Political donations laws in NSW are set to be overhauled in response to rorting exposed at the Independent Commission Against Corruption, with Premier Mike Baird committing to a swath of reforms if the government retains power after the March 28 election.

Under the changes supported by the NSW government, political parties would be prosecuted as legal entities if they breach election funding rules and donations will be disclosed online and in real time for six months before an election.

"We are determined to clean up politics in NSW": Premier Mike Baird. Credit:Christopher Pearce

Election spending by third party campaigners such as unions and business groups is also likely to be cut in half and spending by "close associates" of parties will be counted against that party's expenditure cap.