Prime Minister Tony Abbott has accused The Guardian website of trying to dig up dirt on his daughter.

Frances Abbott won a $60,000 scholarship to Sydney's Whitehouse Institute of Design in 2011.

This week, The Guardian revealed Mr Abbott is a close friend of the institute's chairman, Les Taylor, and questioned whether the scholarship should have been declared on his interests register.

Mr Abbott says he has fully complied with the disclosure rules.

"She won the scholarship on academic potential, she kept it on academic performance," he said.

"I'm very, very proud of her and I think family should be off-limits when it comes to party political contention."

He says the accusation is "just a bit of dirt digging".

Frances Abbott won a $60,000 scholarship to Sydney's Whitehouse Institute of Design in 2011. ( AFP: Saeed Khan, file photo )

"I know this is something The Guardian is obsessive about and fair enough if you want to have these obsessions... go for it," he said.

"But I am here to lead our country, not to cooperate in some kind of taking-out-the-trash exercise."

In response to a discussion about the scholarship on ABC's The Drum program on Wednesday night, the design institute issued a statement from chief executive Ian Tudor.

"I have read The Guardian's article and can confirm that Whitehouse has given scholarships for at least the 10 years that I have been with the institute," the statement said.

"There are various types of scholarships, some of which are awarded by the institute itself, some by entities associated with the institute who seek to provide some benevolence to its students, and other scholarships, including the Accademia Italiana scholarship which are awarded jointly by Whitehouse in association with an industry partner or industry association.

"This is pretty typical of most higher education providers.

"Frances Abbott's scholarship was the Chairman's Scholarship, which is awarded occasionally. Frances was the second recipient.

"I understand that the selection of Frances was done at arm's length from the chairman by the owner, founder and managing director of the institute, Leanne Whitehouse."