A push to ban Labor MPs, officials and Young Labor members from accepting subsidised trips from the Israel lobby has provoked a backlash in the party, with one group branding it "totalitarian".

Fairfax Media revealed on Tuesday that a motion on next month's NSW conference agenda proposes the ban while Benjamin Netanyahu's government "continues settlements, refuses a Palestinian state [and] brutally mistreats Arab residents of the West Bank".

The proposed ban on subsidised trips was an "outrageous infringement", said Greg Holland.

"To do so in the circumstances is an insult to the Australian community who support our party," the motion, put forward by the group Labor Friends of Palestine, says.