The political veteran spent 10 years in the NSW parliament as the member for Burrinjuck before serving as the member for Hume between October 1998 to August 2013.

Mr Schultz was diagnosed with inoperable liver and oesophageal cancer in May 2013. Just two months earlier doctors told him he had prostate cancer.

As the member for Hume, his electorate covered the towns of Goulburn, Cootamundra, Cowra, Yass, Picton, Thirlmere, Yass and Young.

Often described as a "maverick" MP, publicly opposed the privatisation of Telstra when it was party policy.

In a Facebook post, Mr Schultz's son Grant said his father quietly passed away on Tuesday surrounded by family.

"Today I said goodbye to a great man, a wonderful father and loving grandfather," he said.

"He fought to the last minute. It was only when Mum, Dean and I were there he decided his time had come. He left with grace and dignity on his terms."

Prime Minister Tony Abbott said in a statement: "Albert 'Alby' Schultz was a very highly regarded and well respected Member of the House of Representatives. He will be sorely missed.

"A man of sound judgement and strong character, Alby was as much at home in the shearing shed, the local pub, and the corridors of Parliament House.

"He started out working in abattoirs and brought an earthy common sense to public life.

"On behalf of the Coalition, I extend our sympathies to his wife, Gloria, their children Dean and Grant and their five grandchildren."

The current member for Hume, Liberal MP Angus Taylor, said his predecessor was a "straight shooter" and "conviction politician".

"He really wore his beliefs on his heart and sleeve," Mr Taylor said.

"Alby Schultz will be remembered for his extraordinary service to the people of our region, his towering strength of character and his great, great love of his family and his country.

"When I spoke to Alby a few weeks ago, he was, as always, talking about helping people, particularly those without a voice. This time it was how we could help men with prostate cancer in the Riverina area. He was trying to solve problems right to the end. Despite his sickness, he would only reluctantly talk about himself."

Nationals MP Michael McCormack described Mr Schultz on Twitter as a "Liberal warrior' who was "tough" and "true to his word".

Country Liberal MP Natasha Griggs tweeted: "So sad to hear of passing of former colleague & friend Alby Schultz. A legend of a man who made no bones about being a one eyed lib!"

Mr Schultz was born in Melbourne in 1939 and worked as a meat processor before entering politics as a member of the Cootamundra Shire Council.

In 2003, Mr Schultz lost the sight of one eye after splashing himself with hydrochloric acid used to clean a swimming pool filter.

Mr Schultz described himself as a "strong advocate of mainstream values" and "fierce defender of the traditional family unit". He was among the Coalition MPs who did not attend former prime minister Kevin Rudd's apology to the Stolen Generations in 2008.

In his valedictory speech to parliament, the former Liberal politician paid tribute to his family and the "wonderful Australians who have for different reasons become very close family friends."