The findings, released today, will add pressure to the Andrews government to begin reform of political donation laws in Victoria.

"There can be little doubt that the lack of transparency in political donations and the lack of limitations on who can make those donations in Victoria creates ... a perception that politicians can be bought, which reduces public trust in government," Ms Glass said.

Greens MP for Melbourne, Ellen Sandell, last week said she would next month try to introduce laws banning council candidates from taking donations from property developers.

The Ombudsman's investigation into political donations was launched after a complaint - that was ultimately found to be unsubstantiated - that Casey councillor Geoff Ablett had been involved in offering favourable planning application decisions in return for donations to his state Liberal Party election campaign.

Three other councillors - Amanda Stapledon, Sam Aziz and Damien Rosario - were named in the report.

Ms Glass said while the allegations were unsubstantiated, they raised serious questions about the propriety of donations made by property developers to political campaigns.

Under the Labor Party during John Brumby's term as premier, Victoria put the brakes on the state's political donation reforms.

And under the previous Baillieu and Napthine governments, discussions about banning developer donations were also rejected by then planning minister Matthew Guy, and by Labor shadow ministers including now Attorney-General Martin Pakula.

It is in stark contrast to New South Wales, which pushed ahead with political finance reform, with stringent bans on developer donating, and strict disclosure requirements.

Former NSW attorney-general John Hatzistergos said the changes, brought in five years ago, were introduced "to end speculation about the influences of donations on major developments in NSW" that had "cast a shadow over the good work of the government and have tainted the decent public servants who run our planning system".

A High Court decision in response to a developer challenging NSW's laws confirmed last month that prohibiting political donations by property developers was constitutional, and referred to the well-evidenced corruption risk between developers and politicians.

Victoria and Tasmania are the only jurisdictions without donation disclosure rules for candidates standing for state election.

The rules are stricter in local government however - candidates in council elections must disclose within 40 days any donations of more than $500 they have received.

Ms Glass said it was "anomalous" that council candidates were required to give more details of donations that state parliament candidates.

Lord Mayor Robert Doyle - who this month announced he would seek a third term leading Melbourne Council - took hundreds of thousands of dollars in donations from developers in his 2012 campaign to win office. He has said he intends in his 2016 campaign to take donations "from anybody that the rules allow you to take a donation from".

Asked last week if she had any concerns about political donations to council candidates in next year's local government elections, Local Government Minister Natalie Hutchins said: "the system has worked okay so far - I have not heard a groundswell from residents who have concerns [about political donations]."

The Greens' Ellen Sandell said the Ombudsman report showed the government should support her move to ban political donations from property developers.

"Victoria's lax political donations laws mean that property developers can fill the coffers of the major political parties and hope their skyscrapers get approved in return," she said.

The Labor government is considering the recommendations.

Planning Minister Richard Wynne said all political parties must disclose all donations and acknowledged some community concern around political donations.

"I have never taken one cent from a developer," Mr Wynne said.