Labor is calling for Assistant Treasurer Michael Sukkar to stand down from the Federal front bench as the Victorian Liberal Party demands answers over allegations that taxpayer-funded staff engaged in branch stacking.

Both Assistant Treasurer Michael Sukkar and veteran MP Kevin Andrews requested the Department of Finance review historical staffing arrangements after evidence revealed in an investigation by The Age, Sydney Morning Herald and 60 Minutes on Sunday night.

Marcus Bastiaan, Michael Sukkar and Kevin Andrews. Credit:Jesse Marlow, Alex Ellinghausen

The report showed Liberal operative Marcus Bastiaan organised a scheme to give taxpayer-funded jobs to recruiters in the office of Mr Andrews. The plan was endorsed by Mr Sukkar. Mr Sukkar and Mr Andrews both denied any wrongdoing.

But Opposition Leader Anthony Albanese said Mr Sukkar's position was "untenable" and said his removal as minister was a test of Prime Minister Scott Morrison's authority. A statement from Mr Morrison's office on Sunday said the allegations were an organisational matter for the Victorian branch of the party.

"If Michael Sukkar is still sitting there at 2 o'clock as a minister, then that's a failure of Scott Morrison's leadership," Mr Albanese said on ABC's Radio National.

"This is in their own words. Recorded conversations, memos that Michael Sukkar has responded to and endorsed.

"This is a test for Scott Morrison. This is the test he himself set when there were allegations into Victoria[n] [Labor] … [when] a minister [Adem Somyurek] was gone by the morning, a minister was expelled from the Labor party.

"Now, once again, a bit like aged care, he's saying it's not his responsibility, it's a matter for the organisational wing. Well someone needs to tell Scott Morrison that he's actually in charge of the Liberal Party, that this is a scandal [and] his assistant treasurer is in it up to his neck and his position is untenable."

In a statement issued on Sunday, the party's Victorian state director, Sam McQuestin, said he would request "full and detailed" responses from the Liberal figures.

"The Liberal Party takes the integrity of its membership very seriously," he said.

"The party will decide urgently on immediate actions to be taken and will determine further measures having regard to the responses received and the findings of any further investigations."

Late on Sunday night, the two politicians rejected the allegations and said they would ask the department responsible for politicians' staff to review whether funds were misused.

Mr Sukkar rejected the allegations and said he had never directed his staff to undertake party political activities. "Every member of my team has been directed to, and expected to, obey all applicable parliamentary policies and guidelines and workplace laws," he said in a statement.

"I cannot speak to the operations of other electorate offices."

Mr Andrews said "the suggestion that I would be coerced into making decisions on staffing arrangements in my electorate office by others is untrue."

"Tonight's 60 Minutes program made a number of allegations which are false," Mr Andrews said in a tweet. "As 'Father of the House' my integrity and my reputation mean everything."

Finance Minister Matthias Cormann said the Victorian Liberal Party was in the best position to assess the potential wrongdoing and "deal with it".

"When allegations are made … then in the first instance the department investigates independent of government. That's what I would expect to happen," he told ABC's Radio National.

"If there are allegations of inappropriate use of taxpayer resources then that ought to be investigated."

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