Julie Bishop was the foreign minister who privatised foreign aid spending and now she is working for one of the biggest beneficiaries of that policy.

Key points: Ms Bishop has joined Palladium's board, which has more than $500 million in contracts with the Department of Foreign Affairs

Ms Bishop has joined Palladium's board, which has more than $500 million in contracts with the Department of Foreign Affairs Labor's Penny Wong says this is a breach of ministerial standards and has called on the PM's office to act

Labor's Penny Wong says this is a breach of ministerial standards and has called on the PM's office to act Ms Bishop says she believes she is compliant with the Statement of Ministerial Standards

Labor says Ms Bishop's new job with private aid contractor Palladium is a breach of ministerial standards.

"This is a test of the Prime Minister's integrity," Opposition foreign affairs spokeswoman Penny Wong told the ABC.

"Scott Morrison has to act."

The Prime Minister's Statement on Ministerial Standards forbids former ministers from taking "personal advantage of information to which they have had access as a minister, where that information is not generally available to the public".

Ms Wong said Ms Bishop had breached that standard.

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"Palladium itself has said that she has been appointed in part, for example, for her extensive network of global contacts," she said.

"The statement by Palladium makes it clear Ms Bishop has been appointed because of her unique knowledge."

Labor said Palladium currently had contracts worth in excess of $500 million with the Department of Foreign Affairs.

As foreign minister, Ms Bishop shut down AusAid, the Government's longstanding aid delivery organisation, and opened up the foreign aid budget to private contractors such as Palladium.

"Ms Bishop has been appointed to the board of a company which profited from decisions she made as a minister," Ms Wong said.

The allegation follows former defence minister Christopher Pyne's decision last week to take a job as a defence consultant with global business advice giant EY.

Ms Wong said he too breached ministerial standards by taking on the role.

"It isn't sufficient for either Christopher Pyne or Ms Bishop to say, 'I think I'm complying and that is the end of the matter'."

Ms Bishop told the Australian Financial Review she believed she was compliant with the Statement of Ministerial Standards.

"The rules for former ministers are clear and we refer you to statements made by Ms Bishop on the matter," Mr Morrison's office said in a statement to the ABC.

Both Ms Bishop and Palladium refused the ABC's request for an interview.