Major political parties' finances would take a thumping whack under recommendations to implement sweeping changes to Australia's donation rules.

A Greens-initiated parliamentary select committee released its report on Wednesday after 10 months looking at how to improve the donations regime.

Donations from developers, banks, mining companies and the tobacco, liquor, gambling, defence and pharmaceutical industries to political parties and candidates would be banned.

Foreign donations would be made illegal.

The report recommends introducing a cap on campaign spending and real-time disclosure of donations, which would be limited to $3000 per donor during one parliamentary term.

The committee conceded a small rise in taxpayer funds flowing to political parties would be needed to offset the proposed cap.

Government and Labor senators took issue with the report.

Liberal senator Jim Molan and Nationals' Barry O'Sullivan said it was a cynical political attack, with the findings beneficial to the Greens.

"We reject almost all recommendations in this flawed, partisan report," the coalition senators said.

But Greens leader and committee chair Richard Di Natale said the report threw open a curtain on the sordid underbelly of influence peddling in Canberra.

"Sadly this report shows that cash is still king in Australian politics, with big business happy to throw millions of dollars at our political leaders to buy influence," Senator Di Natale said.

He said major reform was needed to end the cosy relationship between the major parties and big business.

"If the Liberals and Labor knock back against these safeguards, it shows their true allegiance lies with corporate Australia, not the Australian people," Senator Di Natale said.

The report also recommended:

* harmonising state and federal laws on political donations within two years.

* establishing a federal integrity commission.

* changing the definition of gift under the Electoral Act to include payments made in return for membership subscriptions and attendance at events and fundraisers of candidates and political parties.