The High Court quashed Victoria's Electoral Act in mid-April after it found donation exemptions created for nominated entities illegally contravened the Australian constitution's implied freedom of political communication.
Under replacement legislation introduced to parliament, political donations would be capped at $7500 over four years - up from $5000.
The limit would be $15,000 for new candidates and parties.
Premier Jacinta Allan said the "new entrant" provision addressed the High Court's ruling and would establish a "more level playing field".
There will no longer be a carve-out for nominated entities of Labor, Liberal and Nationals parties in the updated legislation.
Each will be required to return money transferred to their nominated entities between July 1, 2023 and April 14, 2026 above the general cap of $5030 that remained in their state campaign accounts on April 15, 2026.
Donations after the High Court's decision will also have to be returned if outside the proposed cap.
It means teal independent candidates for Kew and Hawthorn, Sophie Torney and Shima Ibuki, will likely have to repay some of the $40,000 donations they each received from Climate 200, co-founded by Simon Holmes a Court.
Other changes include restoring a ban on foreign donations, outlawing anonymous donations above $1250, mandating real-time disclosure of donations above $1250 and re-establishing public funding.
"These changes make sure that elections are determined by voters - not big money, not billionaires, voters," Ms Allan told reporters on Wednesday.
The Labor state government and coalition were not able to reach an agreement on the legislation.
An earlier government proposal put the cap at $10,000 but it was "refined" to $7500 after talks with the crossbench.
Ms Allan said the legislation would be subject to an independent statutory review after the state election in November.
Shadow attorney-general James Newbury accused the government of trying to "rig the system".
"The coalition is considering its legal position because we believe it's unconstitutional," he said.
"We will not let these laws stand if we are elected and we are committing to reform them."
The coalition's constitutionality concerns rested on "low" caps combined with "massive" increases in public funding and back payments from nominated entities, he said.
In negotiations, Mr Newbury said he questioned why the start date for back payments from nominated entities was mid-2023 rather than when the laws came into effect in 2018.
"The answer given to us was that the last payment from Labor's nominated entity occurred in April 2023," he said.
Mr Newbury said he expected the laws to end up back before the High Court within months.
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