Queensland's property developer donation ban is valid

The High Court has ruled Queensland laws banning property developers from donating to political parties and candidates are valid.

The Palaszczuk Labor government passed laws last year, backdated until before the 2017 Queensland election, banning property developers from donating money to state and local government politicians, candidates and parties.

Former LNP president Gary Spence resigned his position with the party as a result of the donation ban. Credit: Felicity Caldwell

Then-LNP president Mr Spence, also the chairman of engineering consultancy PeakUrban, launched a challenge of the laws in the High Court in mid-2018 and in December resigned his position on the LNP.

He argued the laws prevented him from legally playing a role in the leadership of the party ahead of the federal election, including fundraising, due to his role in the property development industry.

On Wednesday morning, the High Court ruled the Queensland laws were valid.

However, part of the Commonwealth Electoral Act, which allowed federal candidates, politicians and parties to accept gifts despite any existing state laws, was ruled invalid.

The decision will likely have ramifications for fundraising efforts for the LNP in Queensland during the current federal election campaign.

Acting Attorney-General Stirling Hinchliffe said the government's commitment to transparency and accountability had been upheld in the highest court in Australia.

"The LNP has wanted to keep their donations a secret," he said.

"They have done everything they possibly could to keep them a secret, including using the Commonwealth Parliament and going to the highest court to hide donations.

"But the jig is up."

The Palaszczuk government introduced the donation ban for state and local government after a Crime and Corruption probe into corruption allegations in councils.

The CCC only recommended the ban apply to councils.

However, Deputy Premier Jackie Trad said if it was "good enough for one level of government, it's good enough for all levels of government".

"The Queensland government does have planning powers, very very strong planning powers. We are, essentially, the owners of land in Queensland," she said.

LNP deputy leader Tim Mander said the laws were politically-motivated.

"We don't think it's fair that one section of the community should not be allowed to be part of the political process," he said.

"Where in the meantime, the Palaszczuk government continues to receive wads of cash from dodgy trade unions."

Queensland Labor state secretary Julie-Ann Campbell called on the LNP to disclose all donations under the state's $1000 disclosure limit, instead of the higher federal limit, and "pay back any donations which are in breach of that law".

An LNP spokesman said the party would respect the outcome of the High Court case.

"Given that the reasons for the High Court's decision have not been published, it is not possible to comment further," he said.

The High Court will publish its reasons at a later date.