Healthcare sector’s political donations: What to expect ahead of the federal election

Ahead of the upcoming federal election, attention turns to the financial contributions to major political parties. The Australian Electoral Commission’s recent release of data for the 2023-24 financial year reveals a total of 1,461 declared donations, amounting to over $23 million, constituting nearly 15% of the parties’ total receipts.

Federal donation rules have long lagged behind state regulations, with the current threshold for public disclosure set at $16,300. Labor’s promise to lower this to $1,000, aligning with NSW, VIC, and QLD, has recently come under the spotlight. Under the current archaic system, it can take up to 18 months for donations to be disclosed.

Within the healthcare sector, 15 identifiable donors made 114 contributions, totalling just over $1.3 million, comprising nearly 6% of the total donations in the 2023-24 financial year. The distribution saw $788,000 (approximately 60%) going to the ALP, $391,000 (almost 30%) to the Liberals, and $148,000 to the Nationals.

Specifically, nine pharmaceutical companies contributed $522,000, with Bristol-Myers Squibb and Roche leading, followed closely by Novartis, Organon, and Bayer. Medicines Australia donated $179,000, while the Pharmacy Guild contributed a significant $403,000. Together, these organisations contributed over $1.1 million, representing more than 80% of the total healthcare sector donations.

In addition, two medical technology companies, Johnson & Johnson and Medtronic Australasia, donated $139,000, and the health insurance sector, represented by nib and the Members Health Fund Alliance, contributed $85,000. Notably, Johnson & Johnson’s donation may encompass both its medical technology and pharmaceutical arms.

While the vast majority of donors supported both major parties, three companies including Eli Lilly, Merck, and nib, exclusively donated to the ALP.

Although Labor has proposed reforms for near real-time disclosure of donations, uncertainties remain about passing such legislation before the impending election.

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