Labor Senator Sam Dastyari quits over Chinese expenses scandal

Labor Senator Sam Dastyari has caved to ongoing pressure and resigned over his foreign expenses scandal.

The Senator fronted media for the second time in two days to confirm he had offered his resignation for allowing Chinese donors to pay bills for travel expenses on his behalf.

"I made a mistake and I'm paying the price for that mistake," he said.

"Yesterday, I called a press conference and answered questions. Today, I have reflected on that and decided that wasn't enough.

Sam Dastyari quits over expenses scandal.
Sam Dastyari quits over expenses scandal.

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"It's clear to me now that this has become a distraction. The last thing a government as bad and divided as this one deserves is a free pass."

Mr Dastyari said while he did not break any current rules, his behaviour was "wrong".

Senator Dastyari had apologised on Tuesday for requesting a Chinese donor linked to Beijing foot $1600 worth of personal travel debt, but denied it influenced his position on the territorial dispute in the South China Sea.

The senator was also under fire over claims Yuhu Group paid for legal bills, which could have breached the federal Labor code of conduct.

That code says a member should not accept payments above $3000 from one source.

Sam Dastyari.
Sam Dastyari.

The 35-year-old would not confirm if claims made in Chinese media, that said Dastyari supported China in the South China Sea, were correct. Instead, he said he may have "misspoken" or was "misquoted".

Labor leader Bill Shorten had refused to condemn Mr Dastyari's actions, instead stating the "junior senator" was a bright young man who deserved a second chance.

He issued a statement shortly after Dashyari's resignation and said the Senator was "paying a heavy price".

"It's the measure of the man that he can stand up, admit he got it wrong and accept the consequences," Mr Shorten said.

"Sam is a young bloke with a bright future ahead of him. He has a lot more to offer Labor and Australia.

"I'm confident he will continue to make a strong contribution to my team."

After calls to resign, Sam Dastyari has quit.
After calls to resign, Sam Dastyari has quit.

"The Labor party owes me nothing and I owe the Labor Party everything," Mr Dastyari said in his resignation speech on Wednesday.

"Bill Shorten and the team don't deserve this distraction.

"The ongoing attention on my behaviour is taking attention away from the bigger issues facing Australia."

Dastyari has resigned from Labor's frontbench but will continue to serve as NSW senator.