Opposition Leader Anthony Albanese says the behaviour surrounding the latest donations scandal to haunt the NSW Labor Party is "completely unacceptable" and quite shocking.
The NSW Independent Commission Against Corruption (ICAC) revealed this week that $100,000 was illegally donated to the NSW Labor party.
"The party is in a diabolical situation," Mr Albanese told reporters in Sydney on Sunday.
"It's not the first time that Sussex Street and Head Office have behaved in a bad way."
Former deputy Labor leader Tanya Plibersek told the ABC's Insiders program that this was "completely unacceptable behaviour" and there needs to be a culture change.
Ms Plibersek does not agree with former Labor senator Sam Dastyari that political donations should be banned.
Instead, she said there is a more important discussion to have around limits on what is spent in advertising or during campaigning.
"That's where the pressure comes," she said.
"There's an arm's race to raise more money. You saw the sort of spending from Clive Palmer in the last election campaign. While you've got pressure to combat that sort of advertising spend, you'll have pressure to raise money."
While she is a strong supporter if the NSW ICAC, she and Labor wants to see a Federal ICAC with "real teeth" and donation limits reduced to $1,000 from $14,000 with a faster real time disclosure.
The government has been slow to respond to the idea for a national ICAC.
But Liberal frontbencher Anne Ruston said the federal government recently moved to ban foreign donations to political parties, while ensuring a greater need for transparency.
"I think the core thing is about transparency and about reporting, and continuing to make sure that anybody who's donating to a political party, that is clearly identified," she told Sky News.
"What we saw this week was a situation where it was tried to be kept under cover."
Australian Associated Press