Australia passes landmark bill aimed at billionaires like Elon Musk after PM called out Tesla boss

Australia has officially passed a new law that will ban billionaires like Elon Musk from interfering in elections.

In February 2025, Australia passed the Electoral Legislation Amendment (Electoral Reform) Act 2025, which introduced major changes to how political campaigns are funded and disclosed.

According to the Australian government website, the legislation includes: "Reducing the disclosure threshold to $5,000, introducing expedited disclosure, introducing donation and expenditure caps."

The reforms are set to take effect on 1 July 2026.

Under the new rules, political parties will face spending limits of $800,000 per electorate and $90 million nationally.

The government argues these caps will end the political 'arms race' that has made 'big money' fundraising essential and created unfair electoral contests.

However, some critics say the limits are set too high and could actually benefit established parties. Because the caps only apply to individual electorates, major parties can simply redirect funding to must-win seats without violating the rules.

As Australians prepare for their federal election, Prime Minister Anthony Albanese made it clear that Elon Musk's interference would not be welcome.

"We have foreign interference laws in this country and Australian elections are a matter for Australians," the centre-left Labour Party leader told The Age newspaper on Tuesday.

Since last summer, the tech billionaire has become one of Donald Trump's most vocal supporters, earning himself a prominent position in the US president's inner circle.

Some sources claim the Tesla CEO is attempting to export his political influence globally.

Politico reported that Musk recently backed the right-wing Reform UK party in Britain, with speculation he may soon start funding them.

He also reportedly endorsed the far-right Alternative for Germany ahead of the snap federal election and criticised a Romanian court's decision to annul an election over alleged foreign interference.

Special Minister for State Don Farrell commented on Labour's plan to limit political donations, saying: "Labour's reforms will cap campaign spending, restrict big donors, and stop the arms race of donation drives and endless fundraising."

This isn't the first time Musk has locked horns with the Australian government. Last September, he called Australian officials 'fascists' after they pushed legislation aimed at regulating misinformation on social media platforms like his own X.

Meanwhile, Independent MP Kate Chaney voiced opposition to another aspect of the reforms including the increased public funding for political parties.

"The effect of increasing public funding is that political parties don’t have to fundraise because they’ve got their war chests. But any challengers do have to fundraise," she said, as per the Conversation.