Liberal Party members in Mosman have threatened to stop supporting their local MP Felicity Wilson, because she has not given them full details about where she has lived.
It comes after it was revealed — days before the April by-election — that she wrongly claimed to have lived in the electorate for a decade.
After journalists questioned the claim, Ms Wilson admitted it was wrong, saying was an "unintentional error".
"At the time of writing my nomination form, I believed it to be true that I had lived in the North Shore electorate for 10 years," Ms Wilson said in a statement at the time.
"However, upon further reflection I have since realised that figure is not accurate."
One senior Liberal told the ABC the North Shore member was now "toxic in the party".
At the Tuesday night meeting of the Mosman branch of the Liberal Party, members said they had asked Ms Wilson "on a number of occasions" to provide an amended statutory declaration and give a full account of her residential history.
About 80 people at the meeting were angry that Ms Wilson would not provide answers.
"If an employee lied on their application to get a job, they would be fired," one branch member said.
A motion was moved that at the next meeting — in the absence of answers and explanations — the branch would refuse to fundraise for Ms Wilson leading up to the March 2019 election.
The branch also reaffirmed its support for the Berejiklian Government and asked if it could fundraise in a marginal seat where the candidate "was a proven candidate of integrity".
In July, Ms Wilson also admitted she provided false information on political forms, this time overstating the number of undergraduate university degrees she had.
She said she had a double degree from Macquarie University when she applied to be vice-president of the NSW Liberal state executive in 2013.
Ms Wilson later admitted she had only one undergraduate degree — a Bachelor of Media — and a Master of Public Policy.
She has been contacted for comment.
