However, there are crucial differences between the two states.

Blanket ban

The NSW legislation requires parties to have up separate accounts for state and federal elections, with the ban on developer donations only applying to the state election account.

Under the Queensland laws, there is a blanket ban on donations from property developers to political parties that are registered in the state. It has no provision for separate accounts. This means any donation from a developer – regardless of whether it is for state or federal election – will break the state law, a situation that has implications for the looming federal poll.

Mr Spence resigned as LNP president in December and is running the High Court action. He has described the ban as a "full-on assault on democracy" and fears his position as chairman of engineering consultancy firm PeakUrban makes him a "prohibited donor".

Justice Stephen says the challenge to Queensland's ban on developer donations "bristles with constitutional points". Andrew Meares

The Labor government acted after an investigation by Queensland Corruption and Crime Commission into numerous funding and disclosure allegations against candidates who ran in the Gold Coast, Moreton Bay, Ipswich and Logan council elections for 2016.

In its amended defence field on December 19, the Queensland government concedes the "discussion of matters at a state, territory or local level might bear upon the choice that the people have to make in federal elections and that, therefore, political communication at a state level may have a federal dimension".


States' rights

However, it says any effect will be "indirect and insubstantial because the act of making a political donation is not itself a political communication".

It argues a new provision of the Commonwealth Electoral Act, section 302CA, will "purport to confer a right to give receive and retain political donations which are expended for the purpose of influencing the choice of state electors in a state election" and is therefore invalid.

Queensland Premier Annastacia Palaszczuk ... the Labor government passed laws banning developer donations in May 2018. Jono Searle

"The Constitution is premised on the continuing existence of the states as independent bodies politic with their own systems of representative and responsible government," the defence says.

The Victorian and ACT governments – both Labor – have given notice that they will join the case and others could also intervene given the implications for state and federal relations.

Justice Gageler set down a timetable which requires submissions to be completed by March 7, ahead of a possible hearing the following week.