The decision replaces the original plan to have the distribution of flyers and documents making allegations against Kel Watt investigated by a panel of three former MLAs and MPs. The investigator is yet to be appointed.

The smear campaign against Mr Watt stepped up a notch this week, after a flyer making personal allegations against the greyhound lobbyist was sent to female party members last week. Documents continuing the allegations against Mr Watt were sent to female ACT members of parliament on Tuesday, and to

Fairfax Media on Thursday, marking a new angle in the campaign to discredit him.

ACT Policing has confirmed they are assessing a complaint about the flyer.

ACT Labor secretary Matt Byrne said he welcomed the decision and would work with the investigation.

"In terms of the appointment of the investigator I welcome the role the national executive committee wish to play to get to the bottom of the circulation of this egregious material and we'll work closely with them to ensure the investigation is conducted to the highest possible standard."

The powerful national executive committee also reversed part of the decision by the ACT branch administrative committee's decision to restrict access to the party's membership lists.

Following the use of the membership list to send out the flyers, the decision was made to allow public office holders and party officials access to a database from which they could contact party members without seeing their contact details.

Now Mr Byrne will be compelled to pass details of members to public holders on request. Mr Byrne has defended the decision of the administrative committee as a bid to use members' information responsibly.

"As the country debates the merits of the My Health Record system, we as a party should remember to conduct ourselves with integrity," Mr Byrne said.

"Our branch acted quickly to protect members' information in light of clear misuse. I'm disappointed some of these protections have been unwound."

Senator David Smith, who is from an opposing faction to Mr Byrne, confirmed the decision was made by the national executive committee after a request from him.

Senator Smith said it was critical that he be able to talk to constituents and party members and to be able to contact people to do that.

Former ACT Labor minister John Hargreaves told 2CC radio the flyers were "the worst example of muckraking I have ever seen in my 30 years in the party".

"This person has to be politically executed," Mr Hargreaves said.

It was unlikely the flyer and the document were the work of just one person, the party elder said. He also said Labor party members should be vigilant against the national executive committee taking away the option for a rank and file preselection ballot.