The national integrity commission should have powers to tap phones and use undercover officers to investigate alleged corruption, according to Queensland’s anti-corruption body.

The Crime and Corruption Commission has called for the covert powers in a submission to a parliamentary inquiry examining crossbench proposals for a national body, championed by MP Cathy McGowan and Greens senator Larissa Waters.

In December the Morrison government proposed creating the national integrity commission within the Australian Commission for Law Enforcement Integrity because it has “serious investigative tools” to build briefs against people who have acted corruptly.

The attorney general, Christian Porter, has said the Coalition’s preferred body would have 150 staff and a budget of $125m over four years, but its powers are still the subject of public consultation.

In its submission, the CCC noted the crossbench bills would give the integrity commission power to compel evidence, seize documents with a warrant, and use federal police or other authorised officers to make arrests.

But it said the bill appears to leave it without powers to set up operations with assumed identities, surveillance devices and telecommunications interception.

It recommended the integrity commission gain these powers, which it described as “often essential to the investigation and detection of corruption offences”.

The CCC said it was important for the integrity commission to “have power to continue and complete investigations and other inquiries into corruption issues notwithstanding any pending trial”.

It said the bills lacked “protection against contempt proceedings for NIC investigations and other inquiries related to corruption issues” which could “severely compromise the capacity of the NIC to conduct and complete effective investigations”.

The CCC called for a provision equivalent to Queensland’s, which allows corruption investigations to continue with closed hearings if to do otherwise would prejudice the accused’s right to a fair criminal trial.

The CCC commended the aims of the national integrity commission, suggesting an independent anti-corruption body will “promote public confidence in commonwealth institutions and advance a national whole of government approach to the reduction of public sector corruption”.

The body should also have the “express power to give intelligence information” to other entities, such as state anti-corruption and law enforcement agencies, it said.

In 2016 the commonwealth ombudsman noted while the ACLEI has special powers to investigate corruption – including phone taps – it lacks resources to build a covert operations unit and electronic surveillance capabilities.

In August the Australia Institute’s expert panel of former judges proposed a design for a federal anti-corruption commission with a broad jurisdiction and the ability to hold public hearings, but did not express a view on covert surveillance powers and phone taps.

The Victorian Inspectorate – which oversees that state’s integrity functions including the Independent Broad-based Anti-corruption Commission – expressed concern the federal equivalent does not have enough independence.

It cited the fact the proposed parliamentary inspector could be removed by the presiding officers in parliament, the president of the Senate and speaker of the House of Representatives, and is dependent on them for staff and resources.