Federal Labor will keep Mark Latham's official portrait hanging in its caucus room at Parliament House, but add text condemning the former leader's actions since leaving federal politics.
The new caption follows a defamation loss for homophobic comments about another MP and allegations of domestic violence and inappropriate behaviour being levelled at the now New South Wales upper house member.
Labor's caucus chair, Sharon Claydon, told a meeting of party MPs on Monday that members concerned about Latham's portrait, which is included in a gallery of former leaders, had agreed on new text to be added to the photo.
"In 2017, Mark Latham was expelled from the Australian Labor Party and banned for life," it will read.
"His actions do not accord with Labor values, and fail to meet the standards we expect and demand."
Latham was the federal Labor leader from 2003 until 2005. He was expelled from the Labor party after joining the Liberal Democrats to run for NSW politics and has since been a member of Pauline Hanson's One Nation Party.
He currently sits as an independent.
The finance minister and minister for women, Katy Gallagher, said Latham was expelled from the party and banned for life in 2017.
"Action was taken back then in light of some of his behaviour, and also leaving to join another political party," she said.
"I think there is a recognition on balance that you can't erase history.
"He was a leader, and a leader for two years and sitting there on the wall is an indication of where we have been, and perhaps for all of us, somewhere we don't want to return to.
"But I think acknowledging the fact that he was expelled and that his actions don't align with modern Australian Labor Party values, or standards of behaviour is important."
Latham has faced calls to resign after he lost a defamation case regarding homophobic comments about NSW independent MP Alex Greenwich, and criticism of his decision to air confidential medical information about Greenwich in parliament.
Last week Latham also faced allegations of emotional, physical and financial abuse by a former partner in court documents. Latham's former girlfriend, Nathalie Matthews, is pursuing a private apprehended violence order against him. Leaked text messages prompted more criticism of the Legislative Council member.
Latham has strongly denied the allegations against him.
Latham posted on social media after the move was announced, likening the decision to Stalin's purges in Soviet Russia in the 1930s.