Senator Sam Dastyari has quit the Shadow Ministry but has not resigned from the party despite his actions. Picture: John Fotiadis

At a surprise press conference in Sydney today, Senator Dastyari said it was a “difficult decision”.

It comes after he pulled out of a University of Queensland speech at the last minute and as the Turnbull Government continued to call from him to resign over the affair.

Despite earlier this week being labelled “junior” by Opposition Leader Bill Shorten, Senator Dastyari holds the title of Manager of Opposition Business in the Senate.

He’s also the shadow minister for consumer affairs and a senior figure of the NSW Labor Party.

Senator Dastyari has been under pressure to step down ever since it was revealed he asked the Top Education Institute to pay for his $1,600 overspend on travel.

Fronting the media for the first time since the scandal broke yesterday, Senator Dastyari refused to explain why he had asked the Chinese Government-linked company to pick up his tab.

Prime Minister Malcolm Turnbull has accused Senator Dastyari of accepting “cash for comment” after reports in the Chinese media he said Australia should stay out of the South China Sea Debate.

“Today, I spoke to my leader, Bill Shorten, and offered my resignation from the frontbench, which he accepted,” he said.

“From the beginning, I freely admitted that I made a mistake.

“I made all the necessary disclosures and what I did was within the rules but it was wrong.

“I fell short of the duty of owe to the people I’m so proud to represent.

“I accept that, and I’m here to made it clear I accept the consequences.
“I’m not a shy person. I’ve never been afraid of the spotlight. But in the past week, it’s clear that the ongoing examination of my behaviour is taking attention away from bigger issues facing Australia and Australians.”

Senator Sam Dastyari announces his resignation from the federal opposition Labor frontbench at a press conference in Sydney. Picture: John FotiadisSource:News Corp Australia

Senator Dastyari did not take questions from reporters, instead reading a short statement.

He said he had made a mistake and was now “paying the price”.

“The Labor Party owes me nothing and I owe the Labor Party everything,” he said.

“I will continue to serve with pride as a Senator for New South Wales and I look forward to serving a Labor Party government in the fear future in whatever capacity I can.”

Senator Dastyari said he had called a press conference yesterday and answered questions, but had decided that was not enough.

“It’s clear to me now that this has become a distraction,” he said.

“The last thing a Government as bad and divided as this one deserves is a free pass.

“I refuse to be the reason they escape proper scrutiny.”

Mr Shorten said Senator Dastyari was paying a “heavy price” for his mistake.

“It’s the measure of the man that he can stand up, admit he got it wrong and accept the consequences,” he said in a statement.

“Sam is a young bloke with a bright future ahead of him.

“He has a lot more to offer Labor and Australia.”

Earlier this week Mr Shorten said Senator Dastyari had made it clear he had “learned his lesson” after he was caught passing on $1670 in travel expenses to a Chinese firm and saying that Australia should respect China’s decision.

Labor Senator Sam Dastyari and Opposition Leader Bill Shorten ride "The Bill Bus" as part of the 2016 election campaign in The Tasmanian town of Burnie. Picture: AAP / Mick TsikasSource:AAP

Senator Dastyari has previously labelled accusations he was “for sale” as “disgraceful” and “offensive” and implied the reports were wrong.

In his first press conference since the scandal became public, Senator Dastyari failed to explain why he actually asked donor Top Education to pay for his $1670 travel debt in the first place, which he described as an “office overspend”.

The Labor powerbroker also denied the Turnbull Government’s suggestion he received “cash for comment” from a company with links to the Chinese Government.

“I should have paid it myself,” he said. “I didn’t.

“I regret that and I’m not here to kind of justify or make excuses for it.

“I’m here to say I was in the wrong, I should have paid it myself.”

The Senator repeatedly apologised for his error, saying he had made a mistake.

“Look, I’ve made a mistake, I accept that I’ve made a mistake and my job now is to work harder, double my efforts and demonstrate to my colleagues and the Australian public that I deserve to have the role that I have,” he said.

“I did the wrong thing and there are huge lessons here for me.”

Senator Dastyari said yesterday that the company who paid his $1,600 debt had never asked him for anything in return and he supported Labor’s position on the South China Sea.