Liberal Party backbencher Ann Sudmalis, who reportedly boasted she won a polling booth because a supporter removed opposing signs, has backed away from confirming the allegation.

The Australian newspaper has reported that the Gilmore MP told the joint government partyroom she won a particular booth because a supporter had removed all the anti-government Medicare campaign material and hid it in a car boot.

When questioned about her tactics by ABC Local Radiio, Ms Sudmalis said she was just repeating what was told to her.

She said she did not know who had done it or whether it was in fact true.

"That was the story that was given to me [and] whether it's truth or not I can't verify that," she said.

"That's the sort of thing that you don't ask details for; you just say 'oh for goodness sake, I'm not sure that was a good idea'.

"Make of it what you will. It was an observation that was given to me.

"Whether it's actual (sic) or not, I don't know."

In response to Ms Sudmalis' comments, Labor candidate Fiona Phillips said the matter required further investigation.

"Labor is referring that to police and it is a serious matter so look, it needs to be thoroughly investigated and that's the process that is now going to occur," Ms Phillips said.

The ABC understands NSW ALP Secretary Kaila Murnain referred the matter to the NSW Police and the Australian Electoral Commission for investigation.

The AEC has declined the request to investigate.

"The AEC has considered the letter from the ALP and formed the view that the allegations referred to do not raise any prima facie breach of the requirements of the Commonwealth Electoral Act," spokesman Evan Ekin-Smyth said.

NSW Police refused to reveal details of the case.

In the latest election count, Ann Sudmalis is more than 1,300 votes ahead of Fiona Phillips, with around 3,000 votes still to be counted.