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VIC:High Court threat hangs over revamped donation laws

A second High Court challenge looms over state political donation laws that have again bent independent and minor party candidates' noses out of joint.

The Victorian government has unveiled replacement legislation after the High Court in mid-April struck out an entire section of the Electoral Act when it ruled donation exemptions created for nominated entities were unconstitutional.

It has left the state without any caps, limits on foreign donations or disclosure requirements ahead of the November election.

Under the bill debated in the lower house on Wednesday, political donations would be capped at $7500 over four years - up from $5000 - and the limit would be double for new candidates and parties.

Premier Jacinta Allan said the "new entrant" provision addressed the High Court's ruling and would establish a "more level playing field".

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