Darwin-based Luke Gosling, who holds the federal seat of Solomon, is facing an additional charge of allegedly breaching his bail conditions.
He was released on bail after being charged in July with the assault of Northern Territory Administrator David Connolly.
Police allege the 54-year-old breached his bail conditions on August 14.
Gosling was charged on Tuesday with one count of breach of bail and is due to appear in Darwin Local Court on September 30.
Opposition Leader Angus Taylor said the prime minister faced an even "stronger test" of his leadership since charges were first laid.
"(Albanese) must act. It's completely unacceptable for a second charge to be placed on on Luke Gosling, he should be stood down," Â he told ABC News Breakfast on Wednesday.
"Presumption of innocence is important in our system, but he should be stood down whilst these proceedings continue."
Gosling is the government's special envoy for defence, veterans affairs and northern Australia, and has vowed to fight the charges in court.
The incident is alleged to have occurred at the NT Thailand Grand Festival in Darwin on July 18, with Gosling posting photos from the event on social media that day.
Cabinet minister Tim Ayres said nothing had changed, and the Darwin-based MP still had an "important" job to do.
"The matter is before the courts ... the legal process is going to have to take its course here," he told ABC radio.
NT Chief Minister Lia Finocchiaro said the matter was for Mr Albanese to deal with.
"Ultimately, if all of these allegations are true, it clearly doesn't meet the expectation of our community," she told ABC radio.
"There's an expectation of behaviour of elected members of parliament, no matter what level you sit atm," she said
Gosling's lawyer, Marty Aust SC, has previously criticised police for arresting the politician at his home instead of issuing him a summons or notice to appear.
As part of his bail conditions, Gosling is banned from going within 50 metres of the NT's Government House building and must give the administrator's office 48 hours' notice before attending any event where the two men would be present.
If they are at an event together, the Labor politician must not be within 15 metres of Mr Connolly.
