Change needed to donation system: Xenophon

Independent senator Nick Xenophon wants changes to political donations to end what he calls a "financial arms race" in Australian politics.

His call comes in the wake of revelations at the trade union royal commission that Opposition Leader Bill Shorten only this week declared a 2007 donation from labour-hire company Unibilt.

Senator Xenophon told ABC radio on Thursday that there needed to be more public funding of political parties and strict conditions on private donations, as well as a quicker disclosure system.