A controversial MP who made sensational claims against a recently selected candidate has been booted from NSW Labor leader Chris Minns' shadow cabinet after not responding to an ultimatum within 24 hours.
Bankstown MP Tania Mihailuk used parliamentary privilege to air her concerns about the integrity of Canterbury-Bankstown mayor Khal Asfour late on Tuesday night.
She linked the potential future upper house MP to disgraced former Labor minister and party powerbroker Eddie Obeid.
Mr Minns told Ms Mihailuk on Thursday she needed to reign it in.
"(I) told her that she can't stay in the shadow cabinet and continue to launch repeated political attacks without substantiated documents using parliamentary privilege," he said on Friday.
She was presented with what Mr Minns called a "fair settlement" that would allow her to stay in the shadow cabinet, if she agreed to give any information she had to substantiate her claims to the official channels rather than airing them in parliament in the future.
Mr Minns said the Bankstown MP wanted a few hours to think it over, but he did not receive an answer on Thursday afternoon.
He left a voicemail on Friday morning, shortly before announcing Ms Mihailuk had been booted from the opposition's inner circle on commercial radio.
Her sacking could not wait any longer, Mr Minns said, although Ms Mihailuk would not have had the opportunity to use parliamentary privilege until the next sitting day on October 11.
"Three weeks for a member of the shadow cabinet to make up her mind about whether she's prepared to continue to launch parliamentary privilege protected attacks on Labor Party candidates without substantiated documents, no I don't believe that's reasonable at all," he said.
Mr Minns said on Friday she did not bring any new information in the speech.
The claims she presented in the middle of the night under parliamentary privilege were more than a decade old and had already been investigated, he said.
Mr Asfour asked the Independent Commission Against Corruption to review Ms Mihailuk's "outrageous and unsubstantiated claims".
"She has used parliamentary privilege to launch a cowardly attack on me and my family and I call on her to produce evidence of any wrongdoing," he said.
Ms Mihailuk's office has been contacted for comment.
Mr Asfour was recently selected as a potential candidate for the Labor upper house ticket at the March election, one of five right-faction Labor hopefuls.
Ms Mihailuk is one of three southwest Sydney Labor MPs fighting over two seats in the lead-up to the election.
Jihad Dib's seat of Lakemba is being abolished and largely absorbed into Bankstown, leading to a three-way preselection battle for Ms Mihailuk's seat and Guy Zangari's nearby Fairfield.
Ms Mihailuk was the subject of bullying claims last month, which she dismissed as "an internal stitch-up".
"There are people who want my seat and people who want me out of politics," she told 2GB.
Upper house Labor veteran Walt Secord also stepped down last month after bullying claims.
Mr Minns would not comment on preselections on Friday but Labor's candidates are expected to be finalised following a conference next month.