Scott Morrison's office knew about the "sugar daddy" allegations surrounding former assistant minister Andrew Broad two weeks before they were published, as the fallout from the ongoing scandal threatens to derail the start to an election year for the federal government.

The Sydney Morning Herald and The Age can reveal the Prime Minister's office was also aware the text messages between Mr Broad and his Hong Kong-based Irish-date Amy Keating were the subject of potential legal proceedings, after the Nationals MP asked the Australian Federal Police to investigate the alleged blackmail.

The latest revelations raise further questions about the handling of the drama at the most senior levels of government, with staff in both camps either ignorant or hoping to contain the reputational damage to the government at the end of a torrid year.

Andrew Broad quit over sugar daddy allegations.

On Thursday it was reported Ms Keating gave Mr Broad a day to pay up to $1450 for her silence in November and that Mr Broad offered Nationals' party leader Michael McCormack his resignation five weeks before the affair became public.