Chief Minister Andrew Barr on Thursday afternoon said the picture was not acceptable and he was disappointed in their behaviour.

The photo featuring ACT Young Labor right faction members - including about seven people who work in the ACT Legislative Assembly - was taken after the Australian Young Labor Conference held in Canberra at the weekend.

Local Young Labor member Annika Rees, pictured holding the bag, has apologised for her part in the photo and posting it on Instagram.

Ms Rees works part time in local MLA Tara Cheyne's office. While she did not respond directly to questions, Ms Cheyne's office said: "Tara has spoken with Annika about the photo and Annika has expressed her remorse".

The picture appears to be making light of the NSW Independent Commission Against Corruption hearings, which have heard about a $100,000 cash donation to Labor handed over in an Aldi shopping bag.

The photo was posted on Ms Rees' Instagram account and later deleted, but not before it had been circulated widely among Labor circles.

The photo featured ACT Young Labor right members prominently, including a number of members who work for, or have worked for, sitting MLAs.

ACT Labor secretary Matt Byrne said the members had shown poor judgment and poor leadership.

"It's symptomatic of the cultural problems that some parts of the Labor party has and that the poor culture in NSW is affecting other parts of the country," he said.

"It's a shame that young members in the ACT have sought to play it down. Corruption is a very serious problem."

He said ACT Labor prided itself on having integrity, citing its strong regulations of donations.

"I think members are disappointed people are making light of what is a very serious problem in the NSW branch," Mr Byrne said.

During question time on Thursday, Mr Barr said the photo did not need to be investigated.

"I am disappointed in what I have seen," he said.

"I know I speak on behalf of all my colleagues in expressing my disappointment.

"I think those young people, if they had their time again would not have posed for a photograph in that way.

"It's not something that needs to be investigated I think we know that a silly thing was done and put online.

"The business of doing silly things and putting them on the internet is not just restricted to people in Young Labor."

Mr Byrne said it was even more disappointing Australian Young Labor elected ACT member Nick Douros - who was also pictured in the photo - as national secretary.

Mr Douros was the former president of ACT Young Labor but suspended after bullying allegations were upheld by an internal investigation.

Mr Byrne called on the leaders in the party who the members looked up to to discourage the behaviour.

ACT Young Labor's poor culture came under the spotlight during ACT Labor's annual conference earlier this year.