A ninth New South Wales Government MP has gone to the cross benches as a result of revelations at the Independent Commission Against Corruption (ICAC).

Member for Londonderry Bart Bassett is the latest MP to stand aside from the parliamentary Liberal Party as ICAC probes alleged illegal political donations by NSW developers.

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The move came after ICAC commissioner Megan Latham announced that new evidence had emerged to widen the inquiry's scope to examine whether Nathan Tinkler's firm Buildev tried to influence Mr Bassett.

Mr Bassett rejected the allegation but said he did not want the issue to "become a distraction" for the party or the Government.

Counsel assisting Geoffrey Watson SC told the hearing that there was direct evidence that $18,000 from Buildev was paid through a different company owned by Mr Tinkler and then through the Free Enterprise Foundation to Mr Bassett's 2011 election campaign.

The money was used on advertising.

The inquiry heard that around that time Buildev was involved in a controversial housing development at North Richmond and Mr Bassett was the Mayor of Hawkesbury Council.

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In May 2011, Mr Bassett voted for a council residential land strategy that would have benefited Buildev's project.

The project has since attracted significant community opposition, with 4,000 people signing a petition calling for road improvements before the development goes ahead.

Buildev co-founder Darren Williams was asked whether Mr Bassett was ever in a position where he could assist Buildev.

Mr Williams told the inquiry: "You could assume that."

Mr Watson replied: "It's a hard cold fact that he could vote on council in favour of a Buildev proposal, correct?"

"Yes," Mr Williams replied.

NSW MP movements Stepped aside from parliamentary party Former Resources Minister Chris Hartcher

Former Resources Minister Chris Hartcher Member for the Entrance Chris Spence

Member for the Entrance Chris Spence Member for Wyong Darren Webber

Member for Wyong Darren Webber Former Police Minister Mike Gallacher

Former Police Minister Mike Gallacher Member of the Legislative Council Marie Ficarra

Member of the Legislative Council Marie Ficarra Member for Swansea Garry Edwards

Member for Swansea Garry Edwards Member for Londonberry Bart Bassett Resigned from Parliament Former Member for Newcastle Tim Owen

Former Member for Newcastle Tim Owen Former Member for Charlestown Andrew Cornwell

Mr Williams then told the inquiry that part of Mr Bassett's funding had come from Buildev.

In a statement, Mr Bassett said: "This morning the ICAC extended its inquiry to look into whether Buildev sought to influence me in my former role as Hawkesbury Mayor."

"I reject this allegation and I look forward to my opportunity to clear my name," he said.

"In the meantime, I have decided to stand aside from the Parliamentary Liberal Party.

"I have informed the Premier of my decision and he has accepted it.

"I am not prepared to allow this to become a distraction for the Liberal Party or the Government."