Property developers are welcome to spend "an unlimited amount of money", but just not give their cash to a political party, the state of Queensland has argued.

The Palaszczuk Labor government passed laws last year, backdated until before the 2017 Queensland election, banning property developers from donating money to state and local government politicians and parties.

Gary Spence has taken his opposition to donation laws to the High Court. Credit:Karleen Minney

Then-LNP president Gary Spence, also the chairman of engineering consultancy PeakUrban, launched a challenge of the laws in the High Court in mid-2018 and in December resigned his position on the LNP.

He said the laws prevented him from legally playing an active role in the leadership of the party ahead of the federal election due to his role in the property development industry.