The NSW Liberals are avoiding discussion of the failure by Jaymes Diaz to win the seat of Greenway, but the party is set to revisit the issue of candidate selection with a review of its constitution.
The Liberals were widely anticipated to win the western Sydney seat, which was held by Labor on a margin of just 0.8 per cent.
But a disastrous campaign by Mr Diaz – who failed during a television interview to list the party's six-point plan for stopping the arrival of asylum seeker boats – saw a 3 per cent swing to the incumbent Labor MP Michelle Rowland.
Mr Diaz's determination to avoid the media after his infamous interview became the election campaign's running joke.
The state director of the NSW Liberals, Mark Neeham, would not directly comment on Mr Diaz, who was preselected largely because his family controls the Liberal branches in the seat.
But Mr Neeham said on Sunday: "The majority of our candidates were selected by the internal democratic processes."
Labor also gained a surprisingly large swing of more than 8 per cent in the western Sydney seat of Fowler, where there have been questions over the quality of the Liberal candidate, Andrew Nguyen.
The Liberals are due to review how candidates are preselected following a high-profile court battle last year over a push for the introduction of plebiscites for direct election of candidates.
Elements within the hard right faction have been pushing for the change, which would give party members in a seat the power to preselect candidates free from the influence of the Liberal state executive.
The left and centre-right factions have resisted the move, claiming it would encourage branch stacking.
It is likely Mr Diaz would still have been preselected under a direct election model because of the small number of members there and his control of the branches in the seat.
However, NSW Liberal president Chris Downy will convene an "eminent persons" panel to examine reform of the party's constitution, including the issue of candidate selection.