"There can be little doubt that the lack of transparency in political donations and the lack of limitations on who can make those donations in Victoria creates ... a perception that politicians can be bought,which reduces public trust in government,"Ms Glass said.
Greens MP for Melbourne,Ellen Sandell,last week said she would next month try to introduce laws banning council candidates from taking donations from property developers.
The Ombudsman's investigation into political donations was launched after a complaint - that was ultimately found to be unsubstantiated - that Casey councillor Geoff Ablett had been involved in offering favourable planning application decisions in return for donations to his state Liberal Party election campaign.
Three other councillors - Amanda Stapledon,Sam Aziz and Damien Rosario - were named in the report.
Ms Glass said while the allegations were unsubstantiated,they raised serious questions about the propriety of donations made by property developers to political campaigns.
Under the Labor Party during John Brumby's term as premier,Victoria put the brakes on the state's political donation reforms.