The New South Wales Premier Kristina Keneally has acknowledged she failed to declare her free airline upgrades for her children during her US trip in 2008.

However, she said there was no need to apologise for the failed declaration on the upgrades offered by Qantas Airlines, stating that free upgrades for politicians was a “grey area.”

"I doubt you would find any member of Parliament who has not been upgraded at some point either personally or professionally," she told reporters on Wednesday.

In her defense, Ms. Keneally said her children received the upgrades when she was still traveling to the US as Sydney ambassador for G'Day.

“I paid for my kids to go overseas and Qantas made the decision to upgrade and I didn't declare that, she said.

Her statements came after the state opposition urged senior Labor MP Ian Macdonald to resign form his post.

Mr. Macdonald did not declare the free business class upgrades given to him and his wife from emirates Airlines in 2008.

He was the primary industry minister and authorized the horse industry to proceed with the breeding operations in the Hunter Valley during the influenza outbreak.

The Opposition has repeatedly urged Mr. Macdonald to surrender his post, but the Premier said several politicians have received upgrades one way or another and do not declare them, including herself.

"I'm asking parliament to provide some advice."