Former prime minister Tony Abbott has outlined a plan to ban unions, companies and overseas entities making donations to Australian political parties.

“We need to look long and hard at restricting donations to real people on the electoral roll,” he told Fairfax Media.

Prime Minister Malcolm Turnbull has flagged banning all corporations and unions from donating, while Labor is vowing to continue its fight to stop foreign government donations.

Meanwhile, News Corp is reporting that the Chinese firm involved in paying a $1600 bill for Labor senator Sam Dastyari also made donations to the Liberal party.

Top Education reportedly gave the Liberal Party $65,000 before then-education minister Christopher Pyne extended the streamlined visa program from universities to the private sector.

Senator Dastyari quit as manager of opposition business in the Senate and consumer affairs spokesman after sustained pressure for allowing a Chinese donor to foot the bill for a $1600 travel overspend and reportedly taking a pro-China stance on the South China Sea at odds with Labor’s position.

“I had a bill, I did not want to pay the bill myself,” he told the Nine Network outside his home in Sydney on Thursday.

Prime Minister Malcolm Malcolm Turnbull has attacked Opposition Leader Bill Shorten for not sacking Senator Dastyari over the incident.

“Bereft of a leader, he had to take the sword into his own hands and dispatch himself,” the prime minister told reporters on Thursday in the Laotian capital Vientiane, where he is attending the ASEAN summit.