New South Wales Labor leader Chris Minns does not think Premier Dominic Perrottet should have to resign as leader after it was revealed he wore a Nazi uniform to his 21st birthday party.
On Thursday afternoon, Mr Perrottet held a media conference to admit that he wore a Nazi costume to his 21st birthday party in 2003.
Mr Perrottet has apologised for his "terrible mistake", but concerns were raised in recent days that his position could be untenable.
Mr Minns, who held a media conference in Tuggerah this morning, said it was a "massive mistake" but stopped short of demanding the premier's resignation.
"It was obviously a big mistake that he made at that time. I think it's important to acknowledge that he's apologised for it," Mr Minns said.
"My sense is that it was a sincere apology and heartfelt on his behalf. I don't think it will affect the election on March 25."
But he did say the incident showed the Liberal Party was "in turmoil".
The issue came to light when Transport Minister David Elliott raised it with the premier two days before his announcement.
"They seem hell-bent on destroying each other's political careers," Mr Minns said.
"If they can't get united in the run-up to an election campaign, what hope have they got of being united if they win the election next year?
"At the end of the day, it doesn't seem to me as though they're a political party that's focused on the issues affecting the people of New South Wales."
But senior New South Wales Liberal Party Minister Alister Henskens told reporters early this afternoon that the party was united behind their leader.
"Dominic Perrottet is an incredibly great leader and a very good premier," Mr Henskens said.
"Our team is united behind [the premier]. He is getting better everyday."
Prime Minister Anthony Albanese was asked about the matter at a separate press conference this morning in Townsville.
"That's a matter for him … and then for others who'll make judgements based upon the premier's explanation," Mr Albanese said.
Mr Perrottet said he was not blackmailed into making the revelation.
He said he felt confident in his position as leader of the Liberal Party and said he had been contacted by several colleagues offering their support.
Mr Perrottet met with Jewish leaders straight after he went public about his costume choice and toured the Sydney Jewish Museum.
Mark Rolfe from the University of New South Wales said the party replacing Mr Perrottet would not be ideal so close to the March state election.