"This looks like a Liberal Party washing machine turning taxpayer dollars into Liberal Party profits," Opposition Leader Bill Shorten told reporters in Perth. "Mr Turnbull needs to get off the fence and stop being in denial about the scam. Opposition Leader Bill Shorten. Credit:Alex Ellinghausen "He needs to say whether he will continue the scam and approves of it or alternatively that he thinks it's improper and will shut it down. They are the only two options he has. "I think for the sake of confidence in Australian democracy, the Liberal Party need to come clean on their activities and the buck does stop with Malcolm Turnbull. "He's running for Prime Minister of Australia. He needs to say, does he condone what's been going on or will he say it's improper and stop. A question he cannot avoid."

Mr Shorten said that Labor's shadow special minister of state, Brendan O'Connor, has written to the Auditor-General calling for an investigation into the issue. Prime Minister Malcolm Turnbull Credit:Andrew Meares The party has denied that this money is donations but is "payments for services purchased through the party". It has declined to detail this arrangement. The party has refused to directly say if the company makes a profit from money originating from taxpayers. It has said only that it is "not run as a profit centre", a term that does not preclude Parakeelia generating a surplus. Finance Minister Mathias Cormann has so far refused to explain the operations of Parakeelia. Credit:Andrew Meares

Prime Minister Malcolm Turnbull brushed aside questions about Parakeelia and whether its links to the Liberal Party were appropriate on Wednesday. Mr Turnbull said it was a matter for the party organisation. "That entity has been providing effectively database services to Liberal Party members as indeed a similar entity has been doing for Labor members for many, many years," he said. And Special Minister of State Senator Cormann dodged questions, repeatedly, about whether a potential conflict of interest existed. "All questions in relation to Parakeelia ought to be addressed to the Liberal Party organisation. In relation to staffing arrangements, all arrangements that have been in place in relation to these matters are entirely lawful and appropriate," he said.

"In relation to Parakeelia, I refer you to the Liberal Party organisation." Fairfax Media revealed on Monday that emails show parliamentary staff were working for the Liberal-linked software company that has transferred large sums of money to the party exceeding $1 million. "Training sessions are provided regularly and there is no cost involved," a 2014 email from Liberal staffer Sallyann Innes obtained by Fairfax reads. Ms Innes was operating a private email address linked to Parakeelia and listed as "training and operations" director for Feedback software. She regularly ran support workshops for the software in capital cities. But at that time she was listed in staff directories as collecting a taxpayer-funded salary as a government adviser in Parliament House.

Money coming into Liberal accounts is marked as "other receipts", a category of income other than donations but which can include interest on investments. Political scientists note such payments have become increasingly important to political parties and little is known about them. Other companies that sent money to political parties under the heading "other receipts" in 2014-15, according to electoral commission filings, include Coles, Woodside Petroleum and many major banks. Receipts, including from the tax office, electoral commission and finance department are also marked "other receipts". Labor contracts a third party company, Magenta Linas, to run its software. The Labor Party has said that its brand of software runs at a net cost to the party.

"I can rule out that we've been paying money into Labor Party organisations and conducting ourselves in the manner of this Liberal washing machine," Mr Shorten said. Follow us on Twitter