NSW Premier Mike Baird has been accused of allowing corruption to fester in local government by introducing "next to useless" integrity reforms.
NSW Opposition leader Luke Foley says people such as sacked Auburn councillor Salim Mehajer "will be salivating" after caps on campaign spending were left out of new laws designed to crack down on dishonest councillors.
Mr Foley also complained that the legislation "snuck" in on Budget Day on Tuesday, does not ban property developers and real estate agents from running for office.
"It's a black day for integrity," he told reporters in Sydney on Wednesday.
"My fear is this just gives a green light to property developers to spend whatever it takes to get themselves elected to council, and (to get) their allies (elected)."
The Local Government and Elections Legislation Amendment (Integrity) Bill 2016 caps donations to councillors, candidates and third-party campaigners at $2500 per year, and donations to parties at $5800 per year.
Councillors are banned from making decisions on certain planning matters in which they or relatives have an interest.
Also, candidates must disclose if they are a property developer or an associate of one.
Mr Foley said requiring disclosure was useless, and limiting political donations without capping campaign spending was "next to useless".
He cited former Newcastle mayor Jeff McCloy, who Mr Foley said spent $144,000 on his campaign to get elected, adding that there were many similar cases.
The opposition leader accused Mr Baird of breaking a promise to cap campaign spending made in parliament just three weeks ago.
"Mr Baird is creating through this legislation a climate conducive to corruption in local government through his unwillingness to cap spending," Mr Foley said.
COUNCIL CRACKDOWN LAWS
* Councillors banned from making decisions on planning matters in which they or relatives have an interest where use of land is not being altered
* Force councillors to hand over financial benefits received from a matter on which they have voted
* Make councillors come clean about whether they are property developers or associated with
* Prohibit those who have been convicted of a crime which carries a five year jail term within the past seven years from running for council
* Impose caps on donations
(Source: NSW government)
