Senator Sam Dastyari at yesterday’s press conference / Picture: John Fotiadis

Just 24 hours after a bumbling media conference where the Sydneysider declared he would not quit, the influential senator late yesterday fell on his sword.

Mr Dastyari said his behaviour had been “within the rules but it was wrong” and he did not want to give the government a “free pass”.

It is understood Mr Dastyari, a crucial factional player in the NSW Right, had spoken to several Labor powerbrokers who formed the view the scandal had detracted from Labor’s strong performance since the election.

Sam Dastyari has quit the front bench. Picture: Toby ZernaSource:News Corp Australia

Senator Sam Dastyari has offer Labor leader Bill Shorten his resignation, and he accepted. Picture: Toby ZernaSource:News Corp Australia

Opposition Leader Bill Shorten had strongly defended Mr Dastyari.

However Mr Shorten grew concerned the issue would not go away after the senator struggled to answer questions at Tuesday’s media conference.

The 33-year-old became embroiled in the scandal after it emerged a company run by a wealthy Chinese businessman had paid a personal $1670 bill for Mr Dastyari’s transport expenses.

“Cash for comment” accusations arose after Mr Dastyari took a “pro China” view on the South China Sea during a media conference alongside a Chinese donor before the election.

Mr Dastyari conceded the scandal had overshadowed Labor’s strong opening week in parliament.

“What I did was within the rules but it was wrong,’’ he said yesterday.

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

“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 Dastyari is expected to return to the frontbench in the future. The young senator, who declared all payments in full on his register of interests, said he accepted the consequences of his actions.

Labor Senator Sam Dastyari in the Senate last month. Picture: AAP Image/Mick TsikasSource:AAP

“From the beginning, I freely admitted that I made a mistake,” he said. “I made all the necessary disclosures and what I did was within the laws, but it was wrong. I fell short of the duty I owed to the people I’m so proud to represent. I accept that and I’m here to make it clear I accept the consequences.”

Mr Dastyari’s resignation was a win for conservative senator Cory Bernardi who led the prosecution of the case against the Sydney senator from the opening day.

Former PM John Howard made comments about Dastyari at the National Press Club in Canberra. Picture: Ray StrangeSource:News Corp Australia

Senior government figures took several days before they decided to aggressively seek Mr Dastyari’s scalp.

Conservative figures last night suggested Mr Turnbull should use Mr Bernardi more effectively as the team’s “attack dog”.

Mr Shorten last night said Mr Dastyari still had a bright future in the party.

“Sam is a young bloke with a bright future ahead of him. He has a lot more to offer Labor and Australia,’’ he said in a statement.

DASTYARI’S FULL STATEMENT

“I AM going to be making a short statement, and I won’t be taking any questions.

This has been a difficult week. And this afternoon I’ve made a difficult decision.

Today I spoke to my leader Bill Shorten and offered my resignation from the front bench, which he accepted.

From the beginning, I freely admitted that I made a mistake. I made all the necessary disclosures and what I did was within the laws, but it was wrong. I fell short of the duty I owed to the people I’m so proud to represent.

I accept that and I’m here to make 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 the ongoing examination of my behaviour is taking attention away from bigger issues facing Australia and Australians.

Senator Sam Dastyari did not take any questions but read from a statement today. Picture: John FotiadisSource:News Corp Australia

Yesterday I called a press conference and answered questions. Today, I’ve reflected on that and decided that wasn’t enough. It’s clear to me now that this has become a distraction.

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.

I want to thank my leader Bill Shorten for his incredible support. It’s not fair to him, or to the millions of people who rely on Labor for my personal issues to distract from the bigger fights that we face — for jobs, for schools, for Medicare.

I made a mistake, and I’m paying the price for that mistake. I want to thank my amazing wife Helen who is an inspiration and a role model to our two incredible daughters. And I want to thank the Labor Party for the support it was provided, from my parliamentary colleagues to the rank and file. The Labor Party owes me nothing, and I owe the Labor Party everything. I will continue to serve with pride as a senator for NSW and I look forward to serving a Labor government in the near future, in whatever capacity I can. Thank you.”

Senator Sam Dastyari at yesterday’s press conference / Picture: John FotiadisSource:News Corp Australia

SAM STILL HAS QUESTIONS HE MUST ANSWER

Simon Benson COMMENT

SHANGHAI Sam was faced with two choices. He could ride out the storm or fall on his Jian.

In the end, the decision yesterday to stand down from the Labor frontbench was entirely his. But it was a choice that was soon to be taken away from him.

While Bill Shorten was sticking to his word to stand behind him, it was Dastyari’s colleagues in the NSW Right who urged him to consider the damage that he was causing. There was no way the opposition could afford to allow this issue to be dragged into next week, when parliament returns, with the Turnbull government still a rabble.

But in taking the politically correct decision, the 33-year-old former Labor Party boss has left unanswered a long list of legitimate and serious questions about his behaviour.

Such as: Why did he need a company linked to the Chinese Communist Party to pay a $1600 bill for him?

Why did he require a Chinese property investor, also with links to the Communist Party, to pay a $40,000 legal bill for him?

And why did he, as a member of the shadow cabinet, seek to subvert Australia’s policy toward the South China Sea dispute?

Dastyari, in claiming he had done nothing wrong, has also demonstrated he has no appreciation of the deeper issue behind the “mistake” that has brought him undone.

Dastyari has opened a can of worms on the issue of China’s influence over the Australian political system.

His resignation won’t undo that.