Australian intelligence and police searched Senator Moselmane's home and office to investigate allegations of ties with China.
The National Security Intelligence Organization Australia (ASIO) on June 26 confirmed conducting a search operation against opposition party member Shaoquett Moselmane, a member of the New South State Legislative Council.
ASIO said it was part of a survey of Chinese influence activities in Australia.
Moselmane's pro-Beijing position has long surprised both his fellow Labor Party members and Australia.
"This is really worrying," McKay said.
Moselmane publicly praised the "steadfast" leadership of Chinese President Xi Jinping with the Covid-19 pandemic, in stark contrast to the response from the Australian government.
Local media reported that MP Moselmane hired a trained employee from the Chinese Academy of Management, a training facility for middle and senior government officials.
The move by Australia shows it is ready to resolve accusations that China exerts influence in the country and also marks an escalation of tensions in the already serious relations between the two countries.
Last year, former ASIO director Duncan Lewis accused China of "plotting" to take over Australia's political system with a "sophisticated" and systematic campaign of espionage and affecting some of the government.
ASIO also announced investigating Bo "Nick" Zhao, a Chinese spy suspect, received an offer of about $ 679,000 to become Beijing's "inner hand" in the Australian federal parliament.
Australia and China relations have become increasingly serious in recent years, since Canberra accused Beijing of trying to interfere in internal affairs.