On Saturday, Treasurer Dominic Perrottet said the government would move a motion in the upper house when Parliament resumes in August to have Mr Moselmane suspended from the chamber.

“We are seeking the support of the NSW Labor Party to suspend Mr Moselmane [from Parliament] until such time as this investigation has been completed,” Mr Perrottet said on Saturday.

Ms McKay said she had been briefed by ASIO and federal police about the investigation and had sought the advice of her senior shadow cabinet members about suspending Mr Moselmane from Parliament.

She had also spoken to the clerk of the Legislative Council.

“Do not underestimate the significance of this issue or how much weight I give this issue,” she said.

“Mr Moselmane has been advised that Labor will seek to suspend him from Parliament when parliament resumes in early August.

“We will actually seek his support to do that but if he challenges that, if he refuses to support that, then we will seek the support of the government and the cross bench to ensure he is suspended from the Legislative Council.”

Ms McKay discussed Mr Moselmane’s political future with about seven senior Labor frontbenchers on Sunday morning after the Herald revealed some were eager to see the MP quit Parliament.

One senior shadow frontbencher, speaking on the condition of anonymity, said Mr Moselmane had “devastated and shocked” the party, and he no longer had a place in Parliament or the party.

Another Labor source said Mr Moselmane was being encouraged to “consider his future”. Mr Moselmane has been contacted for comment.

A spokesperson for Mr Perrottet said: “Given the opposition has been so slow to move, and is only saying it will do so after the Government forced the opposition leader’s hand, we can’t trust it to act on this important matter. The Government will continue to advance our plans to suspend the Labor MP at the heart of the ASIO espionage probe.”

As well as his party membership being suspended, Mr Moselmane will no longer sit in the Labor caucus and has been removed from all upper house committees.

The decision to suspend Mr Moselmane is likely to cause some division in the party, with some MPs believing Mr Moselmane deserves the presumption of innocence before any further action is taken.

Ms McKay said it was important to remember no charges had been laid against Mr Moselmane.

Since 2018, Mr Moselmane and his part-time staffer John Zhang have attracted media and political scrutiny over their support for Chinese government positions and criticisms of Australian government policy.

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