  • an incorporated body that operates for the benefit of a party, but does not have voting rights in it
  • appointed by an RPP via submitting the completed Nominated Entity form to the VEC.

What is an annual return?

An annual return for a nominated entity summarises the amounts received and expenditure and debts incurred by a nominated entity during a financial year. We use annual returns to check that entities are complying with funding and disclosure laws including the disclosure of political donations.

Division 3C of Part 12 of the Electoral Act 2002 (external link) outlines the annual return requirements.

Do nominated entities need to submit an annual return?

Yes. The Registered Officer of the nominated entity’s RPP must submit an annual return for the nominated entity regardless of whether the nominated entity received any political donations or incurred any political expenditure.

However, only information in relation to the State campaign account(s) is required, so the Registered Officer may submit a nil return for the nominated entity. More information about State campaign accounts.

An annual return is required for the whole financial year or the relevant part of the financial year during which the nominated entity met the definition of a nominated entity under the Electoral Act 2002.

When are annual returns due?

Annual returns are due 16 weeks after the end of the financial year, which is 20 October each year.

The RPP’s Registered Officer can submit an annual return at any time from 1 July.

How are annual returns submitted?

The RPP’s Registered Officer must submit the annual return using the VEC online disclosure system, VEC Disclosures.

A user guide for submitting annual returns through VEC Disclosures is available here:

What information is required?

The following information is required in relation to the nominated entity’s State campaign account(s) for the financial year (including GST):

  • total income
  • total disclosed political donations
  • total undisclosed political donations (under the disclosure threshold)
  • the number of undisclosed political donors for the total undisclosed political donations
  • total non-political donations
  • total expenditure
  • outstanding debts

The annual return must be audited and include a certificate of audit from an independent auditor.

The Registered Officer of the RPP must also submit the following with, or as soon as possible after, the return:

  • a loan, grant or donation statement under section 237 of the Fair Work (Registered Organisations) Act 2009 (Cth) (Fair Work (RO) Act)
  • a general-purpose financial statement under section 253 of the Fair Work (RO) Act
  • financial statements under section 102 of the Associations Incorporation Reform Act 2012 (Vic)
  • a financial report under section 319 or 320 of the Corporations Act 2001 (Cth) (Corporations Act).

Explanation of requirements

  • Nominated entities of registered political parties
    Term Details

    Financial year

    The reporting range for the annual return is 1 July to 30 June (inclusive).

    Total income

     

    This amount is the total overall amount received by, or on behalf of, the nominated entity and includes the amounts disclosed in 'Total disclosed political donation', 'Total undisclosed political donations' and 'Total non-political donations'

    Total disclosed political donations

     

    The total amount of disclosed political donations that appear on VEC Disclosures. These disclosed political donation amounts must also be included in the 'Total income' field.

    When completing the annual return in VEC Disclosures this field is automatically populated and cannot be edited.

    Total undisclosed political donations

     

    The total amount of political donations received, that have not been disclosed via the VEC Disclosures, including small contributions and funds raised under the disclosable threshold. These undisclosed political donation amounts must also be included in the 'Total income' field.

    If the sum of all political donations received from a person or entity during a financial year is equal to or above the disclosure threshold, the annual return must include the following details:

    • the full name of the person or entity from whom the amount was received
    • the address of the person or entity from whom the amount was received (unless the individual is a silent elector, in which case the address must not be recorded)
    • the sum of the amount received.

    Number of donors for undisclosed political donations

    The number of individual donors that made a political donation under the disclosable threshold for the financial year.

    Total non-political donations

     

    Total non-political donations are all amounts received by, or on behalf of, the nominated entity that do not require disclosure. For example, dividends on shares, income of real estate holdings, deposits made to the recipient through a deceased estate or funding.

    These examples are acceptable monetary transactions that are not political donations.

    If the sum of all non-political donations received from a person or entity during a financial year is equal to or above the disclosure threshold, the annual return must include the following details:

    • the full name of the person or entity from whom the amount was received
    • the address of the person or entity from whom the amount was received (unless the individual is a silent elector, in which case the address must not be recorded)
    • the sum of the amount received.

    Total expenditure

     

    Total expenditure is the total amount of expenses incurred by, or on behalf of, the nominated entity.

    Total outstanding debts

     

    Total outstanding debts incurred by, or on behalf of, the nominated entity.

    If the sum of all outstanding debts to a person or entity during a financial year is equal to or above the disclosure threshold, the annual return must include the following details:

    • the full name and address of the person or entity to whom the amount of the debt is owed (unless the individual is a silent elector, in which case the address must not be recorded)
    • the sum of the amount that is owed
    • whether the amount of the debt is to a financial institution or non-financial institution.

    What about…

    Funding amounts

     

    Funding amounts must be reported on the annual return. These amounts are required in the 'Total income' field, as well as the 'Total non-political donations' field.

    Fundraising amounts

     

    Amounts received as profit through fundraising must be included in the Total income field. It must also be included in the 'Total disclosed political donations' field or the 'Total undisclosed political donations' field depending on whether the profit amount received from each person was under or over the disclosure threshold.

    Goods and Services Tax (GST)

    Where a sum includes GST, the reported amount must include the GST.

    Small contributions

    Small contributions must be included in the 'Total income' as well as the 'Total undisclosed political donations' fields.

Do annual returns need to be audited?

Yes. The annual return must be audited and include a certificate of audit from an independent auditor, advising that the statement has been audited in accordance with Australian Accounting Standards as specified in s. 334(1) of the Corporations Act.

The audit certificate must state that the auditor:

  1. was given full and free access at all reasonable times to all accounts, records, documents and papers relating directly or indirectly to any matter required to be specified in the statement; and
  2. examined the material referred to in paragraph (a) for the purpose of giving the certificate; and
  3. received all information and explanations that the auditor requested in respect of any matter required to be specified in the statement; and
  4. has no reason to believe that any matter stated in the statement is not correct.

You can use this audit certificate template (PDF).

Can the public see annual returns?

Yes. We are required to publish an annual return summary on VEC Disclosures on or before 31 December each year.

We do not publish donor addresses as they are confidential under the Electoral Act 2002.

What happens if I don’t submit an annual return?

If a RPP does not submit an annual return for its nominated entity, the Registered Officer may be fined.

The fine for this offence is 200 penalty units (external link).

Can I get help to complete my annual return?

Yes. Follow this checklist (Word).

If you have any questions, contact the Funding and Disclosure Unit by email to disclosures@vec.vic.gov.au or call 131 832.