The Grattan Institute wants the federal government to re-write its electoral funding laws, which impose funding caps on candidates and parties, before they take effect next year.
As of next year, parties will max out their annual spending at $90 million, with individual candidates allowed $800,000 per electorate.
Grattan chief of staff Kate Griffiths believes those bars are set too high, and should be wound back to $40 million per party overall.
"These expenditure caps leave too much money in politics," she told AAP, "and they advantage incumbents over new entrants".
The incoming caps, according to Ms Griffiths, produce an over-reliance on big donors and an unhealthy focus on fundraising for all candidates.
However, caps that are too low favour incumbents, as new candidates aren't able to spend up on advertising that could introduce them to the electorate.
Finding the sweet spot to "right-size" caps is a balancing act, given independents can also struggle against the cumulative effect of major parties running multiple candidates.
Nine of the 11 successful independent candidates in the teal wave election of 2022 spent more than $1 million each.
Four - Allegra Spender, Monique Ryan, Nicolette Boele and David Pocock - spent more than $2 million.
Grattan's suggestion is allowing new candidates to spend $1.2 million on campaigns, 50 per cent more than incumbents or major party candidates.
"Allowing a new entrant loading gives them a little bit more wriggle room to introduce themselves, let everyone know they're in the race ... and get their message out there," Ms Griffiths.
Other changes proposed by Grattan include winding back public funding, capping third party funders at $5 million, down from $11.25 million, and tightening rules around government advertising campaigns.
The government's electoral reforms were agreed in February 2025, just prior to the last federal election, and amount to the biggest changes in four decades.
Tweaks include a $5000 disclosure threshold for donations, and a $50,000 cap for each individual donor, as well as a bump in public funding with candidates crossing a four per cent threshold given $5 per vote received.
The Greens and independents cried foul at the changes, which they say entrenches advantages to major parties.
Two teals - Zali Steggall and Ms Spencer - formed the Community Strong party partially in response to the reforms, as parties can spend more than individuals.
The changes have also sparked a legal challenge on constitutional grounds from former MP Zoe Daniel and ex-senator Rex Patrick, which is likely to be heard by the High Court early next year.
Should that case succeed, Ms Griffiths said Grattan's plan would be available to pick up and implement.
"If suddenly parliament needs to act quickly to resolve those issues, that's a short-term pathway to reform," she said.
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