Competition between candidates representing political parties is usually re
garded as a central feature of a liberal democracy. However, where competit
ion between parties fails to provide the public with an effective choice of
candidates, the real competition between candidates is displaced to a comp
etition for party endorsement within particular parties. The paper examines
the democratic implications of this displacement, and reports the findings
of an audit of candidate-selection procedures within the principal Austral
ian parties. The paper argues inter alia that the closed nature of electora
l competition and the public status of Australian political parties imply t
hat their internal affairs should be conducted democratically. The paper de
fines internal party democracy in structural and procedural terms. It appli
es realistic standards-realistic, because too much internal democracy could
render a party ineffective and restrict electoral competition-in conductin
g an audit of the candidate-selection rules and the composition of candidat
e-selection voting panels for the principal Australian parties. The paper c
oncludes with a suggestion for policy reform.