The issue came to a head when LNP senator Ian Macdonald, who has been a frequent critic of his own side since he was demoted from the frontbench after the election, told Mr Abbott his priority should have been the regular party room meeting, which is held every Tuesday morning when Parliament is sitting.

But Senator Macdonald was swiftly rebuked by colleagues including backbencher Ewen Jones, who said Senator Macdonald's constant criticism of his own team had "overstepped the mark".

"I have the highest regard for Ian as a man but the direction he has taken is unfortunate," Mr Jones said.

Several government sources told Fairfax Media they were stunned to hear the Prime Minister respond to Senator Macdonald's complaint by saying he had to schedule an official function on Tuesday morning so he could justify being in Melbourne for a fund-raiser the night before under entitlements.

Cabinet Minister Malcolm Turnbull told ABC Radio on Wednesday morning Mr Abbott was "upfront" about why he was in Melbourne on a parliamentary sitting day but said he "did not recall" the prime minister saying anything about entitlements.