The Sydney home of NSW Labor MP Shaoquett Moselmane has been searched by federal police and ASIO over claims of foreign interference, believed to be from China.
The AFP confirmed search warrants were executed in Sydney on Friday as part of an ongoing investigation and that there was no threat to the community.
Prime Minister Scott Morrison said Australia would "stand up" to any attempted at foreign interference.
"The threats in this area are real, the need to take action is necessary," Mr Morrison said. "We won't cop anyone coming and seeking to interfere in our political system."
Mr Moselmane's pro-Beijing positions has long raised eyebrows even among colleagues in the Labor Party.
NSW Labor leader Jodi McKay said she'd been told police and ASIO members entered Mr Moselmane's Rockdale home and had a warrant for his parliamentary office.
Asked if the searches related to suspicions of Chinese government filtration, Ms McKay said: "No, this came as a surprise to me."
Ms McKay will be briefed by law enforcement agencies later on Friday and told reporters one of Mr Moselmane's staff may also be involved.
"It's dreadfully concerning, it's terrible," Ms McKay said.
"There's an expectation on MPs that, whatever they do, it's in the best interests of the people of the state.
"I'd hope every single MP in the parliament - not just on the Labor side but the Liberal and National Party side and crossbench - has that at the heart of their actions.
"I'm very restricted in what I can and can't say."
Mr Moselmane's membership of NSW Labor will be suspended and he will no longer sit in the Labor parliamentary caucus, she added.
Mr Moselmane in April stood down as assistant president of the NSW upper house after praising Chinese President Xi Jinping's response to the COVID-19 pandemic, saying Mr Xi had demonstrated "unswerving leadership" and decisiveness.
He also reportedly warned that the "obsolete scum of white Australia" was resurgent in spreading Sinophobia in an opinion piece he wrote for the East China Normal University.
He has been a member of the NSW upper house since December 2009 and between 1995 and 2009 served four stints as Rockdale City Council mayor.
