MINOR parties could be stripped of up to a million dollars in electoral funding as the Newman Government overhauls the way cash is handed to politicians and political parties.

In a major reform of electoral funding laws, the LNP Government will require minor parties to achieve at least 10 per cent of the vote before they pocket any cash in a move that could threaten the viability of minor parties including the Greens and Katter's Australian Party.

The reforms have also scrapped caps on political expenditure and donations.

In exchange parties will have to declare donations of $12,400 or more on a monthly basis, reflecting federal donation requirements.

Until now political parties had to declare all donations of $1000 or more on a six and 12-monthly basis while donations were capped at $5300 per donor per year to a registered political party and $2200 per year to a candidate or third party.

The move to scrap the caps rolls back reforms brought in by the former Bligh government which had been decried by the LNP as a move to disadvantage them electorally, with unions exempt from the rules.

Attorney-General Jarrod Bleijie said the reforms created a level playing field with the monthly declaration requirement to keep politicians and political parties accountable.

Legislation to enact the reforms is expected to be introduced into State Parliament either at the end of this year or the start of next year.

''Rather than having political parties disclosing public funding and donations over a six-month and then a 12-month period, we actually have a monthly disclosure so within 20 days after a month ends, political parties will be required to update the registers on political donations within one month,'' Mr Bleijie said.

''That is a reform that I think the Queensland public will very much appreciate because they'll see what's going to political parties and, in fact, who's giving it to political parties.''

He conceded guests at fundraising dinners who paid per seat or per table rather than donating directly to a political party would not have to declare that under the changes.

But Mr Bleijie said he did not believe it was up to the Government to dictate how much a member of the public could donate and he insisted the system would be accountable.

''We believe that the people of Queensland should decide how much they give to political parties and when they give it,'' he said.

Opposition Leader Annastacia Palaszczuk, however, accused the Government of winding back the clock on electoral reform.

''Allowing donations of $12,399 in secret would be rightly considered to be a serious threat to the integrity of Government processes,'' Ms Palaszczuk said.

''They are winding back the clock to a time when big donations could be made in secret, while allowing political parties to spend as much as they can to try to buy an election.''

Mr Bleijie said from the next State Election, due in 2015, minor parties would need to secure 10 per cent of the vote rather than four per cent, before they were eligible for taxpayer funds.

The funding formula will also change from a reimbursement model to a cash per vote system but the amount per vote has not yet been determined.

''We are going back now to a dollar amount per vote. That means the more votes people get, the more money they will be entitled to,'' he said.

He said the move would discourage people from rorting the system and save taxpayers up to $1 million an election.

Minor parties accused the Government of trying to bully them out of the political playground.

Katter Party MP Robbie Katter said the changes would harm the democratic process.

''This Government seems to get excited about picking on the little guy,'' Mr Katter said. ''They are just trying to bully everyone else out of the schoolyard. They just want a duopoly in government.''

The Greens stand to lose the most from the reforms. They received only 7.53 per cent of the formal vote at the past state election. The Katter Party received 11.53 per cent.

Clive Palmer's United Party will also be disadvantaged.

Greens Senate candidate Adam Stone said the current model was protected from profiteering.

''The LNP is trying to protect its power base by frightening smaller parties away from contesting elections for fear that they will not secure 10 per cent of the vote and will be left financially disadvantaged. That's unscrupulous, and anti-democratic to boot,'' Mr Stone said.

Queensland University professor of law Graeme Orr said changing to public funding per vote, rather than reimbursement of a percentage of campaign costs, was simple and reasonable.

But he said scrapping the donation caps was a retrograde step with New South Wales and the ACT also adopting caps with the changes to benefit the government of the day.

''But moving to timely disclosure of donations is very commendable,'' Prof Orr said.

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