KEY POINTS:
The Electoral Commission will act as a go-between for most anonymous donations to political parties under changes to the Electoral Finance Bill.
It will only be allowed to pass on $240,000 to parties - anything they receive over that limit will be "returned to sender".
At present there is no limit on receiving donations, but donations over $10,000 to a party have to be declared.
That will remain. But under the new law, if Labour musters enough support, anonymous donations paid directly to an individual candidate, a party or to a registered third party will be limited to $1000.
Anonymous donations over $1000 will be channelled through the Electoral Commission.
The total any party can receive of anonymous donations over $1000 will be $240,000. That represents 10 per cent of the total amount a political party can spend in election year, under a new regulated period starting on January 1.
No individual will be able to give any more than $36,000 anonymously - that figure being 15 per cent of the $240,0000 cap.
Registered third party election spending will be capped at $120,000 - twice as much as the original $60,000 - and there will also be a limit on how much an individual can give anonymously to a third party - $12,000, being 10 per cent of the cap.
Trust donations will be required to specify their source.
The regime will protect anonymous donations from disclosure and is the result of backroom deals between the Greens and Labour.
The Green Party's major concern has been a more transparent donations regime.
It is understood to have agreed to Labour's key wish to keep the longer regulated period starting in January 1 of election year in return for the concessions on donations.
The Electoral Commission's new role as a conduit is part of a bid to ensure that a party's policies can't be bought under the table and that anonymous donations are anonymous.
There is a widely held view that while many donations are listed as anonymous, parties do know who their large donors are and could be more amenable to accommodate their interests.
National has been the largest recipient of anonymous and trust donations but Labour, too has received a large number of anonymous donations over the years.
The bill is expected to be reported back from select committee on Monday.
Deputy Prime Minister Michael Cullen told Parliament yesterday that it was likely to receive its second reading on Thursday next week.
The bill is no longer expected to have a clause giving government departments an exemptions from the provisions of the bill.
War chests
Anonymous and trust donation totals to Labour and National for the past five years:
2002
Labour $390,088
National $435,217
2003
Labour 0
National 0
2004
Labour $85,000
National $275,077
2005
Labour $315,000
National $1.78 million
2006
Labour 0
National $146,166
