New South Wales’s laws prohibiting property developers from making political donations have been upheld by the high court as a legitimate way of attempting to prevent corruption.

The case was brought by property developers, including former Newcastle mayor, Jeff McCloy, who made contributions to the election campaign of former Liberal MP Tim Owen in 2011.

It was argued that banning donations affected “the freedom of political communication by restricting funds available to political parties”, a judgment summary, issued by the high court after Wednesday’s decision, said.

That was unanimously rejected by the court.

“The provisions are a legitimate means of pursuing the legitimate objective of removing the risk and perception of corruption and undue influence in NSW politics,” the judgment summary said.

“The court held that the provisions in fact enhance the system of representative government which the implied freedom of political communication protects.”

The laws also cap political donations at $2,000 per person each financial year for contributions to a candidate and $5,000 annually from individuals to registered political parties.