Federal Labor Leader Anthony Albanese has taken aim at officials in the New South Wales branch of his party, saying their conduct has put Labor in a "diabolical" situation.

Key points: The NSW branch has been rocked by claims an alleged $100,000 illegal donation was kept quiet

The NSW branch has been rocked by claims an alleged $100,000 illegal donation was kept quiet Mr Albanese said structures should be put in place to ensure it could not occur again

Mr Albanese said structures should be put in place to ensure it could not occur again Former deputy Labor leader Tanya Plibersek wants political donation rules to be changed

The state branch has been rocked by revelations at the Independent Commission Against Corruption (ICAC) about an alleged $100,000 donation to the party from Chinese billionaire property developer Huang Xiangmo.

In NSW, it is illegal for a property developer to make donations to political parties.

NSW Labor's general secretary Kaila Murnain told the inquiry she knew of the donation, allegedly delivered to the party's Sussex Street offices in a plastic shopping bag, but was advised by the party's lawyers to keep quiet.

She has since been suspended from her role.

Mr Albanese, who represents the Sydney electorate of Grayndler, said the latest allegations of misconduct within the party should be the catalyst for cultural change within the Labor Party.

"This behaviour is completely unacceptable to me, and I find it quite shocking the revelations that have been made before the ICAC this week," he said

"The party is in a diabolical situation."

Mr Albanese said he had no knowledge of the situation until it was revealed in the media, and argued he was not alone.

"The average ALP member ... knew nothing about this," he said.

"Why is it that we have structures in place, including an administrative committee and other people in the party, who also weren't aware of this?

"What clearly needs to be examined is, quite frankly, a review of how this occurred and structures put in place to make sure it can never occur again."

But any such review would not come until the ICAC hearings are finished.

"We'll wait and see what comes out," Mr Albanese said.

"The ICAC doesn't hold a five week hearing because they think everything is going to come out in the first week.

"But I am committed to a comprehensive review of the structures of the New South Wales branch so that this can never occur again."

Demands for federal integrity commission to be fast-tracked

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 1 minute 7 seconds 1 m 7 s Labor frontbencher says NSW ICAC allegations highlight need for federal commission

The allegations aired in the ICAC hearings have prompted the Labor Party to renew calls for the creation of a national integrity commission as a matter of urgency.

Former deputy Labor leader Tanya Plibersek told the ABC's Insiders program there needed to be a "culture change in head office".

"But we also need to look at the broader case, what else needs to change in our political system," she said.

"I've always been a very strong supporter of a New South Wales ICAC and a federal ICAC with real teeth, because people need to have faith in our democracy that money isn't influencing the outcomes in our democracy."

Ms Plibersek said a way to improve transparency in the political system was to change political donation rules, dropping the threshold for disclosures from $14,000 to $1,000.