The effectiveness of laws banning political donations from property developers and the alcohol, gambling and tobacco industries will be reviewed but Premier Mike Baird says his government "does not intend" to overturn them.
The decision to review the effectiveness of the bans is contained in the government's response to the recommendations of a parliamentary committee released three days before Christmas.
Mr Baird has been looking at how to improve election funding laws following Operation Spicer, the Independent Commission Against Corruption's inquiry into Liberal party fundraising before the 2011 election.
An expert panel commissioned by Mr Baird, chaired by businesswoman Kerry Schott, recommended in 2014 that the donor bans remain in place "for the time being" pending the outcome of a High Court challenge by former Newcastle lord mayor Jeff McCloy and the introduction of donations caps for local government elections.
The High Court later rejected Mr McCloy's argument that the bans were an impermissible restriction on the implied freedom of political communication in the constitution.
Last year the Baird government introduced laws capping political donations in council elections at $5900 to parties and $2600 to individuals – the same as state elections.
On December 22 the government agreed to a recommendation of the Joint Standing Committee on Electoral Matters, chaired by Liberal MP Jai Rowell, that the effectiveness of the bans be considered as part of a "comprehensive review" of the Election Funding, Expenditure and Disclosures Act.
"The government will consider whether the policy objectives of the prohibited donor provisions remain valid in light of these developments," its response says.
But when asked about this on Sunday, a spokesman for Mr Baird said: "NSW already has the toughest regime for political donations in the country and, under the NSW Liberals and Nationals Government, that will continue to be the case."
"The government does not intend to remove the ban in relation to prohibited donations," the spokesman said.
The Schott panel heard competing views on whether the bans remained appropriate.
Some argued that donation caps meant the bans were no longer necessary as it was unlikely state or local governments would be influenced by $5900 or $2600.
Others, however, argued that these sums were still significant enough that influence could be bought.
