Federal Opposition Leader Tony Abbott says the NSW corruption watchdog has exposed the rottenness at the heart of Labor.
He's also called on Prime Minister Kevin Rudd to "come clean" about all the dealings he or his MPs have had with former Labor powerbroker Eddie Obeid and former state mining minister Ian Macdonald.
The two former MPs have been found to have acted corruptly and have been referred by the Independent Commission Against Corruption (ICAC) for possible criminal prosecution.
"Today is a black day in the history of the Labor party," Mr Abbott told reporters in Sydney.
Mr Abbott said the federal Labor party was dominated by the NSW machine.
"The ICAC has exposed the rottenness at the heart of the NSW Labor Party and the rottenness at the heart of the Labor party nationally," Mr Abbott said.
The prime minister could not wash his hands of the situation, he added.
"Mr Rudd needs come clean about all the dealings the senior members of his government have had with Mr Obeid and Mr Macdonald," Mr Abbott said.
"We know that (Foreign Minister) Bob Carr, as premier of NSW, defended Mr Obeid at every possible opportunity.
"We know that (Immigration Minister) Tony Burke stayed at Mr Obeid's ski lodge ... we know that (Deputy Prime Minister) Anthony Albanese defended Mr Macdonald's preselection when this was under threat."
Mr Abbott said Mr Rudd was only prime minister because of the NSW Labor Party.
"If he ever seriously tackles the rottenness at the heart of the NSW Labor Party he will be dealt with by the warlords of Sussex Street again, as he was back in June 2010," he said, referring to when Julia Gillard seized the leadership.
Mr Abbott used the opportunity to launch the coalition's policy to clean up unions and other registered organisations.
The legislation, to be introduced by a coalition government in the first week of a new parliament, would ensure dodgy union officials face the same penalties and sanctions as dodgy company officials.
"(It will create) clean unions and clean registered organisations that don't betray their members and let down the low-paid workers of our country," Mr Abbott said.
He called on Mr Rudd to offer bipartisan support.
Mr Abbott said Mr Rudd had been under the influence of the NSW Labor machine.
"The NSW disease has well and truly come to Canberra. It's calling the shots in Canberra," he added.
"We all know this is a giant network of intrigue and influence. We all know that it operates on the basis of special deals and special favours for special mates.
"Mr Rudd needs to personally grill his ministers and get to the bottom of their links with the Obeid, Macdonald machine."
Liberal Senator Eric Abetz said the tentacles of NSW Labor had infiltrated the administration of federal Labor and beyond.
"There is no doubt there is an epidemic of corruption: be it with the CFMEU, be it with the AWU, be it with the HSU," he added.
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