'We've seen too often the risks associated with councillors accepting donations'

In October, Labor introduced the Implementing Belcarra bill, following a crime watchdog investigation into corruption allegations in local government, but it lapsed when the election was called.

Reintroducing the bill, Local Government Minister Stirling Hinchliffe said it would ban donations from property developers to election candidates, third parties, political parties and councillors and state MPs.

"We've seen too often the risks associated with councillors accepting donations from property developers, and then voting on development applications from those same donors," he said.

"Given the potential for conflicts of interest in these situations, we're seeking to prohibit political donations from property developers."

Mr Hinchliffe said people would be able to ask for a ruling from the Queensland Electoral Commissioner that they, or another entity, were not prohibited donors.

The laws were designed to be retrospective to the date the first bill was introduced, on October 12, 2017.

Any donations made on or after October 12 would need to be repaid within 30 days.

But no charges will be laid over any political donations received between October and the date when the bill becomes law, as long as they are repaid.

Both major parties stopped taking developer donations last year, ahead of the state election.

The Crime and Corruption Commission recommended the ban for councils, but Premier Annastacia Palaszczuk announced she would extend it to state politicians.

LNP president Gary Spence has described the ban on developer donations as a "full-on assault on democracy".

The LNP has flagged a potential legal challenge to the changes, with suggestions Mr Spence would have to resign because he would be considered a developer under the legislation.

"Labor's proposal goes well beyond what the CCC recommended with respect to local government," he said.

"I've been a member of the Liberal Party, and now LNP, since I was 23 years old and to now potentially be banned from participating in the political process is shocking."

Greens MP Michael Berkman said there should be a complete ban on corporate donations.

Mr Berkman did not rule out introducing amendments to the government's bill or a private member's bill.

"We'll need to look at what the government's proposed in some detail, whether we are able to make amendments that are effective within that legislative framework or need to propose private member's legislation is something that we'll have to work through," he said.

Mr Berkman also said there should be caps imposed on donations and electoral spending.

"Ultimately we need to get to a point where we do consider seriously the possibility of full public funding of elections," he said.

The bill would also establish an obligation on councillors to report another councillor's conflict of interest or material personal interest, where they believed, or suspected on reasonable grounds, that there was an interest that had not been declared.

The bill was referred to the Economics and Governance Committee.