Close to 20 Nationals members have quit the party with more expected to follow after an investigation into an alt-right infiltration of the organisation.
The NSW Nationals on Friday confirmed 19 people had tendered their resignation from the party as a result of an internal inquiry into neo-Nazi and white supremacist linked members.
Another group of suspects has been given a week to explain why they should remain members or be punted.
Some of those extremists could have breached hate speech laws, according to lawyer Simon Rice.
"Under NSW legislation it's unlawful to incite hatred, violence or ridicule against a person based on their race or religion," the University of Sydney Law School professor told AAP on Friday.
Police confirmed they would investigate any crime, whether ideological, bias-related or motivated by hate but would not comment on any specific investigation.
"We continue to monitor activities and rhetoric and where necessary take action," said a spokesman in a statement.
And while the party attempted to clean up the messy scandal on Friday, former federal leader Barnaby Joyce reignited doubt over whether there was any Nazi infiltration at all before backtracking on his comments.
"Who is the Nazi? Who is it? ... Sorry for my aggression but I am cynical of this shit," he told AAP.
"I've seen Prince Harry in a Nazi uniform, I'm pretty certain he's not a Nazi."
However within two hours Mr Joyce said he'd made a call and agreed there was a problem in the party.
"These guys are crazy," he said.
Australian Associated Press