Mr Baird on Tuesday announced a range of measures the government wants in place for the March 2015 election in response to allegations of rorting of political donations laws by Liberal MPs before the 2011 poll.

Apart from harsher penalties for breaking donations laws, they introduce a new system for taxpayer funding of parties and independents.

The changes, similar to those in place at the federal level, allow parties and independents to claim back from taxpayers money they spend on election campaigns based on the number of votes they receive.

But the Greens and the Christian Democratic Party are alarmed at a provision which states if they do not get a candidate elected to the Legislative Assembly - the lower house - their entitlement is dramatically reduced.

Under the proposed system, parties with members elected to the lower house can claim back up to $4 per vote received and up to $3 per vote received in the upper house provided they have a member elected or attract more than 4 per cent of the vote.

But if a party fails to have a member elected to a lower house seat, the votes they receive do not attract any taxpayer funding, no matter how much money they have spend on a campaign.

As compensation, the amount they can potentially claim back for each vote in the upper house rises from $3 to $4.50.

But the Greens - who are likely but not guaranteed to win lower house seats - believe this will place the party at a major disadvantage, given the risk they could spend significant amounts of money and get substantially less back.

The Christian Democratic Party, which contests both lower house and upper house elections, is similarly concerned. It is unlikely to win a lower house seat and therefore would be eligible for far less taxpayer funding.

The ALP is worried about another aspect of the proposed new laws which removes direct public funding to candidates in favour of centralising payments to the political party.

Labor warns the  proposal to reimburse only parties for the spending by individual candidates means candidates could be forced to rely even more heavily on private donations if they are out of favour with head office, increasing corruption risk.

It will seek an amendment to guarantee candidates can claim up to $30,000 of their electoral spending back from taxpayers if they receive sufficient votes.

Easing the reliance of parties on private money to fund election campaigns was a key aim of the new laws, following evidence at the Independent Commission Against Corruption that hundreds of thousands of dollars in political donations were solicited before the 2011 election.

Christian Democratic Party leader Fred Nile told Fairfax Media he had the support of the Shooters and Fishers Party to potentially block the legislation if his concerns are not met.

This means the government will be unable to pass the legislation in its current form if it is opposed by the Greens and Labor as anticipated.