Liberals, Nationals win court challenge on election funding – The Age

"It's pleasing the judgment has come down the way it has, because of course it's an unintended consequence of Labor's legislation that created this situation," said Sam McQuestin, Liberal Party state director.

The Coalition had taken the VEC to the Supreme Court in late February, asking for transfers from the Liberal Party to the Nationals not to be treated as political donations, and for payments between the two parties to be exempt from the cap on donations.

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Under the Coalition funding arrangement, first announced in 2008, the two parties operate joint tickets in the upper house and split the proceeds of the VEC reimbursement, with the Nationals receiving one-third and the Liberals receiving two-thirds of the money.

Following the last state election, the VEC indicated it would not pay the one-third share to the Nationals because Liberal Party candidates had occupied the bulk of the first-preference votes.

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Liberals, Nationals win court challenge on election funding - The Age