Opposition leader Bill Shorten has said he is the ‘senior Labor figure’ cleared overnight of raping a teenager in the 1980s.

"Late last year, I learned a claim had been made about me going back to when I was 19," Mr Shorten said in Melbourne today.

"The claim was made on social media when I was elected opposition leader.

"The allegation was untrue and abhorrent."

Opposition Leader Bill Shorten speaks to the media during a press conference in Canberra. (AAP Image/Lukas Coch) (AAP)

A taskforce led by Victoria Police was set up in response to the allegations.

It was alleged the assault took place at an overnight camp organised by the Victorian Young Labor Party and held near Geelong in 1986.

"The allegation was made by someone I knew briefly at that time," Mr Shorten said.

"There was no basis to the claim.

Bill Shorten during Question Time. (AAP) (AAP)

"The easy option would be to say nothing, but that is not who I am," he said.

A statement released by Victoria Police last night confirmed the historical allegations had been investigated.

Prosecutors advised there was no reasonable prospect of a conviction, and so charges were dropped overnight.

"The claim has been thoroughly and vigorously investigated by police as is entirely proper," Mr Shorten said.

Opposition leader-aspirant Bill Shorten. (AAP) (AAP)

"I have freely answered all the questions the police asked of me.

"Now the investigation has concluded, I am drawing a line under it."

Mr Shorten said the claims had been "deeply distressing" for his family, including wife Chloe.

The alleged victim, who cannot be named, told The Australian she was “really, really angry” that the case would not be pursued.

Bill Shorten in parliament. (AAP) (AAP)

Victoria Police confirmed the allegation had been investigated and the advice from prosecutors was that there was no reasonable prospect of conviction.

"All parties have been notified that Victoria Police will not be proceeding with criminal charges," police said in a statement.

Read Bill Shorten's full statement:

"Late last year I learned that a claim had been made about me, going back to when I was nineteen.

It was made on social media, when I was elected Opposition Leader.

I will not go into details, except to say that the allegation was untrue and abhorrent.

The allegation was made by someone I knew briefly at that time.

There is absolutely no basis for the claim.

The claim has now been thoroughly and rigorously investigated by police, as is entirely proper.

I fully cooperated to clear my name. And that is what I have done.

I freely answered all questions the police asked of me.

Now the police investigation has concluded, I can make this statement.

This has been deeply distressing for my family.

I am thankful for the love and support of Chloe, and the support of my staff and parliamentary colleagues.

Others who were aware of the investigation have acted with the utmost integrity by leaving the police to do their job.

The police have now concluded the investigation.

The decision speaks for itself.

It is over.

I have no intention of making any further comment."



