(1)    Schedule 1, page 13 (after line 28), after item 43, insert:

43A After Part 2M.3, Division 8

Insert:

                  The object of this Division is to authorise gifts and other political donations as defined in the Commonwealth Electoral Act 1918 and in this Division, made by companies to political organisations.

         (1)    It is unlawful for a gift or other political donation as defined in this section to be made by a company to a political organisation or a candidate except as authorised by this Division.

         (2)    In this Division:

candidate means a candidate for election to the Commonwealth Parliament, a State Parliament or for a position in a registered organisation as defined in the Workplace Relations Act 1996.

political donation means:

              (a)    a gift as defined by the Commonwealth Electoral Act 1918; or

              (b)    a disposition of property as defined by the Commonwealth Electoral Act 1918.

political organisation means a registered political party or an associated entity as defined by the Commonwealth Electoral Act 1918.

relevant time, in relation to any political donation made by a company, means:

              (a)    the time when the donation is made; or

              (b)    the time, if earlier, when any contract or undertaking is entered into by a company in pursuance of which the political donation is made.

         (1)    It is unlawful for a company or an officer of a company to make any political donation to a political organisation or candidate unless:

              (a)    the political donation is authorised by a resolution passed at a general meeting by a majority of shareholders of the company before the relevant time; or

              (b)    the political donation is made on the authority of the company, board or management body in accordance with a donation policy which has been approved by a general meeting of the company before the relevant time.

                   (a)    in the case of an individual—by a fine not exceeding 2000 penalty units; or

                   (b)    in the case of a body corporate—by a fine not exceeding 10,000 penalty units.

         (2)    For the purposes of this section, an approval resolution is a qualifying resolution which specifically authorises the company to make donations to nominated political organisations not exceeding in total a sum specified in the resolution, during the requisite period beginning with the date of the resolution and concluding at the expiration of 3 years after the date of the resolution, after which a further resolution is required in accordance with paragraph (1)(a).

         (3)    In this section:

qualifying resolution means an ordinary resolution or, if the directors so determine or the articles so require:

                   (a)    a special resolution; or

                   (b)    a resolution passed by any percentage of the members greater than that required for an ordinary resolution.

requisite period means three years or such shorter period as the directors may determine or the articles may require.

         (4)    The directors may make a determination in relation to a qualifying resolution or the requisite period unless any provision of the articles of the company operates to prevent them from doing so.

         (5)    An approval resolution must be expressed in specific terms which conform with subsection (2).

         (6)    If a company or an officer of a company makes any donation in contravention of subsection (1), no ratification or other approval made or given by the company or its members after the relevant time is capable of operating to nullify that contravention.

         (7)    For the purposes of this section, company includes a subsidiary of a company.