4.1 Election expenses

Candidates no longer need to appoint a financial agent for the purposes of candidate expenses and donations.

A candidate’s election expenses in a by-election must not exceed $50,000 (including GST).

Election expenses for a by-election include any advertising expenses incurred in relation to a candidate advertisement that:

• is published, or continues to be published, during the regulated period, and
• is promoted by the candidate or any person (including a registered promoter) authorised by the candidate.

Candidates therefore need to account for the cost of advertisements that they have authorised to be published in the period from the day after the publication of the Gazette notice for the by-election and until the close of the day before polling day.

• the cost incurred in the preparation, design, composition, printing, postage and publication of the advertisement, and
• the reasonable market value of any materials used for the advertisement, including materials provided to the candidate for free or below reasonable market value.

A candidate’s deposit or the costs of food, hall hire, surveys or opinion polls, volunteer labour, or replacing materials destroyed through no fault of the candidate are not election expenses. The cost of any framework that supports a hoarding (other than a commercial framework) is no longer an advertising expense.

The costs of candidate advertisement signage on campaign cars and other forms of mobile candidate advertising are election expenses. However, advertising expenses do not include the running costs of any vehicle used to display an election advertisement if the use of the vehicle for that purpose is not the subject of a contract, arrangement or understanding for payment.

Expenses cannot be apportioned between elections. If materials such as banners are purchased and then re-used in subsequent elections, at each subsequent election you must account for the reasonable market value of the materials as an election expense. We advise candidates to err on the side of caution when determining 'reasonable market value'. We suggest that candidates either use the price that was originally paid for the item, or if this is not known, what the item would cost to purchase now based on two quotes.

Expenses cannot be apportioned between a candidate and a third party promoter. If you authorise someone else to publish advertising encouraging people to vote for you, the cost of the advertising will form part of your candidate election expenses. The same costs will also be an election expense of the third party.

4.2 Paying expenses

Invoices for election expenses must be sent to a candidate within 20 working days of the official result being declared.  

The candidate must pay any bill within 40 working days of the declaration. It is an offence not to do this. Sections 205H and 205I of the Electoral Act set out a procedure to follow if a bill is disputed.

4.3 Election expenses paid for outside the regulated period

Expenses paid for before the commencement of the regulated period must be included in the return to the extent to which they relate to election advertisements published during the regulated period.  

Where a candidate advertisement is published before and during the regulated period, the candidate is responsible for apportioning the advertising expenses so that only a fair proportion of the expense is attributed to the regulated period.

4.4 Candidate donations

A candidate donation is a donation of money, goods or services that is made for use in the candidate’s campaign.  

Candidate donations and contributions to donations of more than $1,500 (inc GST) are required to be declared in the candidate return of expenses and donations. A series of donations or contributions made by one person that adds up to more than $1,500 must also be declared.

• Where a candidate is provided with goods or services that have a reasonable market value greater than $300.
• Where a candidate is provided with discounted goods or services and the reasonable market value of the goods or services is greater than $300 the difference between the contract or agreed price and the reasonable market value of those goods and services is a donation. 
• Where a candidate sells over-valued goods or services the difference between the price paid and the reasonable market value is a donation. 
• Where credit is provided to a candidate on more favourable terms than those prevailing at the same time for similar credit, the value of the favourable terms is a donation.

The following are not a candidate donation:

• volunteer labour,
• goods or services provided free of charge to a candidate, or to any person on the candidate’s behalf that have a reasonable market value of $300 or less, or
• money provided by the candidate for his or her own campaign.

If a person or organisation gives or pays for goods or services that would otherwise be candidate election expenses, or a candidate’s party gives or pays for expense items, the reasonable market value of those items, whatever their value, should be recorded as an election expense. If the reasonable market value of the items exceeds $300 it should also be recorded as a donation. 

4.4.1 Donations made up of contributions

A donation can be made up in part by funds contributed by more than one person (contributors), for example where there is a collection or whip-round for a candidate’s campaign. 

The total proceeds of a collection or whip-round are treated as a donation under the Electoral Act. The person who collects the money will normally be the donor. The individuals who contribute to the collection are contributors for the purposes of the Act.

If a donation, other than an anonymous donation, is made up of contributions, the transmitter or donor must tell the candidate:

• the name and address of the donor, and
• whether the donation is made up of contributions, and
• the total amount of contributions of $1,500 or less, and
• in the case of contributions greater than $1,500, the name, address, and contribution of each contributor and whether any of them are ‘overseas persons’.

If the candidate knows, or has reasonable grounds to believe, that the donor has failed to supply information about contributions, the whole donation must be returned to the donor.

4.4.2 Transmitted donations

A donation can be made either directly by the donor to the candidate or indirectly by a transmitter who transmits a donation to the candidate on someone else’s behalf, for example via a lawyer’s trust fund. Any person who receives a candidate donation on the candidate’s behalf must transmit it to the candidate within 10 working days.

When transmitting a donation, the transmitter must tell the candidate:

• whether the donation is being transmitted on behalf of a donor,
• the name and address of the donor,
• whether the donation is made up of contributions,
• the total amount of contributions of $1,500 or less, and
• in the case of contributions greater than $1,500: the name, address, and contribution of each contributor and whether any of the contributors are ‘overseas persons’ (see paragraph 4.6 below).

Where a transmitter does not disclose the name and address of the donor, the donation must be treated as an anonymous donation (see paragraph 4.5 below). 

4.5 Anonymous donations

Candidates are not allowed to retain anonymous donations exceeding $1,500. An anonymous donation is a donation made in such a way that the candidate who receives the donation does not know the identity of the donor and could not, in the circumstances, reasonably be expected to know the identity of the donor.

If a candidate receives an anonymous donation greater than $1,500, he or she may retain $1,500 of that donation. The balance of the donation must, within 20 working days of receipt, be paid to the Electoral Commission for payment into a Crown bank account.

4.6 Overseas donations

Candidates are not allowed to retain donations or contributions of more than $1,500 made by an overseas person.

• an individual who resides outside New Zealand and is not a New Zealand Citizen or registered elector
• a body corporate incorporated outside New Zealand
• an unincorporated body that has its head office or principal place of business outside New Zealand.

If a candidate receives a donation from an overseas person exceeding $1,500, he or she can retain $1,500 of that donation. The balance of the donation must, within 20 working days of receipt, either be returned to the overseas person who made the donation, or if this is not possible, be paid to the Electoral Commission into a Crown bank account.

If a candidate receives any donation from a donor who is not an overseas person that includes a contribution from an overseas person greater than $1,500, the candidate must return the whole donation to the donor. If that is not possible, the candidate must forward the whole donation to the Electoral Commission for payment into a Crown bank account.

4.7 Keeping records of expenses and donations

Candidates must take all reasonable steps to keep records of all candidate donations received (even donations of less than $1,500) and all candidate election expenses. Candidates must keep invoices and receipts for all election expenses of $50 or more.   Records have to be retained for 3 years after polling day. 

4.8 Return of election expenses and donations

All candidates are required to file a return of candidate expenses and donations with the Electoral Commission. 

If there are no election expenses or donations to report on, the candidate must file a nil return.  

• made on Form M30-Cand Exp-By, and 
• filed within 70 working days of polling day (this date will appear on the return).

The return form (M30-Cand Exp-By) is available through the Electoral Commission or at www.elections.org.nz.

Part 1 of the return form concerns candidate donations. To complete the requirements of this part of the return, the candidate will need to be able to provide details about all donations or contributions of more than $1,500. This includes more than one donation or contribution made by or on behalf of the same person for use in the same campaign that when aggregated adds up to more than $1,500.

For donations of more than $1,500, other than anonymous donations or overseas donations, the candidate will need to provide the following details:

•  the name and address of the donor, and
• the amount of the donation or, in the case of aggregated donations, the total amount of the donations, and
• the date that the donation was received or, in the case of aggregated donations, the date each donation was received, and
• whether the donation is made up of contributions of more than $1,500, and if so:
  • the name and address of each contributor, and
  • the amount of each contribution made by the contributor, and
  • the date on which the donation to which the contribution forms part was made.

 For anonymous donations exceeding $1,500, the candidate will need to provide:

• the date the donation was received, and
• the amount received, and
• the amount paid to the Electoral Commission and the date payment was made.

For donations by overseas persons exceeding $1,500, the details required are:

• the name and address of the overseas person, and
• the amount of the donation or, in the case of aggregated donations, the total amount of the donations, and
• the date that the donation was received or, in the case of aggregated donations, the date each donation was received, and
• the amount paid back to the overseas person or paid to the Electoral Commission, and the date that such payment was made.

For contributions exceeding $1,500 by overseas persons to any candidate donation, the candidate will need to provide:

• the name and address of the overseas person, and
• the amount of the contribution, and
• the date on which the related donation funded from the contribution was made, and
• the amount paid back to the donor or paid to the Electoral Commission, and the date that such payment was made.

Part 2 of the form requires the candidate to provide details of all candidate election expenses incurred, including expenses incurred by any person authorised by the candidate. 

The advertising expenses of unregistered promoters and registered promoters that the candidate has authorised need to be included in Part 2 of the form. 

Candidates who fail to meet these requirements are committing offences and may be referred to the Police.

The returns are open to public inspection and will be available on the Electoral Commission’s website.

4.9 Return of nomination deposits

If you receive 5% or more of the votes cast for all candidates in the electorate you are entitled to a refund of the $300 deposit paid when you were nominated.  A deposit cannot be refunded until you have filed your Return of Election Expenses and Donations.