Labor attacks Michael Sukkar in Parliament over branch-stacking

Labor has used parliamentary privilege to accuse Assistant Treasurer Michael Sukkar of running a "thuggish" operation at the heart of the Liberal Party after the exposure of a branch-stacking scandal.

The accusations came as one of those implicated in the scandal, Alex Lisov, resigned from the party and as vice-president of the Young Liberals, a position that gave him a seat on the federal executive alongside Mr Morrison and other leaders.

Mr Lisov said he had lodged his resignation on Wednesday, choosing to resign after "incessant" death threats against him this week. Another of those named in the branch-stacking affair, Marcus Bastiaan, resigned from the Liberal Party on Monday.

In a vehement attack on Thursday afternoon during a parliamentary debate on the need for a new federal commission to stamp out corruption, Labor called on Prime Minister Scott Morrison to sack Mr Sukkar.

But federal ministers defended the MP and declared the Labor attack a "disgrace" for airing defamatory claims in the protection of the Parliament.

Labor shadow assistant treasurer Stephen Jones said the scandal included "rorting of taxpayer funds for political purposes" and attempts to undermine other Liberal MPs.

Assistant Treasurer and Minister for Housing Michael Sukkar during question time on Thursday. Credit: Alex Ellinghausen

"The architect of this project is none other than the Assistant Treasurer," Mr Jones said.

"There is nobody in this Parliament who is more shadier than this guy."

The Liberal scandal was revealed by The Age and The Sydney Morning Herald and the Nine Network's 60 Minutes this week, with Mr Sukkar, who represents Deakin in suburban Melbourne, involved in potential breaches of parliamentary rules over hiring staff in electorate offices at taxpayer expense to do party work.

While Mr Sukkar was not in the House of Representatives during the debate, he stood by an earlier statement that denied allegations of wrongdoing and sought an independent review of the staffing in his electorate office.

In the first parliamentary attack on Mr Sukkar after this week's reports, Mr Jones said the affair was especially scandalous because Mr Sukkar was responsible for the Australian Tax Office.

"The Member for Deakin, the Assistant Treasurer, has spent more time skulking in the shadows than assisting the Australian people in this time of economic crisis," Mr Jones said.

"More time undermining the public's trust and faith in democracy than protecting Australian jobs.

"More time spending taxpayer dollars on personal political goals than on overseeing the Australian Tax Office.

"He has abused public office for his own private purpose."

The Deputy Speaker, Nationals MP Llew O'Brien, asked Mr Jones to withdraw allegations of improper motive and asked him to think carefully about the claims he was making.

But Mr Jones concluded by escalating his attack and saying Mr Sukkar should be sacked.

"He's responsible for the Australian Tax Office but he's led Australians to believe that they can have no trust in the way he administers taxpayer funds in his own office," he said.

In an outraged response, Population Minister Alan Tudge warned Mr Jones his claims were defamatory and accused him of cowardice in not making his assertions outside parliamentary privilege.

"It is an absolute disgrace," Mr Tudge said, adding he was "disgusted" with Mr Jones for making his claims.

"I have never seen an abuse of parliamentary privilege like this in my entire 10 years in the Federal Parliament.

"He's deliberately using this process to smear a very good minister of the Morrison government."

Mr Tudge praised Mr Sukkar for developing the HomeBuilder policy to award grants of $25,000 to people to build a new home or renovate an existing one, a scheme that is expected to cost $680 million.

He also rejected Labor claims Mr Sukkar's behaviour was the same as that of Victorian Labor powerbroker Adem Somyurek, who resigned from the state ministry and the party in June after a scandal over branch-stacking.

Mr Tudge listed a series of Labor figures caught up in scandals including former NSW minister Eddie Obeid, former federal MP Craig Thomson and former Senator Sam Dastyari.

Mr Lisov said in announcing his resignation from the Liberal Party that he has "rejected all claims" against him.

"These politically motivated leaks have been debunked by those purported to be involved," he said. "The most important priority is holding the [Victorian] Labor government to account and to avoid distraction."

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