The government's proposed Commonwealth Integrity Commission has been labelled "weak" and "inadequate" by Indi MP Helen Haines.
Attorney-General Christian Porter released details of the draft legislation on Monday, which could involve public servants could have their phones tapped in corruption investigations, but not hold public hearings for anyone in the public sector division, which covers 80 per cent of the public service.
It comes two years after the government promised a commission to tackle corruption.
Dr Haines said her own integrity commission bill, introduced seven days earlier, forced the government's hand.
"Today's release is also clearly the result of pressure from inside the government's own party room and from the Australian public sick of scandals and excuses. This is a victory for public scrutiny and accountability in an integrity vacuum," she said.
"It is clearly misleading for the Attorney-General to claim the CIC has 'more powers than a Royal Commission'.
"It would also only be able to investigate behaviour that constitutes a criminal offence, meaning it would have no jurisdiction over cases of non-criminal corruption."