NSW MP Daryl Maguire is facing calls to quit Parliament altogether after admitting before a corruption inquiry that he sought payment over a property deal.

Mr Maguire resigned from the Liberal Party yesterday after the revelations at the Independent Commission Against Corruption (ICAC).

The member for Wagga Wagga apologised "unreservedly for causing distress and embarrassment" to the Liberal Party and resigned from his position to sit on the crossbench.

Earlier, acting Premier John Barilaro announced he accepted Mr Maguire's resignation and expressed his disappointed, saying he expected the "highest of standards when it comes to integrity for all members of the NSW Parliament".

Mr Maguire appeared before the corruption watchdog during an investigation into improper conduct by former Canterbury City councillors Michael Hawatt and Pierre Azzi.

Mr Maguire told ICAC he pursued Mr Hawatt on behalf of Chinese "friends" with "mega money" from the company Country Garden, who he was trying to help get established in Australia.

'His position is untenable'

Mayor of Wagga Wagga Greg Conkey said he was disappointed in Mr Maguire and called on him to resign, labelling his position as "untenable".

"I do believe he should resign from Parliament; he's admitted he sought a dividend or bribe from a Chinese developer. His position is untenable," Mr Conkey said.

Mr Conkey said he had spoken to many people, including Deputy Mayor Dallas Tout, and agreed they were "all on the same page".

"It's a really exciting time for this city, this city is kicking a lot of goals at the moment and this is a set back we didn't need," Mr Conkey said.

"Mr Maguire has been a strong advocate for Wagga Wagga over many years, the 18 or 19 years he's been a member … so it's really disheartening to hear what has happened."

Locals have expressed their anger at Mr Maguire's actions, with one resident, Kelly, telling the ABC she was "shocked" at the revelations.

"He's been called out and that's the best thing," she said.

"I think in time he should resign, not at the moment, but in time.

'Mr 1.5pc isn't good enough'

The ICAC inquiry yesterday heard a tapped phone call from May 2016 between Mr Maguire and Mr Hawatt, in which Mr Maguire said his Chinese friends wanted to invest in as many as 30 development-approved properties.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Listen Duration: 12 minutes 35 seconds 12 m Listen to the phone call between Maguire and Hawatt ( Supplied: ICAC ) Download 14.4 MB

Mr Hawatt suggested a $48 million project on Canterbury Road in Canterbury.

In the phone call, Mr Maguire asks Mr Hawatt what his margin is on the property.

Mr Hawatt replies that his margin is 1.5 per cent.

"1.5 per cent divided by two isn't very good," Mr Maguire says.

"Three per cent is a lot better, if you know what I'm talking about."

Daryl Maguire leaves ICAC after giving evidence in relation to a property deal in Sydney. ( ABC News )

When questioned by counsel assisting the commission, David Buchanan, Mr Maguire said he had no client or consultant relationship with Country Garden.

But when challenged as to why he was interested in what the margin was on the property, Mr Maguire told the hearing: "It appears I was talking about a dividend."

"Who was the intended person?" Mr Buchanan asked.

"I suspect it was me," Mr Maguire replied.

The phone call has prompted some voters to refer to Mr Maguire as "Mr 1.5 per cent isn't good enough".

And acting NSW Opposition Leader Michael Daley has called on Premier Gladys Berejiklian to sack Mr Maguire in light of his "explosive evidence" at the ICAC inquiry.

The inquiry continues.