An internal Labor document has confirmed the party's New South Wales branch paid nearly $350,000 of federal MP Craig Thomson's legal costs last year.

The document says $240,000 of that figure was paid to Fairfax media after Mr Thomson withdrew a defamation case over its reports that he misused Health Services Union funds.

It says the payment was in line with its responsibilities to oversee the affairs of the party in New South Wales.

It adds that since Mr Thomson's suspension from the party, any financial assistance has ceased.

The document outlining the expenses was prepared for Labor's annual conference next month.

Veteran federal Labor Senator John Faulkner had urged the branch to make the disclosure to its members.

He will not comment on the amount provided for Mr Thomson, but says it is appropriate that the figure is now out in the open.