For a party that's been trying to rebuild its reputation following a decade of corruption that led to the jailing of a former minister - they're almost back where they started.

During the past nine months NSW Labor has lurched through multiple scandals, the latest involving now suspended party boss Kaila Murnain.

The dumped general secretary's political career is over following her explosive evidence at the Independent Commission Against Corruption this week, where she revealed knowing about potential illegal donations.

The party's most recent woes began in November 2018, when an ABC journalist aired claims that then-NSW Labor leader Luke Foley groped her during a parliamentary Christmas party.

Foley denied the accusations but swiftly stepped down as leader.

The former Auburn MP had hoped to stay on in the backbench but it wasn't long before fellow MPs deserted him and left him no choice but to exit state politics.

Then, just over a month later, the party's Sydney headquarters was raided by ICAC as part of an investigation into political donations linked to the now infamous Chinese Friends of Labor dinner.

It didn't take long for the coalition government to pounce alleging foreign interference at the "very core" of the ALP.

The party's then-newly minted leader Michael Daley vowed to wipe the opposition clean of corruption and ordered any potentially "tainted" donations quarantined.

But it didn't take long for Daley to also crash and burn.

His leadership imploded during a spectacularly disastrous final week of the 2019 NSW election campaign in March.

A video emerged of him telling a pub forum that Asian migrants were taking local jobs and he stumbled on key numbers behind his education policies during a live television debate.

He vowed to stay on as leader after losing the election, but then he too felt the pressure from fellow MPs and quit, to be replaced by Jodi McKay.

Murnain's fall from grace isn't a first for NSW Labor party executives.

Her predecessor, Jamie Clements, resigned in 2016 after becoming embroiled in a sexual harassment scandal.

He subsequently had his party membership suspended after being charged by the NSW Electoral Commission for disclosing protected information.

Post-election there's been a concerted push to rebuild and energise the party.

New leader McKay vowed to regain the voters' trust and faith.

But, the revelations aired in ICAC this week have made those promises nearly impossible to achieve.

Among the explosive evidence has been Murnain's admission that in 2016 she found out prohibited donor and Chinese billionaire Huang Xiangmo had made a potentially illegal donation to the party.

Determined to "clean up the mess" McKay demanded Murnain be suspended and vowed, once again, to rebuild trust in NSW Labor.

"If we get a stronger and better governance system around our party and our party emerges much stronger (from this) that's a wonderful thing," she said on Thursday.

But former Labor senator Sam Dastyari - whose connection with Huang in part led to his own political downfall - believes the only way out could be for the party to ban donations in NSW.

"Enough's enough, maybe it is time to have a serious look about a proper, full statewide ban on private donations because we've been through this rubbish enough," he told ICAC on Thursday.

McKay agrees things are fairly bleak, stating: "Right now our party is in a terrible state."

Australian Associated Press