Victorian donation laws ruled unconstitutional

The ruling effectively scraps a section of the state's electoral act that introduced caps on individual donations but carved out significant exemptions for Labor and the Coalition.

The court found that the laws restricted the freedom of political communication and failed to provide a level playing field for independent candidates.

Premier Jacinta Allan's government now faces the task of redrafting the legislation to comply with the court's decision.

The move has been hailed by supporters of electoral reform as a major victory for political transparency and fairness in Australia.