Senator Dastyari declared the wine and its value, $700 per bottle, but didn't list its name, and then donated the bottles to charity.
The government says he should be stood aside for this and revelations that a Chinese-linked company in Sydney repayed a travel debt to the Commonwealth on the senator's behalf.
Attorney-General George Brandis has told Sky News Senator Dastyari has been compromised by a foreign government.
"These payments are intrinisically suspicious. They are not political donations. These were personal gifts of cash to Senator Dastyari. It's no different than if he had been given a bundle of bank notes and put them into his pocket raises suspicion."
Although Senator Dastyari's actions have broken no laws, he says he regrets accepting the repayment and has donated the equivalent to charity.
READ MORE
由华人捐款人支付债务和报销超支差旅费 工党议员邓森遭批
