THE Australian Federal Police has confirmed it is assessing whether former Member for Fairfax Alex Somlyay has committed a federal offence.

Media reports earlier this week alleged Mr Somlyay had employed his wife Jenny as a staff member on a $69,157 salary during 2012-13, with the article claiming she had not done the work and rarely went into his electoral office.

Mr Somlyay has rejected the allegations, explaining his wife was employed through a relief budget to a position while a permanent employee was on workers' compensation, that she had in fact done the work she was employed to do, and she often worked from a home office.

"Please be aware there is no investigation as such under way," an AFP spokeswoman said.

"The AFP is currently assessing available information to determine whether a potential Commonwealth criminal offence has been committed.

"As such, it is not appropriate to speculate about what further action may or may not be taken."

Mr Somlyay, a 23-year political veteran and former minister, said he had always worked within the rules.