The powerful parliamentary privileges committee has released a report on the issue, without naming the MP who sparked the inquiry.
Gareth Ward, the ex-Liberal turned independent member for Kiama, was re-elected at the March election, despite being suspended from parliament after being charged.
Last month he pleaded not guilty to sexual intercourse without consent, three counts of indecent assault and one of common assault.
It's alleged Ward indecently assaulted a 17-year-old at his home on the NSW South Coast and had non-consensual sexual intercourse with a man in his 20s at his Potts Point apartment in inner Sydney.
The 42-year-old remains on bail, with a trial in a Sydney court not due to start until April 8, 2024.
Last month the parliamentary committee was asked to inquire into matters relating to the position of an MP who was suspended until a verdict on criminal charges laid against them was resolved or if they were re-elected in the meantime.
In response, the privileges committee said the lower house must recognise and respect the principle of the presumption of innocence, adding it was preferable to avoid suspension and allow the legal proceedings to run their course.
"Suspension of a member for an indefinite or lengthy period where the proceedings or actions of the house are not being obstructed by that member, while criminal proceedings are ongoing, has significant potential to undermine that important principle," it said in its report released on Wednesday.
It recommended serious consideration be given to "any negative risks to parliament, constituents, victims of any alleged crimes, and the presumption of innocence of a member" if they were suspended.
It also asked that any cases involving the possible suspension of an MP be referred to the committee in the future.
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