The Premier Mike Baird says a High Court ruling, rejecting former Newcastle lord mayor Jeff McCloy's attempt to overturn developer donation laws, opens the way for national reforms.

Mr McCloy, a property developer, had been fighting the New South Wales developer donation ban, arguing it does nothing to prevent corruption.

He was last year forced to resign as lord mayor of Newcastle after he told the Independent Commission Against Corruption he had handed $30,000 in cash to three Liberal candidates during the 2011 election campaign.

The court found that given the history of corruption in New South Wales, a developer donation ban was legitimate.

In a statement, Premier Mike Baird says he is pleased the Court has supported the government's position.

Mr Baird says "the decision opens the way for consideration of national reforms to political donation laws at the Council of Australian Governments (COAG)."

Meanwhile, the New South Wales Government is being urged to do more to stamp out the risk of corruption by extending the ban on political donations by developers to include local councils.

Opposition leader Luke Foley said it is time those running for local councils were held to the same standard.

"You know, it's absurd that Mike Baird and I can run for Premier of the state and be subject to strict limits on what we can raise and spend," he said.

"But you can run for the ward of a suburban council and there's just no limits.

"The Parliament has to correct that anomaly and, by the end of the year, extend these caps on donations to all local government elections.

"So there's no debate any more about the validity of such laws.

"We ought to now proceed sensibly to extend them to local government elections."

"You can't have the Premier and Opposition leader in NSW subject to strict donations caps, but not candidates for suburban councils."