The royal commission into trade union corruption has withdrawn its request for membership records from the Victorian branch of the ALP.
The commission on Wednesday issued a notice to produce to the Labor branch as part of its probe into the use of proceeds from a fund known as Industry 2020.
But it said in a statement on Thursday the notice had been withdrawn.
Opposition workplace spokesman Brendan O'Connor said the information sought had included telephone numbers, addresses, dates of birth, trade union membership and credit card details of ALP members.
"If there was ever any doubt that this is a tainted commission today - with the efforts to invade so outrageously in the lives of 9000 Victorians - that doubt would be put to an end," he told reporters in Canberra on Thursday.
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"There is a right to freedom of association in this country, a right to belong to political parties without fear of any political or governmental intrusion, and this has well and truly crossed the line."
Industry 2020 was a slush fund used by the former state secretary of the Victorian Branch of the Australian Workers' Union Cesar Melhem, who is now a Victorian upper house MP.
Counsel assisting the commission, Jeremy Stoljar, on Thursday said he was told by legal representatives for the ALP that the notice would have required the "production of a very large number of documents ... and it could be oppressive to the recipient".
However, Mr Stoljar said "consideration will be given to issuing a notice in narrower form".
