The mayor of one of Australia's biggest councils has been accused of misusing his position by voting for planning changes that favoured developers who donated money to his political campaign.

Key points: Logan City Mayor Luke Smith voted on planning changes that benefited donors to his $377,000 campaign fun

Logan City Mayor Luke Smith voted on planning changes that benefited donors to his $377,000 campaign fun Calls for state Local Government laws to be changed

Calls for state Local Government laws to be changed Mayor Smith to give evidence at Crime and Corruption Commission on Tuesday

Two councillors at Logan City, in south east Queensland, believe Mayor Luke Smith acted "immorally" and "with a conflict of interest", and are calling for changes to the state's local government laws.

Councillor Smith received $377,000 from developers and other businesses that was channelled into a campaign fundraising company called Logan Futures.

Two of the biggest donors were Taiwanese and Chinese-owned businesses who have developments that will benefit from a Logan suburb's new planning scheme supported by Cr Smith.

SKL Cables gave more than $40,000 to Logan Futures, while Chin Hong Investment Corporation was the largest donor, contributing $80,000.

Cr Smith received another $260,000 in donations to Logan Futures from other developers and business owners during his 2016 mayoral campaign.

In March, the mayor voted for planning changes in a suburb of Logan that waived developer fees of up to $1 million, eased building height restrictions and relaxed car parking requirements for two precincts.

In those precincts, SKL Cables has an application that will benefit from the proposed development changes, and Chin Hong Investments owns a major shopping mall which it's believed there are plans to develop.

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Mayor hauled before Crime and Corruption Commission

Queensland's Crime and Corruption Commission (CCC) is investigating the conduct of a number of candidates in last year's local government elections.

The CCC's Operation Belcarra has conducted a series of rare public hearings, which have now been expanded to include Logan City Council.

At the same time Logan City Council was added, the terms of reference for the inquiry were expanded to include whether candidates "unlawfully influenced a council decision in relation to a development application in favour of a donor".

Cr Smith and two associates of his donors, Terry Yue and Kuo Sing Tiong — also known as Samuel Tiong — have been summoned to give evidence at the hearings which restart on Tuesday.

The mayor would not comment to 7.30 on any of the concerns raised by councillors about his campaign fund or council decisions favouring donors.

"I am confident that the outcome of these hearings will inform positive changes for future candidates, however, as this is an open investigation I cannot provide further commentary which may impact the upcoming hearing," he said.

Economist Cameron Murray has been an expert witness at the hearings and said Cr Smith's campaign fund was particularly large.

"That was an enormous amount. I think the second highest was at Ipswich, [for Mayor] Paul Pisasale, who had $218,000 or so," Mr Murray said.

"The average or the typical amount for a councillor is zero. Most councillors across the state get nothing."

Planning changes benefit Luke Smith's donors

Logan City councillors, Darren Power and Lisa Bradley, accuse Mayor Luke Smith of misusing his position. ( ABC News: Alexandra Blucher )

In March, the council led by Cr Smith changed the planning rules for two precincts in the Logan suburb of Springwood.

Cr Smith voted in support of the changes at the council meeting, some of which need to be signed off by the State Government.

"The problem with development now is that there are seven precincts and only two precincts are being looked after," said Logan City councillor Darren Power, who opposed the planning changes.

SKL Cables, which donated $40,500 to Cr Smith's campaign, owns property in one of the precincts.

Application for development for 22 Carol St, Springwood. The site is owned by SKL Cables. ( Supplied )

Before the changes, the company had lodged a 15-storey development application for units, a proposal that would have been in breach of the old height restrictions.

A month before the 2016 council election, Mayor Smith declared his support for the watering down of development rules in Springwood.

"There is a live development application for a 15-storey building in Carol Avenue," he told a business breakfast gathering in a video seen by the ABC.

"These are … projects that I have worked with behind the scenes to get to the stage they are in."

The proposed Carol Avenue development site in Springwood ( ABC News: Alexandra Blucher )

Logan City councillor Lisa Bradley voted against the planning changes this March and said the development could now get automatic approval.

"[SKL Cables] were asking for 15 storeys and the planning scheme said 10 storeys, so basically they will be legally allowed to have that now," Cr Bradley said.

She believed it was a matter of principle Cr Smith did not declare SKL Cables was a donor when voting.

"What's transpired is quite immoral and the area I represent might be affected by that, so coming out publicly isn't an easy decision," she said.

"I believe that the Mayor should have disclosed that he received financial benefits during the election campaign and that his donors will actually benefit greatly from the decision that was made on the 14th of March.

"I believe that this is a material conflict of interest … however, the Mayor didn't disclose that as a material conflict of interest."

Cr Power said the public would expect Cr Smith to be more transparent.

"I think the intention was there and he knew what he was doing," Cr Power said.

"He's been able to achieve what he needed for the people who donated to him, and if [the State Government doesn't] change the rules this will become an epidemic."

Springwood Shopping Centre, which is owned by Chin Hong Investment Corp., a donor to Luke Smith. ( ABC News: Alexandra Blucher )

Cr Smith's biggest campaign donor, Chin Hong Investment Corporation, owns a shopping mall in the sections of Springwood affected by the planning changes.

It's believed the company has plans to redevelop the site.

"To me, I think they're going to benefit hugely because they are one of the biggest land owners in that precinct," Cr Power said.

"I mean take [away] all those restrictions, no development fees, it's a financial windfall."

He said Cr Smith had not acted illegally because a loophole in the Local Government Act allows councillors with a perceived or actual conflict of interest to still vote on planning changes.

He said it's crucial the laws are changed.

Both SKL Cables and Chin Hong Investments Corporation declined to comment.

Conflict of interest concerns over campaign fund director

Grant Dearlove, director of Logan City Council Mayor Luke Smith's campaign election fund. ( Supplied: Oliver Hume )

A director of Cr Smith's campaign election fund was Grant Dearlove.

At the time he was running the Logan Futures fund, Mr Dearlove was also the deputy chairman of the council's Invest Logan Pty Ltd, a for-profit entity designed to attract development and investment to the city.

But Cr Power said Mr Dearlove had a conflict of interest because he was also a non-executive director of the property development and marketing company, Oliver Hume Corporation, which has multiple projects in the Logan region.

Through a complex corporate structure, Oliver Hume Corporation wholly owns the subsidiary that acquired the projects.

One of those projects includes a 104-lot residential development which received approval by council officers early last year.

Residential development in Holmview owned by Oliver Hume. ( ABC News: Alexandra Blucher )

"I think that's a conflict of interest," Cr Power said.

"I think people who are put in those positions working for council should not have conflicts. They should be completely neutral and certainly not get involved in politics [and] certainly not get involved in election funds. I think that's distasteful."

Mr Dearlove denied to 7.30 he had a conflict of interest, saying he is not the director of the subsidiary running the development.

"If a conflict existed I would not have taken the role," he said.

"I am no longer a director of Logan Futures and I was not a director of the Oliver Hume Property Funds entity that acquired the potential developments nor do I have any involvement with them that creates a conflict."

As for his role in the mayor's campaign fund, he said he had no knowledge of the identity of donors, the types of donations, or what the funds were spent on.

He said these were all the responsibility of the Mayor.