The narrowly-drawn ban is the first major electoral reform introduced this term, and has drawn the ire of the ACT Greens, who see it as a missed opportunity to introduce wider measures to strengthen electoral laws.

Despite a 2016 select committee urging the government to act on many other measures, including a loophole the CFMEU used in 2016 to spend almost double the third-party expenditure cap, the government looks unlikely to close that loophole.

Attorney-General Gordon Ramsay on Thursday introduced the government bill to enact the property developer donations ban, more than two years after Labor promised the ban during the 2016 election campaign.

He said the measures fulfilled a key election promise, part of Labor's power-sharing deal with the Greens, and were aimed at reducing any real or perceived risk of developers having undue influence on government decisions.

The ban would see corporations owned by developers banned from making political donations if they had an active development application before the planning authority, or had lodged three such applications in the preceding seven years.

The government has specifically exempted not-for-profit organisations and individuals from the ban, meaning groups including the Canberra Labor Club, other clubs, unions and associations not linked to property development will likely continue to be able to donate.

The proposed ban would have the biggest financial effect on the Canberra Liberals, which have continued to receive thousands in developer donations this year, while the ACT Greens do not take such donations.

ACT Labor received its last donation from a property developer, a $10,000 contribution from Geocon's Nick Georgalis, about two weeks before the party announced it would no longer receive such donations during the 2016 campaign.

But the ban would apply to those people directly connected to a development corporation, such as its directors or associates that may have links to the firm or individuals involved in the corporation.

The exemptions for not-for-profit entities, which would include clubs and unions, raises some questions, given groups including the CFMEU and many clubs are involved in property development to improve their financial fortunes.

Clubs also provide significant in-kind support to political parties, support which totalled $29,990 in 2017-18, about $18,000 of which was provided by the Canberra Labor Club to Labor.

But the government's bill also seeks to enhance donations transparency, with measures to ensure parties report donations of $1000 or more within seven days to the electoral commission, and ensure any donations beyond $1000 are reported in the same time frame.

Despite Chief Minister Andrew Barr last week saying the government planned to address potential loopholes that remained in the Electoral Act, no legislation has been forthcoming to date.

While Greens MLA Caroline Le Couteur backed the developer donation ban, she said the minor party wanted to go further, particularly reinstating a $10,000 cap on donations that was in place from 2012, until the major parties abolished it in 2015.

Ms Le Couteur said the Greens would be moving several amendments when the bill is brought back for debate in the Assembly next year, including seeking to exclude any donors that were not registered ACT voters.

The Greens also want public funding given to candidates who received one per cent of the vote in a given electorate, rather than only those who received four per cent or more; a measure which could make it easier for independents to be elected.

Ms Le Couteur said the minor party would also seek to close the loophole used by the CFMEU, to ensure third parties could not use multiple legal entities to exceed the $40,000 electoral expenditure cap.

The bill was adjourned for debate in the first sittings of 2019.