Mark Dreyfus says pork barrelling and third party probes will be a choice for the federal ICAC

It will also have the power to look into third parties suspected of being involved in wrongdoing in a move crossbenchers are welcoming as one step closer to their preferred oversight model.

Mark Dreyfus confirmed during question time on Monday, its federal ICAC model - expected to be introduced to Parliament on Wednesday - will have broad enough scope to launch probes into any third party influence it considers concerning.

Ministerial interference in government grants programs, such as those exposed by a series of damning audit reports under the former Coalition government, would also be within the watchdog's investigative scope.

It comes as crossbenchers outline their demands for the oversight body, which include it having the power to look into third parties and securing access to funding independent of government decision-making.

The Greens also cautioned the two principles were "non-negotiables" for their support across both houses.

Teal independent Zoe Daniel asked the government frontbencher whether its national anti-corruption commission would be capable of looking into pork-barrelling allegations.

"In relation to pork-barrelling, decisions about the allocation of public funds should be made of course in the public interest. The government won't be instructing the commission on what particular matters it can or cannot investigate. It will be up to the commission," Mr Dreyfus said.

"If the commission considers the administration of a particular discretionary grants program gives rise to a serious or systemic corruption issue, then the commissioner will have the ability to investigate that issue."

The Australian National Audit Office previously lifted the lid on a series of ministerial decisions relating to grants programs under the former Coalition government that went against department advice, including the so-called "sports rorts" and "car park rorts" sagas.

READ MORE:

The Australian National Audit Office previously lifted the lid on a series of ministerial decisions relating to grants programs under the former Coalition government that went against department advice, including the so-called "sports rorts" and "car park rorts" sagas.

Mr Dreyfus also allayed worries its proposed model would not be also able to scrutinise the relationships between public officials and third parties.

"In relation to third parties, the commission will have broad powers to investigate allegations of serious or systemic corruption of or by a public official," he sad.

"The commission will be able to investigate a corruption issue that could involve serious or systemic conduct by any person that could adversely affect the honesty or impartiality of a public official's conduct."

Public hearings were also necessary and would be possible under the model, Mr Dreyfus confirmed.

Independent crossbenchers, including Helen Haines, Zali Steggall and Ms Daniel, commended Mr Dreyfus' response on social media as a good step.

A group of 15 crossbenchers earlier called for the model to have independent funding and parliamentary oversight in addition to the ability to look at third parties who seek to improperly influence government decisions.

Support from the crossbench will be crucial, particularly in the Senate, if the federal government plans to turn the proposal into law without the Coalition's support.

However, "good faith" negotiations between the major parties could result in crossbencher demands being overlooked if a bipartisan deal is struck.

The Greens' integrity spokesperson David Shoebridge earlier announced the federal ICAC's ability to look into third parties and attain funding independent of the government are "non-negotiable" areas.

"We've never said that there are absolute red lines on this but these are the two issues of principle that are going to be make or break for this integrity commission," he said.

"We cannot allow a future government to strangle this integrity commission by cutting its funding.

"Now if the government is serious on a fully empowered, fully resourced integrity commission, they'll come and deal with us on this. We are very hopeful we'll get a solution."

The Greens senator added his party also expected outdated whistleblower laws will be reformed by the time the watchdog is up and running.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: