But a former government adviser and Labor have alleged the set-up is a "scam" or "washing machine" for profits originating from taxpayers' money after Fairfax revealed Parakeelia has paid $1.1 million into Liberal accounts over the past three years. Tony Nutt is the Liberals' national campaign director but also a Parakeelia director. Credit:Jessica Hromas Liberals have denied Parakeelia "donates" to the party but says it sends money as "payments for services provided through the party, such as technology upgrades". A spokeswoman for real estate company CBRE confirmed that Parakeelia was a tenant at 35 Spring Street in Melbourne in 2013, a piece of prime CBD real estate that housed about 50 senior Liberal operatives and its former and current campaign directors. A party spokeswoman did not deny that Parakeelia rented the property but said the "cost of leasing the 2013 campaign headquarters" was covered by the party and came "out of the [party's] campaign budget".

Fairfax understands the Liberal party paid money to Parakeelia, which in turn paid the rent. Parakeelia was a tenant at 35 Spring Street in Melbourne in 2013. Credit:Peter Braig The Liberals did not declare any in-kind donations from Parakeelia that year. But a spokeswoman said Parakeelia bore no "net cost" from the arrangement. Parakeelia sent the Liberal Party about $400,000 in 2013-14, election filings show. The party sent a lesser amount to Parakeelia: about $250,000. The campaign did not say if Parakeelia rented any other properties on the Liberals' behalf. Fairfax has asked CBRE if it requires tenants to be incorporated as corporations; the Liberal party itself is not structured as a corporation.

Fairfax revealed last week that Parliament House staff claiming taxpayer-funded salaries as media advisers simultaneously did work for Parakeelia. One Liberal staffer operated a private Parakeelia-linked e-mail address and was listed as the "operations director" for the company's Feedback brand of software. CBRE refunded Parakeelia a security deposit of about $45,000 when the lease ended. That amount was refunded directly to Parakeelia, according to donations disclosures. Money sent to the Liberals by Parakeelia was listed as "other receipts", a category of cash transfer other than donations such as interest on investments. Parties have declared large payments from companies such as Coles and Woodside Petroleum as "other receipts". Reimbursements from the Australian Electoral Commission and Finance Department are also marked "other receipts". In 2015 Parakeelia sent $500,000 to the Liberals and received no money in return.