Acting premier John Barilaro has demanded the resignation of disgraced MP Daryl Maguire after Labor threatened to use rare parliamentary powers to try to expel him from NSW Parliament.

In the government's strongest comments yet, Mr Barilaro said on Wednesday: "It's clear the people of Wagga Wagga want Daryl to resign and I again reaffirm that. Daryl should resign."

Mr Barilaro's stance came after acting Opposition leader Michael Daley said Labor would take the extraordinary steps of bringing on a vote to expel Mr Maguire if he does not resign before Parliament returns in August.

Daryl Maguire leaves the ICAC last week. Credit:Janie Barrett

The standing order 254 - which has only ever been used successfully three times and not since 1917 - gives the Legislative Assembly the power to vote to expel an MP who has been judged "guilty of conduct unworthy of a member of Parliament".