Damien Tudehope steps aside from NSW Liberal frontbench ahead of ICAC hearings

Damien Tudehope has stepped aside from his NSW Liberal frontbench roles ahead of public hearings in the state corruption watchdog's inquiry into alleged illegal political donations and branch stacking.

The NSW upper house opposition leader and shadow attorney-general said he was not under investigation and that there was no suggestion of wrongdoing by him. He said he offered to step aside after being called as a witness, and Opposition Leader Kellie Sloane accepted that offer.

The move comes before ICAC's Operation Rosny begins public hearings on July 27. The hearings are scheduled to run for eight weeks and will be led by Assistant Commissioner Fabian Gleeson SC.

Tudehope steps aside

Reporting from The Australian first identified the frontbench resignation on July 3, with later confirmation from The Guardian. Tudehope's decision removes him from two of the NSW Liberals' most visible parliamentary roles at a politically sensitive moment for the party.

He said stepping aside was the best way to avoid distracting from the inquiry once the public hearings begin. The reporting reviewed for this story does not suggest he is a target of the investigation.

The decision was accepted by Sloane, who is trying to manage the opposition's public message as the hearings approach.

What Operation Rosny will examine

ICAC's inquiry will test allegations of illegal political donations and branch stacking involving NSW Liberal figures.

The reporting names several people linked to the probe, including fugitive property developer Jean Nassif, hotelier Michael O'Hara, Catholic Schools NSW chief executive Dallas McInerney, former minister David Elliott and former building commissioner David Chandler.

Those allegations remain at the inquiry stage. No charges are reported in the coverage reviewed.

Why the timing matters

The resignation landed just after ICAC announced Operation Rosny and only weeks before the public hearings are due to start. That timing heightens the political sensitivity for the NSW Liberals, who face pressure over how the inquiry could affect campaign messaging and leadership discipline.

The stakes are not limited to one frontbencher. The research packet says the inquiry could deepen pressure on the party if it surfaces further evidence about donations, membership stacking or political influence.

Tudehope's move is also a signal that the opposition wants to limit avoidable distractions before the hearings begin.

What happens next

The first public hearings are scheduled to begin on July 27 and are expected to continue for eight weeks.

Further witness appearances and evidence could widen the fallout, especially if ICAC hears new allegations or adds more named figures to the public record.

For now, Tudehope says he is not under investigation. His departure from the frontbench is meant to keep the inquiry from becoming a continuing political distraction while Operation Rosny moves into public view.