"No Tasmanian wants to see their democracy being bought and corrupted by money from big commercial and private donors," Ms O'Connor said.

This follows the release of a report from the Institute for the Study of Social Change on campaign finance reform in Tasmania. The report recommended seven state-level policy actions without which Tasmania would continue to have the weakest donation laws of all Australian states.

Related: Campaign finance reform needed before next state election

"[The report] makes it really clear there is a pressing need for donation reform in Tasmania, for caps on expenditure, for close to real-time donation disclose and for public funding in limited circumstances for political parties," Ms O'Connor said.

"We need to make sure, at the next election, we have a genuine contest of ideas rather than parties being funded by shady private interests to achieve their own objectives."

Premier Will Hodgman said the institute's report was just one of many submissions which would inform the final report in the government's review of the Electoral Act.

"Appropriate process needs to be followed and all stakeholders should have the opportunity to have their submissions considered," Mr Hodgman said.

"We don't want to preempt that outcomes of that proper process or the final recommendations made to government."

Mr Hodgman said there would be further consultation with stakeholders and the community regarding making improvements to the electoral system that would deliver many of the objectives referred to in the report.

Related: Democracy requires compromise, vigilance

Franklin Labor MHA David O'Byrne said greater transparency around political donations was something Labor had been calling on for many years.

"In 2013, we moved legislation to open up transparency on political donations and the Liberal party voted against it. They do need to come clean," Mr O'Byrne said.

"The Tasmanian community needs to know who is really paying for elections."