Queensland's Crime and Misconduct Commission (CMC) said yesterday it would not take any action against Moreton Bay Regional Mayor Allan Sutherland.
The Courier Mail published audio recordings of councillor Sutherland saying he would set a "trap" for his opponent during last year's council election.
It was alleged he asked a developer to make a donation to an opponent's campaign and then made an official complaint when it was not declared.
Local Government Minister David Crisafulli referred the allegations to the CMC.
However, the CMC says the claims do not amount to criminal conduct and would not trigger provisions in the Local Government Act.