Queensland's local government body has criticised a key recommendation by the corruption watchdog to ban developer handouts to council candidates.
The Crime and Corruption Commission on Wednesday tabled findings from an investigation into funding and disclosure allegations against candidates who ran in the Gold Coast, Moreton Bay, Ipswich and Logan council elections in 2016.
Its report highlighted the need for sweeping reforms, including banning developer donations and empowering councils to eject from meetings councillors with a conflict of interest.
However, the advice was rejected by the Local Government Association of Queensland on the basis it was biased.
"This is discriminatory and would likely lead to adverse consequences. Prohibition rarely works because it drives activity underground," LGAQ President Mark Jamieson said.
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"We believe regulation and transparency is the answer, not prohibition."
Mr Jamieson said forcing councillors to leave meetings over a conflict of interest would likely be exploited by some councillors as a political tool against their colleagues.
He instead suggested conflicts of interest arising from a gift or donation above $500 to be treated in the same way as a material personal interest, which requires councillors leave meetings where the matter is being debated.
Mr Jamieson said legislative changes to improve the transparency of local government should be equally applied to state politics, a call that was backed by Chris Mountford, the Property Council's state executive director.
Mr Mountford said trade unions, community and environmental groups should also be included in considerations to restrict donations.
"In the interest of community confidence, these rules should apply to all, not just some," he said.
