The Government says it has its own plan to fix up local body election rules, after it rejected a Labour Party bill on the matter on Wednesday.
Police decided not to prosecute ACT MP John Banks over allegations he wrongly listed donations on his electoral return for the Auckland mayoral campaign as anonymous when he solicited the money himself.
The law for local body elections has been criticised for being too loose and the prime minister has said it needs to be tightened.
But in the House on Wednesday National members objected to Labour's attempt to introduce a bill which would align local body and general election law.
Local Government Minister David Carter says the Government is working on the loopholes.
"Particularly with regards to anonymous donations. Labour had nine years to fix this up, they actually passed the bill that's in place now, it's our job to tidy it up not theirs."