Prime Minister Tony Abbott says an email using his image and linking national security laws with Liberal Party fundraising was in "poor taste" and should never have gone ahead.
The Victorian Liberals sent out the terrorism-themed email on Wednesday seeking donations from supporters, but did not inform the prime minister's office it was being done.
"It shouldn't have been done, it was wrong, it was in poor taste," Mr Abbott told parliament on Thursday, adding that he had instructed the party never to repeat the error.
Liberal Party leaders mirrored the prime minister's sentiments, saying the email was silly and inappropriate.
The email had a fundraising theme of supporting a "safer Australia" and featured Mr Abbott saying Labor and the left were playing politics with national security, weakening borders and were a soft touch on home grown terrorism.
"With a federal election due next year, donations are critical to allow the Abbott government to continue on with the job of keeping Australia safe," the Victorian Liberals email said.
Victorian Opposition Leader Matthew Guy said on Thursday he would have stopped the email had he known about it.
"(It was) a very silly thing to do. I just thought it was completely inappropriate," Mr Guy told reporters.
"If we'd been asked beforehand, it wouldn't have gone out."
The state division has retracted the email, saying a link should not have been made between the citizenship legislation and a request for donations.
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