LABOR candidate Kate Washington is calling on Port Stephens MP Craig Baumann to resign following his recent revelations on the ICAC stand.
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Ms Washington said the MP owes it to the people of Port Stephens to not sit on the crossbench, but resign from his position completely.
Mr Baumann appeared on the witness stand of the Independent Commission Against Corruption on Friday, September 12.
He revealed he had received funding from two developers for his 2007 election campaign and used a sham invoice to hide the source of the money, despite it not being illegal for developers to donate at the time.
He also acknowledged a $100,000 donation from his accountant, Vincent Heufel, to his most recent election campaign, was made in lieu of a payment for the house Mr Baumann's company Valley Homes was building for Mr Heufel.
"The honour of representing Port Stephens in State Parliament is a privilege, not a right," Ms Washington said.
"By his own actions, Craig Baumann has lost that privilege and should do the right thing by the people of Port Stephens, and resign."
She said the revelations about Mr Baumann were "disturbing" but his response was "more disturbing".
She will run for Labor in the 2015 state election.