Just 20 per cent of $25 million donated to Tasmanian political parties in the past decade has been publicly disclosed, according to a new report from the University of Tasmania's Institute for the Study of Social Change.

Key points: Tasmania has the weakest political donation laws in the country, which only require donations above $14,000 to be declared

Tasmania has the weakest political donation laws in the country, which only require donations above $14,000 to be declared A new report into the laws recommends all donations about $1,000 are disclosed

A new report into the laws recommends all donations about $1,000 are disclosed The report also recommends donations be reported within seven days in the 12 months prior to the latest day an election can be called

The state has the weakest political donations laws in the country, but the report released today recommends a significant overhaul to bring Tasmania into line.

In Tasmania, political donations are governed by Commonwealth laws, which require only donations above $14,000 to be declared.

Disclosure does not occur until the February following the end of a financial year, which means in some cases a donation above the threshold may not be made public for 19 months.

As a result, some donations made to Tasmanian political parties ahead of last year's state election were not made public until February this year — and the origins of millions of dollars of other donations remain unknown.

In their report, the Institute for the Study of Social Change recommends that:

Candidates, parties and donors be required to report donations above $1,000, and spending above $1,500

Candidates, parties and donors be required to report donations above $1,000, and spending above $1,500 Candidates and parties produce separate disclosure reports

Candidates and parties produce separate disclosure reports Donations be reported within seven days in the 12 months prior to the latest date an election can be called, and six-monthly otherwise

Donations be reported within seven days in the 12 months prior to the latest date an election can be called, and six-monthly otherwise Campaign expenditure caps of $30,000 (indexed) per candidate and $750,000 per party be introduced

Campaign expenditure caps of $30,000 (indexed) per candidate and $750,000 per party be introduced The government provides modest funding to assist candidates with administrative costs of new obligations

The government provides modest funding to assist candidates with administrative costs of new obligations Third parties be required to report donations of $1,000 and above, and spending above $1,500

Third parties be required to report donations of $1,000 and above, and spending above $1,500 The government adopts a broad definition of political activity and spending

The Institute's Richard Eccleston said the changes would crucially allow voters to know where donations had come from before casting their ballots.

"The Commonwealth provisions are weak and inadequate," Professor Eccleston said.

Richard Eccleston says Tasmania needs to bring political donation laws in line with the rest of the states. ( ABC News )

"Over the last eight years all of the mainland states have introduced state-level reforms. These types of disclosure provisions that we're recommending would really ensure that Tasmania is best practice, bringing us into line with New South Wales, Victoria and Queensland.

"We just don't know who has funded the political campaigns of major parties, and that does tend to erode confidence and trust in the political system and in our democracy.

"Voters can make an informed choice if they're aware of who is contributing to the political campaigns of candidates and parties."

Weak donation laws 'corrupting our democracy'

Professor Eccleston said the threshold of $1,000 had been chosen, rather than no threshold, in order to make administration and compliance easier, and to allow people to continue making small anonymous donations.

He said people such as public servants and academics should continue being able to express political views through small donations without being identified.

"Most jurisdictions around the world and best practice across Australia is to have a $1,000 threshold and we're saying that Tasmania should reflect that best practice," Professor Eccleston said.

Professor Eccleston said Tasmania's use of the Hare Clark electoral system — where candidates from the same political party compete against each other for election — meant candidates and parties should provide separate disclosure reports.

Greens Leader Cassy O'Connor says Tasmanians need to know who is donating to political parties. ( ABC RN: Emma Lancaster )

He said the Tasmanian Government should consider the recommendations as part of the review of the Electoral Act, which is underway.

Greens leader Cassy O'Connor said political donations reform was one of the most foundationally important aspects of Tasmania's democracy.

"Tasmanians need to know who is donating how much money to which political party," she said.

"At the moment they don't know until a year after the election. We need donations reform in Tasmania. We've got the weakest donations laws in the country and it's corrupting our democracy."

A Government spokesman said community feedback on an interim report on the review of the Electoral Act was being considered.