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ABC News
Politics
Exclusive by Josh Bavas

LNP may have to return another $5,000 donation from property firm

Queensland's Liberal National Party (LNP) is facing more headaches under strict new laws banning donations from property developers, and could be forced to return a $5,000 donation received earlier this month.

Brisbane-based company Ganra made the donation.

Ganra director Brian Flannery owns the majority of Ilwella, another business with property developer links that has already had another $5,000 donation returned by the LNP earlier this year.

His wife Peggy Flannery is the managing director of KTQ Developments, a property development subsidiary of Ilwella.

The new laws on political donations were passed by State Parliament in May and will not be proclaimed until next month.

However, the bill is retrospective, encompassing donations back to October 2017, when the ban was announced.

A ban on developer donations was recommended at a local government level by the Crime and Corruption Commission last year but it stopped short of suggesting the changes be implemented for state parties and candidates too.

'We will comply with the law'

An LNP spokesman would not confirm whether the party would be forced to hand back the new donation.

"The LNP will continue to comply with the act, as it always does," he said.

"The singling out of an entire industry and declaring it corrupt, while the Labor Party continues to receive donations from the CFMEU ... is contemptible.

"Many people within the property industry make significant contributions to their local community through giving to sporting groups, community organisations and cultural institutions."

The LNP still plans to challenge the ban on property developer donations in the High Court and expects the case to be heard early next year.

The Electoral Commission of Queensland (ECQ) will soon be in charge of policing the donations and determining what constitutes a "property developer".

An ECQ spokeswoman said party organisers would have to take the new rules seriously.

"Once the laws are proclaimed, recipients will have 30 days to return any prohibited donations received since 12 October 2017," the spokeswoman said.

"The ECQ is currently working with political parties and other stakeholders to advise them of the upcoming changes and we will continue to work with them when the new scheme commences."

In 2016, Ganra donated more than $30,000 to the Labor Party in Queensland.

ABC News has tried to contact Brian and Peggy Flannery for comment.

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