Paying politicians almost $280 a night to stay at a property owned by a relative passes the pub test, says Prime Minister Malcolm Turnbull.

Key points: Michael McCormack claimed more than $48,000 in three-year period to stay in wife's Canberra investment property

Michael McCormack claimed more than $48,000 in three-year period to stay in wife's Canberra investment property Malcolm Turnbull said those travel allowance claims passed the "sniff test"

Malcolm Turnbull said those travel allowance claims passed the "sniff test" A review into parliamentary entitlements system said current arrangements for overnight stays in Canberra were reasonable

Federal politicians get an overnight travel allowance of $276 a night when staying in Canberra, with the exception of ACT-based MPs and senators, who receive $87.

The payments have come under scrutiny following a report by Fairfax Media, which said government frontbencher Michael McCormack stayed at his wife's Canberra investment property while claiming the allowance.

The Nationals MP reportedly claimed more than $48,000 in Canberra travel allowances between May 2013 and June 2016 to stay at the property, purchased in 2013.

Mr McCormack is not the only politician to have claimed allowances for staying at a property owned by a relative and has not broken any parliamentary rules regarding travel allowances.

Mr Turnbull today backed his colleague, telling Melbourne radio station 3AW the claims passed the "sniff test".

"Does giving everybody $276 a night [in] travelling expenses in Canberra pass the sniff test? Yes, I think clearly it does, assuming you think that's the right amount," he said.

"If then does it matter where that person stays, is that of any concern to the Government and/or the taxpayer? As long as the cost if the same across the board, then that is a fair system."

Mr Turnbull said politicians were entitled to decide where they stayed when in Canberra, under the system which has been in place "for decades".

A review into the parliamentary entitlements system, instigated by former prime minister Tony Abbott, also backed the current system.

It stated the current arrangements for overnight stay in Canberra were reasonable.

"It also considers that how parliamentarians use the flat rate allowance to support their accommodation in Canberra is a matter for them," it read.

Politicians are also entitled to a travel allowance for overnight stays outside Canberra, with varying rates for different positions and locations.

Office holders are given larger allowances in some locations, while the Prime Minister is limited to $564 for each overnight stay in a place other than an official establishment or the Prime Minister's home base.

There is also a limit on the number of overnight stays that politicians can claim — up to 90 for some MPs.

'No reason' why Ley couldn't return

Mr Turnbull also stated there was no reason why former health minister Sussan Ley could not return to the frontbench.

Ms Ley resigned from Cabinet earlier this year, after it was revealed she purchased a luxury apartment during a taxpayer-funded trip.

But Mr Turnbull told 3AW Ms Ley had been a very capable minister.

"It's certainly no reason why after her resignation ... she couldn't make a return to the ministry in the future," he said.

Earlier this week, Ms Ley released the findings of an investigation into her travel claims.

The independent report, conducted and released today by the Finance Department, found the sole breach of the rules occurred when Ms Ley used a government-funded car to take her from her hotel to the apartment. The trip lasted about five minutes.

Prior to her resignation as a minister, there were other claims she had breached the rules, including billing taxpayers to attend two New Year's Eve events hosted by a prominent Queensland businesswoman and donor, and piloting a plane when other, less-expensive options were available.

However, the report found Ms Ley did not breach the rules in any of those instances.