A senior Labor staffer has told an inquiry he knew it was "unusual" an Aldi shopping bag full of cash was allegedly delivered to party headquarters by a Chinese billionaire in 2015.

Key points: ICAC is investigating whether NSW Labor received money from illegal sources

ICAC is investigating whether NSW Labor received money from illegal sources Labor's community relations director Kenrick Cheah was told to count a bag of money allegedly dropped off by a Chinese property developer

Labor's community relations director Kenrick Cheah was told to count a bag of money allegedly dropped off by a Chinese property developer He told the inquiry he did not have time to think about why there was so much cash in the bag as he was busy

The Independent Commission Against Corruption (ICAC) is investigating whether Labor party officials and members of the Chinese Friends of Labor group colluded to breach the Election Funding Act in 2015.

In Tuesday's sitting, Labor's community relations director Kenrick Cheah was quizzed about a plastic shopping bag of money Chinese billionaire Huang Xiangmo allegedly dropped to the party's Sussex Street headquarters.

The inquiry previously heard allegations that Mr Huang gave the money to former party boss Jamie Clements who then gave it to Mr Cheah to count.

Mr Cheah said he did not have time to think about why there was so much cash in the bag when he was counting it because he was very busy, but he agreed it was "unusual".

He said Labor general secretary Kaila Murnain asked him what was in the bag but he could not remember if he told her the exact amount of money it contained.

"I definitely would have said something like 'a lot of money'," he told the ICAC.

Kaila Murnain asked what was in the Aldi bag allegedly delivered to Labor headquarters. ( Facebook: NSW Labor )

Mr Cheah said he took the money home with him because there was no safe at party headquarters and the banks were closed.

He said Ms Murnain told him to be mindful of his safety as he was leaving work.

On Monday, the inquiry heard property developer Mr Huang allegedly gave $100,000 in cash to Mr Clements.

Property developers are prohibited in NSW to give political donations.

The hearing is investigating whether Mr Huang's donation was disguised in the form of 20 cash donations of $5,000 raised at a Chinese Friends of Labor dinner.

These donations were made mostly by restaurant staff and Electoral Commission investigators became suspicious as they did not think they could afford such sums.

Ms Murnain is expected to give evidence on Wednesday.