A former government adviser has been acquitted of distributing unauthorised pamphlets smearing a political opponent as a "paedophile lover", but admitted forwarding other denigrating material about him during a trial into one of NSW's dirtiest election campaigns.

Former Liberal campaign manager Jim Daniel was found not guilty on Friday of breaching electoral laws by distributing unauthorised obscene pamphlets smearing a Labor candidate in a battle for Sydney's most marginal seat, East Hills.

The Labor candidate for East Hills Cameron Murphy. Credit:Lee Besford

Election pamphlets distributed during the campaign described opposition candidate and lawyer and civil liberties campaigner Cameron Murphy as "believ[ing] in the rights of child rapists".

Liberal MP Glenn Brookes ultimately held East Hills by less than 1 per cent and expressed disgust at the material, and moved to the cross bench while allegations were investigated.