A south Sydney house belonging to NSW Labor upper house MP Shaoquett Moselmane has been searched by Australian Federal Police.
The AFP confirmed on Friday search warrants were executed in Sydney as part of an ongoing investigation and that there was no threat to the community.
NSW Labor leader Jodi McKay on Friday said she'd been told authorities including ASIO officers entered Mr Moselmane's Rockdale home and have a warrant for his office.
The process to suspend his membership of NSW Labor has now begun and Mr Moselmane will no longer sit in the parliamentary caucus, she said.
Ms McKay will be briefed on the matter by law enforcement agencies later on Friday.
She said reports Mr Moselmane's office had allegedly been infiltrated by Chinese government agents as "dreadfully concerning", according to the ABC.
One of Mr Moselman's staff may also be involved, she added.
Mr Moselmane in April stood down as assistant president of the NSW upper house after praising Chinese President Xi Jinping's response to the COVID-19 pandemic.
Do you have a story tip? Email: email@example.com.