Treasurer Scott Morrison says Labor's "Shanghai Sam" Dastyari must resign over his intense relationship with a Chinese donor.
"'I resign' is what he should say," Mr Morrison told Sky News on Wednesday.
"He won't say that, so Bill Shorten must order his walk to the pavilion."
The embattled Labor frontbencher emerged from a week of hiding to front the media on Tuesday, refusing to step aside over the "cash for comment" allegations.
He admitted he made a mistake asking a Chinese company linked to Beijing to pay off a personal travel debt of $1670, but denied it influenced his stance on the territorial dispute in the South China Sea.
He insisted he supported Labor's position on the issue, despite Chinese media reporting he previously took a pro-China stance.
Mr Morrison says he's troubled by the "high level of presumption", insisting Senator Dastyari would have needed to have an "intense" relationship with the donor to be able to ask him to pay off his debts.
"You would only ring someone who you knew very, very well and who you thought was going to say yes," the treasurer said.
"I assume it was the first person he called, I don't know how many others he called."
WATCH: Shorten gives 'junior' Dastyari a second chance
Labor frontbencher Andrew Leigh defended his colleague, saying he should keep his job.
"It is possible to make a mistake," he told ABC radio.
Labor has tried to deflect attention from the scandal by calling for a ban on foreign donations.
It's found some support among government members, including Trade Minister Steve Ciobo, although he cautions change is ultimately a matter for the parliament as a whole after a committee examines options.
"Perhaps there is some merit in confining donations to individuals and ruling out opportunities for corporations or unions, for example, to donate to political parties," he told ABC radio.
He said it was an exaggeration to suggest parties had become too reliant on foreign donations.
