Australians will become even more cynical about politics if the government does not support stricter rules for donations, Labor leader Bill Shorten has told parliament.
Mr Shorten on Monday introduced a private bill that he argues is the first step towards rebuilding confidence in the system.
The proposed legislation requires politicians to disclose donations worth $1000 or more, down from the present index-linked $13,200.
It also bans foreign donations, restricts anonymous donations to $50 and increases penalties for abuses of the regime.
In addition, it would prevent donations being split and hidden between different branches of political parties and associated entities.
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"This legislation is a chance to go beyond talk," Mr Shorten told the lower house.
"If the government stands in the way and blocks this reform, they'll give every single Australian another reason to be cynical about politics."
While Labor supports the Turnbull government's efforts on politician work expenses and scrapping the Gold Pass for retired MPs, he believes the donation system is ripe for reform.
Mr Shorten said the proposed chances will increase transparency and accountability so Australians can have more confidence.
"What turns Australians off politics is the perception that politicians are purely in it for themselves and their own interests.
"We need to lift our game."
The government's pursuit of changes to politicians' entitlements - introduced to parliament last week - came after another travel scandal over the summer holiday period, which resulted in Sussan Ley stepping down as health minister.
Cabinet minister Christopher Pyne claimed the bill would still allow the Labor party to receive money from Chinese businesses who've previously donated.
"So what they've introduced here is a smokescreen," he told parliament.
