Jenny West's opening statement, which included the serious allegation that her withdrawn job offer would become a "present for someone", will be referred to the NSW Independent Commission Against Corruption.
The committee investigating the appointment agreed it should be referred to ICAC, committee chair and Greens MP Cate Faehrmann told AAP.
"At this stage, it is not a formal referral by the Public Accountability Committee," she said on Tuesday.
Ms West, a former deputy secretary for Investment NSW, told the inquiry on Monday she was offered the $500,000 job in August 2021.
She was told in October by Investment NSW CEO Amy Brown she no longer had the position, which was given to Mr Barilaro in June 2022.
"Ms Brown said that the position - and this is a quote - 'will be a present for someone'," Ms West said.
Mr Barilaro, the former Nationals leader, resigned from parliament last year and was named earlier this year as the successful candidate, before withdrawing last month amid a political storm.
An ICAC spokeswoman told AAP "the commission cannot confirm or deny if it has received referrals, or whether it is considering or undertaking investigations".
Ms West told the inquiry she felt "so confused" and "shocked" when Ms Brown told her she no longer had the New York job and would also be made redundant from her position.
She said she was told the appointment was rescinded because the government decided trade commissioner roles would become ministerial appointments.
Premier Dominic Perrottet says reports coming out of the inquiry are worrying.
"There is absolutely no place for gifts of government jobs, whether they are statutory appointments or whether they are government sector appointments," he told media on Tuesday.
Mr Perrottet said a second review into the appointment, launched by the premier himself, was expected to report back within weeks.
"I will make that public and I will immediately respond to any of the recommendations," he said.
"Obviously yesterday, the reports are concerning and from my perspective, this independent review will look at that."
Trade Minister Stuart Ayres issued a statement on Monday rejecting any suggestion he exerted political influence on the recruitment process, saying Ms Brown was the decision-maker for the role.
"I did not say the job was to be a 'present' for anyone and I find that idea to be offensive," he said.
"All my actions have been to ensure the independence of the public service during this recruitment process."
Labor's upper house leader and committee member Penny Sharpe said there was "something really rotten at the core of what's happening NSW".
"The idea that these types of positions are being given out as presents to mates is something that the community hates," she told Sydney radio 2GB on Tuesday.
"It really is explosive and worrying evidence that we heard yesterday."
Ms Sharpe said Mr Ayres had "so many questions" he needed to answer.
"His role throughout this entire process has been extremely murky," she said.
Ms Brown also had questions to answer about the process in light of Ms West's evidence.
"Labor believes she should be stood down until the inquiry has finished," Ms Sharpe said.
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