The Government will cap anonymous donations local election candidates at $1500.
Local Government Minister David Carter announced the proposed changes to the donation provisions of the Local Electoral Act today.
Mr Carter said the amendments reflected growing public concern about transparency and accountability in candidate donations, in particular anonymous donations.
The change will also amend the reporting and recording obligations for anonymous donations and introduce penalties for non-compliance.
"They will bring the Act more into line with the Electoral Act which governs the conduct of parliamentary elections and, in doing so, will help build trust in the local electoral system," he said.