State Opposition MP Julia Finn has resigned from Shadow Cabinet, amid Labor's deepening branch stacking controversy.
The Member for Granville stepped down from her shadow portfolio this afternoon.
Ms Finn was named in an internal investigation into branch stacking issues.
But a senior Labor MP this week told Parliament no recommendations against Ms Finn were made in the report.
In a statement, Ms Finn said she would be standing aside and urged Labor's tribunal to "urgently" deal with matters flagged in the party's internal reviews.
"I have asked the NSW ALP's internal tribunal to urgently consider matters raised about me in an anonymous dossier and in the Moorhead independent review," she said.
"I have asked that any steps required for this to happen be taken.
"I maintain my innocence of any wrongdoing, as was the finding of the independent review."
This week Opposition Leader Jodi McKay revealed Ms Finn had been named in an internal report on branch stacking issues she ordered earlier in the year.
But Ms McKay said there were no recommendations made against her senior MP in the report.
The report, which was handed to party bosses in March, found branch attendance records were falsified, false addresses were used on memberships and that there was evidence party officials paid for memberships for other people.
Ms McKay yesterday said she had spoken to Ms Finn and was "satisfied" with her explanation and would not be sacking her from shadow cabinet.
In a statement today, Ms McKay said Ms Finn maintained she had not breached any rules and was "entitled to have her name cleared".
"Her decision today to stand aside, and her request to have the matter fully examined by Labor's Independent Appeals Tribunal as soon as possible, gives her an opportunity to do this," Ms McKay said.
She said the tribunal would expedite hearings against seven party members whom the report found had cases to answer. Their party memberships have been suspended.
Deputy NSW Labor Leader Yasmin Catley will take on the Consumer Protection portfolio, while Jodie Harrison will assume portfolio responsibility of Carers.
The accusations against the NSW Labor Party follow damning allegations of "industrial-scale" branch stacking in the Victorian Labor Party.
