You might have heard a bit of debate going on about Parakeelia, but you can be forgiven for being a little confused about what it means.

We've cut through the pollie speak to explain why this story is leading the news agenda.

Key points: Liberal MPs pay money to a Liberal Party-owned company Parakeelia for voter-tracking software

Liberal MPs pay money to a Liberal Party-owned company Parakeelia for voter-tracking software Parakeelia has paid more than $1 million to the Liberal Party

Parakeelia has paid more than $1 million to the Liberal Party The Labor Party wants a full investigation into the payments

What is Parakeelia?

The Liberal Party owns software firm Parakeelia. The firm designed a program, called Feedback, to log and store information on constituents.

Liberal MPs are said to have paid $2,500 from their electoral allowance, funded by the taxpayer, to buy access to the program.

Why has this made the news?

It turns out the company has pumped upwards of $1 million into Liberal Party coffers over recent years.

Last financial year it was the party's second largest financial contributor, handing over $500,000.

Labor says this means taxpayer money has been "recycled" into the coffers of the Liberal Party.

Who else does it?

The thing is, the Labor Party uses a similar program called Campaign Central to collect and store information on voters.

However, Opposition Leader Bill Shorten has said the party had no financial interest in Magenta Linas, the company it uses for its own voter-tracking software.

"The Labor Party has no ownership structures at all of Magenta Linas," Mr Shorten said.

How much do we know about Magenta Linas?

ABC political reporter Dan Conifer has done some digging on the company.

He found about a dozen disclosures on the AEC website and reports that in all but one, the ALP (usually national branch but sometimes Queensland or Victoria) reported owing debts to Magenta Linas.

There was one disclosure where Magenta Linas paid the ALP money ($1,018 "other receipt" in 2014/15).

In the same year, however, it reported a debt to the company of $13,301.

Is it allowed?

This is where it gets a bit confusing. Political parties receive donations from a number of sources, including businesses, lobby groups and individuals.

Attorney-General George Brandis said the company obeyed the law and the Liberal Party and Parakeelia were compliant with all of their legal obligations.

Meanwhile, Opposition Leader Bill Shorten called for an urgent investigation into the flow of money from the company.

Prime Minister Malcolm Turnbull has not spoken at length about the company, referring questions to the Liberal Party's organisational wing.

So what now?

Liberal Party federal director Tony Nutt, who sits on Parakeelia's board said it would assist with any relevant bodies who inquired about the company.

"Parakeelia Pty Ltd is owned by the Liberal Party of Australia," Mr Nutt said in a statement.

Tony Nutt said Parakeelia was run on a professional basis. ( ABC TV News )

"It has been in existence for many years during the administrations of various governments.

"It is run on a professional basis, independently audited and complies with the law."

Treasurer Scott Morrison described the call for a probe as a "witch hunt".

"There is absolutely nothing to suggest – and no one has presented a shred of anything credible – to suggest there's anything inappropriate about these arrangements," Mr Morrison said.