Ward allegations distressing: NSW premier

The NSW premier says she's concerned and distressed by sexual assault allegations levelled against sidelined frontbencher Gareth Ward, as her government faces the prospect of sinking further into minority.

But Mr Ward insists he's done nothing wrong and is yet to be contacted by police over the allegations, which he says he learned about in media reports.

The Kiama MP on Thursday night stepped aside as families, communities and disability services minister after identifying himself as the politician under investigation for "sexual violence-related offences" dating back eight years.

Police are investigating the allegations, which reportedly took place from 2013.

Mr Ward said in a statement on Thursday evening that he would also recuse himself from the Liberal Party room and move to the crossbench.

The incident could push Gladys Berejiklian's government up to three seats in minority, depending upon the outcome of the May 22 Upper Hunter by-election.

Former Upper Hunter Nationals MP Michael Johnsen resigned in March over allegations he raped a sex worker in 2019, which he denies.

Scandal-plagued Drummoyne MP John Sidoti also remains on the crossbench.

Ms Berejiklian on Friday told reporters that Mr Ward had expressed his shock and said he knew little of the allegations levelled against him.

But she supported his decision to move to the crossbench for now.

"He was very categorical in saying police hadn't contacted him," she said.

Deputy Premier John Barilaro said it was "Groundhog Day" for the coalition, coming two months after Mr Johnsen's resignation.

Ms Berejiklian said she didn't know if the allegations levelled against Mr Ward would have a significant bearing on the Upper Hunter by-election.

"I always believe that when you put forward good policy and do the right thing by the community, you get the results you need," she told reporters on Friday morning.

"None of us will tolerate behaviour that is regarded completely unacceptable.

"I'll have more to say once all of us know the facts. The standards are pretty clear and if you breach those standards, you'll be treated accordingly."

Police Minister David Elliott told reporters on Friday he was not briefed on police operational matters and thus also knew little of the case.

But he admitted it wasn't a good look for the government.

"Not only is it concerning for the government because of our majority, but concerning for me that the community may look at members of parliament as people of disrepute ... (and) I don't believe that's the case," he said.

Police last year found Mr Ward naked late at night outside an inner Sydney apartment after he became "disoriented" at home following surgery.

In 2017, Mr Ward also said he was targeted by blackmailers after trying to arrange "a normal massage" at a hotel in New York.

He recounted at the time that he opened his hotel room door to find two men who told him they were filming, were underage and wanted money.

The allegations against Mr Ward also come as sexual harassment and bullying policies for NSW government ministers' offices face an overhaul, with a "brutal" review deeming current rules ineffective and unclear.