Premier Daniel Andrews and Special Minister of State Gavin Jennings announce a reform of the political donations system. Credit:Chris Hopkins Notable in particular is the proposal to effectively cap all donations at $1000, whether from individuals, companies, unions or other organisations. If it survives the political row that's sure to follow Monday's announcement, and make its way through parliament, it would give Victoria the lowest donation cap in the country. Here, finally, is the recognition that donors do seek influence through large cash gifts. A strict cap on such contributions will make it much more difficult for developers and builders, bankers, the alcohol industry - those who rely on state government decisions and who are the big donors - to use money for political leverage. It's true that such restrictions will never completely clean up our political system. Loopholes will be found and exploited. Other countries with tough donations regimes are not immune from corruption scandals. But the donation cap will take the leverage of big money out of Victorian politics. Importantly, it will free politicians and their staffers to do the work they are supposed to do: representing constituents, policy and decision making.

The media is tough on our elected representatives, often too much so. The Age has been relentless in its revelations about cash for access in Victoria - Labor, Liberal, corporates, unions, the lot. Truth is, however, that politicians and parties on the whole hate fundraising. Driving miles through peak traffic for warm chicken and smoked salmon in a pub in Cranbourne is hardly glamorous. They may not say it, but many on both sides have longed for public funding to replace the primitive, inherently dodgy system we now have. Long overdue also is the proposal for real time disclosure of donations of more than $1000. Victoria has no disclosure rules and relies on the hopelessly inadequate federal law that requires donations higher than $13,500 to be publicly reported. Such is the paucity of the federal regime that voters can wait as long as 19 months before a donation is declared on the Australian Electoral Commission's opaque website. The Andrews' proposal for vastly improved disclosure is a relief, albeit that it should have happened a decade ago.

Yet the reform package is not complete. Unfortunately, the overhaul will be weakened by the failure to cap the amount politicians can spend on campaigning. Other jurisdictions have sensibly capped election spending to reduce the temptation to seek out donors or to make it easier for donors to buy influence. The elephant in the room for the Labor government is unions and the millions of dollars they give to the ALP every year. As reported, The Age understands the government wants to allow the administrative wing of the party to continue to collect funds from unions via party membership and affiliations.Those with deep pockets may remain be in the political game for some time yet.