Angus Taylor caught up in donations row

Angus Taylor has become the second federal government frontbencher tangled up in the NSW Liberals donations controversy.

Fairfax Media on Tuesday reports Mr Taylor was a member of the NSW Liberal Party finance committee when he discussed using the controversial Free Enterprise Foundation to channel prohibited donations.

"Every discussion I ever had always worked on the assumption that donations would be disclosed and compliant," Mr Taylor said.

Mr Taylor has accused Fairfax of omitting critical facts from its report.

In a statement on Tuesday, he said Fairfax had unambiguous evidence that he expected donations would be disclosed and compliant under NSW legislation but had refused to include it in the report.

"It is not good enough that a newspaper can suggest some kind of wrongdoing, as a headline on an article in the Sydney Morning Herald today suggests, and omit the most relevant evidence."