Canberra, Dec 12 (IANS): An Australian senator on Tuesday vowed to resign following politically damaging revelations about his dealings with a Chinese businessman.

Sam Dastyari, 34, from the main opposition Labor Party, has been at the centre of several claims, a year after he first became embroiled in a donation scandal, reports the BBC.

Dastyari said his Senate presence had become a distraction, but rejected ever abusing his "parliamentary oath".

"I have been guided by my Labor values, which tell me that I should leave if my ongoing presence detracts from the pursuit of Labor's mission," he said on Tuesday.

"It is evident to me we are at that point, so I will spare the party any further distraction."

Dastyari had twice stood down from opposition leadership positions over his dealings with billionaire Huang Xiangmo.

Last year, the Senator resigned from a frontbench role after allowing Chinese companies to pay for travel and legal expenses.

He quit as deputy whip last month after a recording showed him making pro-Beijing remarks over the South China Sea dispute -- in defiance of Labor policy.

Dastyari was elected in 2013. His replacement will be chosen by Labor, the BBC reported.

Last week, Prime Minister Malcolm Turnbull announced a crackdown on foreign interference in politics.

He stressed it was not aimed at one country, but noted "disturbing reports about Chinese influence".

China later denied that it had engaged in such behaviour and urged Australia to act in a "fair and rational manner".