The South Australian premier, Peter Malinauskas, has announced plans to ban political donations from state elections, paving the way for nation-leading electoral reforms.

Malinauskas said his bill would put South Australia on the “cusp of becoming a world leader in ending the nexus between money and political power”.

The Albanese government pledged to introduce spending and donation caps, and truth in political advertising laws, as revealed by Guardian Australia after the 2022 federal election and confirmed by a parliamentary inquiry that reported last July.

Lower house independents, including Kate Chaney, Zali Steggall, the Greens, David Pocock, Lidia Thorpe and the Jacqui Lambie Network, joined forces to introduce a bill for fair and transparent elections in March.

The opposition leader, Peter Dutton, suggested truth-in-political advertising laws would be “probably welcome” in March, raising expectations that a major party deal might be possible.

The Coalition’s members strongly opposed the government-chaired inquiry’s recommendations, saying any increase in the territories’ Senate representation would make the value of state votes more disproportionate.

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