The federal director of the Liberal Party says the party will "fully assist" any regulatory body wanting to investigate payments made to software company Parakeelia.

Federal Labor has called for an urgent investigation into the Liberal Party-owned company, which receives taxpayer funds while also paying large sums to the party.

The Liberal Party has been questioned for days about the flow of money from Parakeelia to the party's coffers.

Liberal politicians have used electorate allowances to pay the firm, Parakeelia, for software that keeps information about constituents.

Parakeelia has pumped more than $1 million back into the federal Liberal Party, including $500,000 last financial year, which the party reportedly said were "payments for services purchased through the party".

In a statement, the Liberal Party's federal director Tony Nutt said Parakeelia was run on a professional basis and that the party would assist any relevant bodies who inquired about the company.

"It is run on a professional basis, independently audited and complies with the law," the statement said.

"In addition, as an entity of the party, it is subject to Australian Electoral Commission oversight.

"If the Department of Finance, the AEC or any other relevant body has any queries the Liberal Party will fully assist as we would with any other regulatory body."

Attorney-General George Brandis said the company obeyed the law and that the Liberal Party and Parakeelia were compliant with all their legal obligations.

Turnbull, Cormann dodge questions about company

But Opposition Leader Bill Shorten has labelled the practice a "scam" and said the ALP was urging the auditor-general to investigate.

"This looks like a Liberal Party washing machine turning taxpayer dollars into Liberal Party profits," Mr Shorten said.

"I think for the sake of confidence in Australian democracy, the Liberal Party need to come clean on their activities and the buck actually does stop with Malcolm Turnbull.

"He's the beneficiary of this Liberal Party fundraiser. He's running for Prime Minister of Australia."

Mr Turnbull has deflected questions about Parakeelia, saying "it's a matter for the party organisation".

"That entity has been providing services, effectively database services to Liberal Party members as indeed a similar entity has been doing for Labor members for many, many years," he said.

Treasurer Scott Morrison said the call for an investigation was simply a "desperate witch hunt" by the Opposition to distract from Labor's economic policies.

"There is absolutely nothing to suggest – and no one has presented a shred of anything credible – to suggest there's anything inappropriate about these arrangements," Mr Morrison said.

"Bill Shorten needs to put up if he's going to engage in these distractions.

"And that's what it is – he's desperate because he's got higher debt and he's got higher deficits and he's running for cover."

Coalition campaign spokesman, Finance Minister Mathias Cormann, was repeatedly asked about Parakeelia on Wednesday.

"All questions in relation to Parakeelia ought to be addressed to the Liberal Party organisation," Senator Cormann said.

"In relation to Parakeelia, I refer you to the Liberal Party organisation."