The New South Wales division of the Liberal Party has been denied access to $4.4 million in public campaign funding after the state's electoral commission found it breached electoral laws in its 2011 victory.

Key points: Free Enterprise Foundation was used to "disguise" donations, report says

Free Enterprise Foundation was used to "disguise" donations, report says Foundation used to offer anonymity to favourable donors, including property developers

Foundation used to offer anonymity to favourable donors, including property developers Campaign funding won't be paid to Liberal Party until full disclosures made

The NSW Electoral Commission ruled that it will not hand over the funding because the Liberal Party's NSW division refused to disclose donors who helped bankroll its 2011 campaign via donations to the Free Enterprise Foundation.

In its ruling the commission concluded the Free Enterprise Foundation was used by senior Liberal officials as a means of offering anonymity to donors including property developers, who are banned from making political donations to NSW campaigns.

"In truth, the foundation had been used by senior officials of the party and an employed party fundraiser to channel and disguise donations by major political donors, some of whom were prohibited donors," the ruling read.

"When the foundation purported to pay the money to the Liberal party... it was in truth acting as an agent for the donors.

"At all times [the donors'] details should have been disclosed by themselves and the party, if the sums involved made them 'major political donors'."

The commission said it relied on evidence provided to the Independent Commission Against Corruption (ICAC) by senior Liberal party officials about "the involvement of other senior party officials constituting the party's finance committee".

Senator Sinodinos not a focus of inquiry

The finance committee included Senator Arthur Sinodinos, who was the state division's finance director and treasurer at the time.

The ICAC had not handed down its findings into Operation Spicer, which examined the Free Enterprise foundation and other alleged Liberal party slush funds, but Senator Sinodinos was not a focus of the inquiry.

The Electoral Commission said it would also be withholding future campaign and administrative funding from the NSW Division of the Liberal party until it discloses all reportable donations relating to its 2011 campaign.

The State Opposition Leader Luke Foley said Premier Mike Baird needed to intervene and pressure the Liberal Party's executives to disclose the donors.

"The public has a right to know and five years on the Liberal party continues to conceal, to hide, the identities of political donors, hiding them behind a front," Mr Foley said.

"Mr Baird promised higher standards of politics when he came to the Premiership.

"Why is it that the party he leads continues to hide the names of their political donors?"

Mr Foley said if Mr Baird would not step in, then the Prime Minister Malcolm Turnbull should.

"Prime Minister Turnbull's cabinet secretary Arthur Sinodinos was the treasurer of the Liberal party when this scam was going on," Mr Foley said.

"The Electoral Commission is right to say that the Liberal party must clean up its act.

"If Mike Baird refuses to come clean on who exactly who donated I'd be hopeful that Prime Minster Turnbull would make him and the NSW Liberals do it."

A spokesman for Senator Sinodinos said the issue was a matter for the NSW Liberal party.

In a statement, a spokeswoman for the Liberal Party said: "We are currently reviewing the NSW Electoral Commission's statement".