Bernardi vows to pay for flights taken with Hanson on Rinehart’s plane amid confusion about SA’s donations ban

Cory Bernardi, a One Nation candidate in South Australia, has committed to reimbursing the cost of flights he took on an aircraft owned by Gina Rinehart's company. This decision comes as South Australia's recently implemented political donation laws face scrutiny ahead of the state election scheduled for Saturday.

Senator Pauline Hanson also utilized the private aircraft for travel within the state. The flights, which occurred between March 14 and March 17, transported both Bernardi and Hanson to multiple regional locations, including Adelaide, Mount Gambier, Maitland, Port Lincoln, Whyalla, and Coober Pedy.

South Australia's Donation Regulations

South Australia's new electoral finance legislation, introduced before the current election cycle, prohibits political donations to parties, individual politicians, and candidates. The regulations include limited exceptions, such as allowing candidates to accept individual donations or loans up to A$5,000.

Bernardi's commitment to pay for the flights addresses concerns regarding potential breaches of these strict new rules. The cost of private air travel can be substantial, with hourly rates for such services potentially exceeding A$3,000.

Ambiguity in Application

The situation highlights complexities within the new laws, particularly concerning the distinction between federal and state political activities. Senator Hanson, a federal politician, had previously disclosed some of these flights on her federal register of interests, acknowledging S Kidman & Co, a Rinehart-affiliated entity, for the provision.

Bernardi, a candidate for the state's upper house, stated his expectation of receiving an invoice for the travel expenses, which he intends to cover personally. The South Australian Electoral Commission has refrained from commenting directly on the specific flights.

Electoral Commission Guidelines

The Electoral Commission has, however, emphasized that unregistered third parties incurring expenses over A$10,000 in relation to an election could face criminal charges. Neither Gina Rinehart nor her associated companies are registered as political donors or third-party campaigners in South Australia.

The incident underscores the challenges in interpreting and enforcing the state's donation ban, particularly when federal politicians and private entities are involved in state-level campaigning. The outcome of this situation may set a precedent for future interactions under South Australia's stringent electoral finance framework.

Implications

Country Impact: The incident could prompt a review of how federal and state electoral finance laws intersect, particularly regarding in-kind donations and travel for politicians operating across different jurisdictions. It may also influence future interpretations of 'political donations' in Australia.

Industry Impact: Private aviation companies providing services to political figures may face increased scrutiny regarding the nature and reporting of their services, especially in states with strict donation laws. This could lead to clearer guidelines for commercial transactions with political entities.

Market Impact: While direct market impact is limited, the situation highlights regulatory risk for individuals and corporations engaging with political campaigns. It could encourage greater transparency in political spending, potentially influencing corporate social responsibility frameworks related to political engagement.