An ultra-conservative Liberal Party faction aimed to "shake down" opposition leader Angus Taylor for a five-figure donation, a corruption probe has been told.
Former Catholic Schools NSW head Dallas McInerney sought to secure the funding from the now-federal Liberal leader, claiming the MP had agreed to make a series of payments to a party faction.
"I want to shake down Angus for 10K," Mr McInerney wrote in a message aired at a NSW Independent Commission Against Corruption inquiry on Tuesday.
The Catholic schools boss stepped aside from his professional roles earlier in July after he was named in the watchdog's corruption allegations.
The commission is investigating alleged illicit political donations and branch-stacking spearheaded by the Reformers, a conservative Christian faction among the NSW Liberals.
Former Liberal staffer Dylan Whitelaw said there was a plan to get as many Reformers elected to the state's council as possible.
The 25-year-old noted he "would assume it's Angus Taylor" who was being targeted as a donor, but quickly added he was not aware of any contributions being made.
Mr McInerney also wrote in a Whatsapp message that Mr Taylor had agreed to give the faction a one-off $15,000 injection followed by $3000 every month, the commission heard.
It is unclear if the payments were made, and there is no suggestion of any wrongdoing on Mr Taylor's part.
In a statement on Tuesday, Mr Taylor's spokesperson noted the opposition leader was not a party to the matters before the commission, adding all donations were declared in accordance with relevant rules.
"These matters should be allowed to run their course free from political interference or commentary," the statement said.
"As such, the leader will not be providing a running commentary on any matters before the commission."
Under questioning, Mr Whitelaw told the commission abortion, religious freedom, euthanasia and government-mandated vaccinations were identified by the Reformers as issues which could engage prospective recruits.
Events were organised across the state where those issues would be discussed, Mr Whitelaw said.
He agreed the purpose of the events was to bring in new members to the Liberal Party who had conservative ideals and ensure branches were populated by members of the right faction.
Much of the work Mr Whitelaw did for the Reformers was performed while he was employed by Catholic Schools NSW and advisory group Beckington, which partly received funding from the faith group, he told the inquiry.
It was a "running joke" between he and another Reformers member, Robert Assaf, how much work they did for the faction while on the "Catholic Schools' dime", Mr Whitelaw agreed with counsel assisting Juliet Curtin.
The group was allegedly driven by fugitive property developer Jean Nassif, working with former Liberal premier Dominic Perrottet's brothers Charles and Jean-Claude and lobbyists such as Christian Ellis.
The watchdog is also investigating if political donations from Nassif and his development company were taken between 2020 and 2023 in return for favourable outcomes.
"I've got my hand on the state government and you're going to see changes," he vowed to an associate in a recorded phone call played to the commission.
The three central allegations of corrupt conduct being probed by the inquiry were all linked to Nassif and driven by "the confluence of personal greed and political ambitions", counsel assisting Peggy Dwyer said in her opening address.
The developer is being pursued by NSW Police after a two-year fraud investigation and is believed to be living in Lebanon.
A warrant has been issued for his arrest, while 57 companies linked with his company Toplace are in administration.
Mr Whitelaw will continue to give evidence on Wednesday.
