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Appendix E: apportioning election expenses between party and candidate

Advertising promoting an electorate candidate is an election expense of the candidate. Advertising promoting the party vote is an election expense of the party. These rules apply regardless of who pays the expenses.

Sometimes the dividing line is not clear and an apportionment may be necessary. A common example is an advertisement which calls for both the party vote and the election of a constituency candidate. The following example illustrates the principles to be applied, but we are happy to discuss particular problems.

Example

FACTS

(1) Party X is contesting the party vote. Mrs Y is standing in an electorate as a candidate for Party X.

(2) Party X and Mrs Y agree to arrange advertising to be displayed by billboard for 3 months during the regulated period.

(3) The content of the advertising comprises two parts. The first part asks voters to give their party vote to Party X. The second part asks voters to give their electorate vote to Mrs Y. From a content perspective, the advertisement can be factually judged as relating 40% to the party vote and 60% to the electorate vote.

(4) The total cost of the advertising is $13,000. An analysis of the total cost based on invoices and other evidence reveals the following:

A. Costs relating to the candidate vote
  • Artwork and photography of the candidate $1,000
B. Costs relating to the party vote
  • Artwork and photography of the party leader $2,000
C. Joint costs
  • General design, production, printing, material, assembly, transport $8,000
  • Site rentals paid for 3 months during the regulated period $2,000
Total election expenses $13,000

 

ALLOCATION OF COSTS

Some costs clearly relate to the candidate (A in the example). Other costs clearly relate to the party (B in the example). The joint costs (C in the example) require apportionment on a factual basis which in this example means 60% of those joint costs will be allocated to the candidate and 40% allocated to the party.

The expenses should therefore be returned as follows:

Candidate  Party  
A. Artwork and photography of the candidate $1,000 B. Artwork and photography of the party leader $2,000

C. Joint costs

General design, production, printing, material, assembly, transport 		$4,800 (60%)

C. Joint costs

General design, production, printing, material, assembly, transport 		$3,200 (40%)
Site rentals for 3 months $1,200 (60%) Site rentals for 3 months

$800

(40%)
Candidate’s return of expenses $7,000 Party’s return of expenses $6,000

This result is not affected by the payment arrangements (if any) made between the candidate and the party. If each pays the share allocated to them no other issues arise. But if, for example, the party pays the whole $13,000, the candidate would need to disclose in her return a donation of $7,000 from the party.