Newcastle mayor and property developer Jeff McCloy has admitted to the Independent Commission Against Corruption that his family company made a potentially illegal donation of almost $10,000 to Liberal MP Tim Owen’s campaign before the last state election.

In documents filed in the High Court, Councillor McCloy says the McCloy Group ‘‘made a gift in the amount of $9975’’ to the Liberal Party’s 2011 campaign for the seat of Newcastle.

High Court challenge: Newcastle Lord Mayor Jeff McCloy. Credit:Jonathan Carroll

The donation was made on March 21, five days before the poll which saw Labor’s Jodi McKay narrowly defeated by Mr Owen.

Property developers have been banned from making political donations in NSW since 2009.