The parliamentary privileges committee has cleared the scandal-plagued former Labor MP Craig Thomson over allegations of misleading parliament and failing to declare details of his finances on the pecuniary interests register.

Mr Thomson was referred to the committee by the Coalition in May for failing to declare that Labor had paid his legal bills incurred during a defamation case with Fairfax (owner of this website) and a drawn-out investigation by Fair Work Australia.

Craig Thomson - now an independent MP - in question time today. Credit:Andrew Meares

The Coalition had also referred Mr Thomson for allegedly misleading Parliament during his response to FWA findings that he had misused union funds for escort services, lavish meals and shopping sprees.

In a tit-for-tat move, Liberal backbencher Craig Kelly, who holds the south-western Sydney seat of Hughes, was referred by the manager of government business, Anthony Albanese, over a range of allegations, including his failure to declare on his register of interests his directorship of several companies.