Recent amendments to political donation laws pose a significant challenge to the business model of Climate 200, a key player in financing independent candidates focused on climate action and political reform. While these reforms aim to curb the influence of wealthy donors, their impact on the rise of independent candidates, such as those backed by Climate 200, remains uncertain.
Simon Holmes à Court, founder of Climate 200, rejected accusations that he controls independent MPs supported by his group. Holmes à Court’s journey into the political spotlight began in 2019 after a public falling out with Liberal Treasurer Josh Frydenberg. Following his outspoken support for closing the Liddell Power Station, Holmes à Court was ousted from the Kooyong 200 fundraising vehicle, prompting him to launch Climate 200 as a response.
Since its inception, Climate 200 has become a formidable force, raising millions in support of independent candidates. The group raised $13 million for the 2022 federal election, helping to unseat prominent Liberal MPs, including Frydenberg and Tim Wilson, and replacing them with independent women, such as Allegra Spender and Monique Ryan. This success has contributed to the diminishing dominance of the major parties and could potentially affect the upcoming election.
In a retaliatory move, both the Coalition and Labor passed sweeping reforms to political donations laws on February 12, 2025. Under the new legislation, candidates will be capped at receiving no more than $50,000 from a single donor, a measure that directly targets organizations like Climate 200, GetUp!, and Advance, as well as individuals and unions. The reforms also impose stricter limits on political spending, reducing the amount Climate 200 can contribute to individual candidates in future elections.
These new rules also introduce a cap on spending in individual seats, limiting expenditures to $800,000—far below the $2.1 million that candidates like Spender and Ryan spent to secure Liberal-held seats in 2022. Labor argues the changes will prevent the rise of American-style politics, where billionaires and millionaires can wield excessive influence over elections. Minister for Special State Affairs, Don Farrell, emphasized that the reforms aim to democratize the electoral process and prevent candidates from needing the backing of the wealthy elite.
However, the teal independents, who benefitted significantly from Climate 200’s financial support, have strongly opposed the reforms. Zali Steggall, Member of Parliament for Warringah, confronted Farrell in a parliamentary hallway, accusing the major parties of acting out of fear of the growing influence of independent candidates. Kate Chaney, who led the negotiations for the teal movement, criticized Labor for prioritizing its own interests over the people’s desire for new leadership.
The reforms also include a reduction in the threshold for the public disclosure of donations, from $16,900 to $5,000. Critics argue that this measure might not have the intended transparency effect, as large donors can still contribute smaller amounts to multiple party branches, evading full scrutiny.
James McGrath, a Liberal-National Party senator, expressed support for the new laws, arguing that they would curb the influence of organizations like Climate 200. He claimed the reforms were necessary to stop “vested interests” from manipulating election outcomes.
Doug English, a major Climate 200 donor and co-founder of Culture Amp, expressed concern about the reforms, fearing they would hinder new independent candidates from challenging the major parties. Despite this, he reaffirmed his support for Climate 200 and its efforts to bring about meaningful political change.
Holmes à Court, though silent on the matter, has previously described Climate 200’s mission as a “David and Goliath” struggle, highlighting the overwhelming power of the major parties in contrast to the comparatively limited resources of independent candidates.
As the new laws are set to reshape the political landscape, the future of independent candidates and their financial backers like Climate 200 remains uncertain.
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