The largest declared donations in Victorian political history have been repaid as would-be teal MPs feel the squeeze of reinstated caps.

The two leading shots at victories for so-called “teal” independents at November’s Victorian election will have to start their fundraising again.

Hawthorn candidate Shima Ibuki and Kew candidate Sophie Torney have handed back the $140,000 donations each received in May from progressive crowd-funder Climate 200 ahead of a looming electoral commission deadline.

Ibuki, the deputy mayor of Boroondara Council in Melbourne’s leafy inner-east, announced her candidacy in April. She hopes to win the seat held by former Liberal leader John Pesutto.

It’s proved a fertile area for teals federally, with the state seats of Kew and Hawthorn contained within the federal seat of Kooyong. It has been held by independent Monique Ryan since 2022.

However, both fledgling campaigns will need new funding strategies following an 11th-hour law change reinstating donation caps.

“My campaign is now starting at a huge disadvantage, compared to the major parties who will receive millions of dollars of new taxpayer funding from Victorians,” Ibuki said.

The change was prompted by a High Court ruling in April that found Victoria’s donations regulations, introduced in 2018, were constitutionally invalid.

Under that regime, major parties enjoyed a donations carve-out that allowed them to transfer uncapped funds from “nominated entities”.

The court ruling prompted the Labor state government to introduce laws in June that removed the nominated entities provision and reinstated individual donor caps. They are set at $5030 per candidate or double that amount for any “new entrants”.

Independents have flagged a second High Court challenge and Ibuki is among those pointing to a “grossly unfair” system due to the financial and administrative strength enjoyed by the chief political parties.

“Unlike the major parties, my campaign – and those of other independents – start with absolutely nothing,” she said.

The Climate 200 donations were made legally during the period between donations regimes, but it was made clear in June that amounts above the threshold would need to be repaid.

“I have returned the donation to Climate 200, and disclosed both the donation and its refund to the Victorian Electoral Commission,” Ibuki said.

Torney’s campaign confirmed on Wednesday afternoon it had done the same.

The electoral commission’s deadline to repay funds above the thresholds is Thursday.

The twin $140,000 donations are the largest on the Victorian Electoral Commission’s register, which dates back to 2018.

Torney stood in Kew at the 2022 election, winning 21 per cent of the vote. Fellow would-be teal Melissa Lowe stood in Hawthorn, winning a 20 per cent vote share.

Torney’s campaign in Kew faces an uphill battle against Liberal leader Jess Wilson, but it shared polling in April that pointed to a competitive race.

-AAP