A working group has been formed to design Australia’s national corruption watchdog.

The expert panel includes a crown prosecutor who says she has seen firsthand the “failings” of state anti-corruption bodies.

Outgoing NSW deputy senior crown prosecutor Margaret Cunneen will is one of the trio of experts tasked with reviewing legislation for setting up the Commonwealth Integrity Commission.

Ms Cunneen has previously sparred with the NSW Independent Commission Against Corruption (ICAC) after it investigated allegations she perverted the course of justice by telling her son's girlfriend to fake chest pains to avoid a police breath test.

The controversial inquiry was abandoned in 2015 after the High Court ruled NSW ICAC was outside its jurisdiction.

Mal Wauchope, a former WA Public Sector Commissioner until he stepped down in March, is on the panel too.

Former Australian Federal Police commissioner from 2001 to 2009, Mick Keelty, rounds out the working group announced by Attorney-General Christian Porter on Tuesday.

“The unique experiences of these three individuals across criminal law and prosecution, public sector administration and law enforcement will assist the government to ensure that the model for the CIC is effective, appropriate and balanced,” Mr Porter said.

The new body will consist of two halves - one to investigate corruption in law enforcement, and another for the public sector.

Enforcement duties will be given to the current Australian Commission for Law Enforcement Integrity.

The public sector integrity division will investigate government departments, parliamentarians and their staff, the staff of federal judicial officers, and organisations that receive federal money.

The expert panel will work on draft laws before a proposal is put to cabinet.