Australia is introducing electoral expenditure caps for the first time, limiting federal political parties to A$90 million per party per year in campaign spending — a landmark reform aimed at reducing the outsized influence of wealthy donors and ending the fundraising arms race between major parties. However, the Grattan Institute, a prominent Australian policy think tank, argues the cap is set at more than double what is actually needed, estimating that A$40 million per party would be sufficient to fund a full national advertising campaign, targeted seat strategies, polling, and other outreach. The reforms also impose an $800,000 ceiling on spending within individual electorates, which critics warn may disadvantage independent candidates without established party recognition, prompting calls for a 50% spending allowance for new political entrants; the legislation faces a potential High Court challenge on grounds that it infringes on the implied constitutional freedom of political communication.