Two federal MPs, along with mayors and councillors from three south-east Queensland councils are facing an inquiry by the state's corruption watchdog over what it calls "possible criminal offences" during the 2016 local government elections.

Queensland's Crime and Corruption Commission (CCC) is looking at claims of candidate misconduct during the Gold Coast, Ipswich and Moreton Bay local government elections.

It is the CCC's first public investigation in at least five years and was launched after both the CCC and the Electoral Commission Queensland (ECQ) received complaints about financial dealings during last year's campaigns.

Under Queensland law, local government candidates who intend to align themselves with each other must publicly disclose their links when they nominate.

Kristyn Boulton received $30,000 from the LNP-linked Fadden Forum. ( Facebook )

The laws were introduced after a previous corruption inquiry found the 2004 Gold Coast City Council election was corrupted by secret funding from developers.

The inquiry that started today will hear from nearly 20 witnesses, including former Turnbull Government minister Stuart Robert, Labor backbencher Shayne Neumann, Ipswich Mayor Paul Pisasale and Moreton Bay Mayor Allan Sutherland.

Lobbyist and former Tony Abbott adviser Simone Holzapfel is also due to give evidence as part of Operation Belcarra.

Allegations of secret candidate bloc

The hearing is to begin with the Gold Coast City Council over allegations a secret bloc of candidates contested the election.

It has been alleged that Mr Robert funnelled at least $60,000 out of the fundraising arm of his Liberal National Party branch, the Fadden Forum, into the campaign of at least two "independent" Gold Coast candidates.

These included two of his former staffers, Kristyn Boulton and Felicity Stevenson.

The CCC inquiry is examining allegations the two independent candidates did not reveal where the money came from when confronted by rivals and voters during the campaign.

How to vote cards for independent councillors Allan Sutherland and Julie Greer. ( Supplied: CCC )

Voting cards for Moreton Bay independent councillors Mick Gillam and Allan Sutherland. ( Supplied: CCC )

Ms Boulton was elected in Division 4, but Ms Stevenson failed to win the Gold Coast hinterland seat of Division 5.

Mr Robert, a former veterans affairs and human services minister, resigned from the federal frontbench last year for breaching ministerial standards over a personal trip to China in 2014 with a friend and Liberal Party donor.

During that trip, Mr Robert witnessed the signing of a mining deal and held discussions with government officials.

Ms Holzapfel, a major donor to the Fadden Forum and a lobbyist for developers, will also take the stand today to face questions over her links with four candidates on the Gold Coast campaign.

It is alleged she helped them campaign as a bloc with the same political messaging.

In coming days, Cr Pisasale and Ipswich Deputy Mayor Paul Tully will be called to give evidence over their appearances on candidate how-to-vote cards.

A member of Federal Opposition Leader Bill Shorten's frontbench team, immigration spokesman Shayne Neumann, was caught up in the Ipswich probe over his support for staffer and friend Kylie Stoneman, who successfully ran as an "independent".

Both Mr Neumann and Ms Stoneman are due to give evidence on Friday.

Cr Sutherland will also be forced to face questions regarding political donations in Moreton Bay, while Gold Coast Mayor Tom Tate is due to give evidence next week.

All witnesses due to appear before the two-week inquiry have denied any wrongdoing.