Pyne wants donors to be individuals

Only individual Australians would be allowed to give money to political parties in senior federal minister Christopher Pyne's dream world.

He'd like to see all donations banned except for those from individuals.

"I don't believe that the trade union movement or corporate Australia should be able to donate to political parties," Mr Pyne told ABC TV on Sunday.

"(People can) make the decision that with their after-tax income they feel strongly enough that they want to support a political party."

The education minister was commenting in the wake of an Independent Commission Against Corruption investigation in NSW into allegations Liberal MPs were involved in an election donation rort that funnelled more than $400,000 in secret donations through slush fund EightByFive.

NSW has cracked down in recent years to make it illegal for anyone other than individuals to donate and impose caps on how much cash can be given.

It has also specifically banned donations from property developers and tobacco, liquor or gambling businesses.