Plan to scrap political donation cap defended by ACT Government

The ACT's Attorney-General has defended his Government's decision to scrap the current $10,000 cap on political donations.

The changes to ACT electoral funding laws are expected to pass the ACT Legislative Assembly on Thursday with the support of the Canberra Liberals.

ACT Attorney-General Simon Corbell said when it came to electoral funding legislation, the most important controls were in relation to expenditure.

"The ACT has very strict rules on expenditure and indeed we are reducing the amount of money per candidate that can be spent in an election campaign," he said.

"It will be less in the next election than it was in the last ACT election."

He said the ACT also had some of the strictest disclosure rules in the country, and they were not going to be changed.

"Any donation over $1,000 must be declared, and during the election period must be declared within a very short period of time," he said.

"We believe that an emphasis on disclosure and a cap on expenditure is the most appropriate way to prevent undue influence on political parties as a result of political donations."

Mr Corbell said abolishing the $10,000 limit on donations would remove an unintended incentive for donors to circumvent the electoral funding laws, therefore reducing transparency.

ACT Greens against electoral funding changes

It comes despite heavy criticism from the ACT Greens.

Last year Greens Minister Shane Rattenbury described the proposed changes as an unjustifiable act of self-interest.

"The deal Labor and Liberal have put together will see them get most of their funding from public expenditure, but they will then also be able to top that up with larger donations overall," he said.

"This is to the benefit of them and will provide a substantial windfall to both Labor and Liberal."

The changes to electoral funding laws will also increase public funding for ACT elections from $2 to $8 per vote.

Mr Rattenbury warned it would cause a net gain for the big political parties.

"It seems quite likely this will be a vote in the Legislative Assembly that goes 16 votes to one with only the Greens looking for a restricted approach to political expenditure," he said.