Jean-Claude Perrottet - brother of former NSW premier Dominic Perrottet - helped recruit conservative-minded members to the Liberal Party to exert control over certain branches.
The NSW Independent Commission Against Corruption is investigating alleged illicit political donations and branch-stacking spearheaded by the Reformers - a conservative Christian faction among state Liberals.
The now 29-year-old Jean-Claude Perrottet was approached by Reformers co-founders Christian Ellis and Robert Assaf in 2018 and asked if he wanted to join them, the commission heard.
The ex-premier's younger brother admitted he wanted pay for his time, at one stage arguing to be paid $12,000 for several months work.
He became frustrated during a text message exchange with Mr Ellis over the money.
"You've worked the hardest with the least back thus far, but it is a lot of moolah," Mr Ellis told him.
Bank records show the younger Mr Perrottet being paid $3000 from the Reformers account, in what counsel assisting Juliet Curtin suggested was a first instalment.
Another sum of about $900 was also later paid by the Reformers.
"I was pretty frustrated with Christian, so he might have paid me," Jean-Claude Perrottet told the inquiry.
The Reformers organised events around social issues intended to attract like-minded people to the Liberal Party, including abortion, euthanasia, religious freedom and government-mandated vaccinations.
Part of the Reformers' strategy was to sign new members to specific branches over which they wanted to get control.
Earlier on Thursday, the inquiry was Mr Assaf started working for Catholic Schools NSW in September 2019, earning $135,000 a year.
Ms Curtin suggested Mr Assaf was being employed by the then organisation head Dallas McInerney, in effect to do work for the Reformers when he should have been doing the work of Catholic Schools NSW.
Ms Curtin recounted a series of messages she said show Jean-Claude Perrottet was aware of the arrangement, as was the son of senior Liberal MP Damien Tudehope.
Jean-Claude Perrottet told the inquiry James Tudehope was not a member of the Reformers, but described him as being aligned with the values of conservatism.
"My understanding is Rob (Assaf) would have got a job at Catholic Schools doing a job, and he had an interest in the faction," he said.
Ms Curtin suggested Jean-Claude Perrottet clearly knew Mr Assaf was doing factional work while employed at Catholic Schools NSW.
"I'm not saying he doesn't do factional work. I'm sure sometimes he might have done that," Mr Perrottet said.
Mr Assaf earlier told the commission he would sometimes do Reformers work during office hours, but said he always completed his Catholic Schools work first.
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