The entire RSL New South Wales council has stood aside from their positions while an investigation into their conduct takes place.

The move follows weeks of negotiations with RSL National, and months of pressure from the League's rank and file.

RSL NSW is currently being investigated by police, the charities watchdog, and an independent audit firm, among other bodies, over several alleged financial scandals.

Among the alleged scandals is that former NSW president Don Rowe spent $475,000 on his corporate credit card over six years, including $213,000 in cash withdrawals.

When Mr Rowe stepped down in late 2014, RSL members and the public were told he was leaving because of ill health.

But it has since been revealed he resigned after being threatened with a forensic audit.

Allegations of financial misconduct at the top of the state branch began to surface in September last year.

In November, National President Rod White — a former RSL NSW councillor — stood aside so that "consultancy fees" he received from the League's aged care wing could be fully investigated.

In total, eight RSL NSW state councillors received the payments from RSL LifeCare between 2006 to 2016, whilst also serving as directors on the charity's board.

The total amount paid to LifeCare Directors in that period exceeded $2.5 million.

It has since been revealed Mr White was on the committee that authorised $1,065,593 in in-house donations be directed to LifeCare over four years.

LifeCare has said the consultancy fees were paid to the men in their capacity as consultants, and not directors.

Seven councillors have resigned in protest or stepped aside in recent months as a result of the reports.

The remaining councillors were due to face a disciplinary hearing on Tuesday over their handling of Mr Rowe's expenses, which could have seen them expelled from the League.

As a result of their decision to step aside and make way for a "caretaker" while an investigation takes place, the RSL National Board has agreed to drop those proceedings.

Allegations that councillors covered up Mr Rowe's conduct will now be rolled into that investigation, which is yet to begin.

A statement addressed to members and seen by the ABC says RSL National will work with the NSW branch in the coming days to establish a Board of Enquiry as soon as possible.

All the people named in the investigations deny any wrongdoing.