Christopher Pyne has accused Karl Stefanovic of defaming him on national television after the Today host compared Liberal donations to the Dastyari scandal.

"You’ve actually tried to put up a straw man Karl and it needs to be broken down. What you’ve said is wrong. Don’t defame me on national television," the Defence Industry Minister snapped back at Stefanovic during his weekly on-air appearance.

The heated argument arose as Anthony Albanese and Pyne discussed the debt repayment scandal and subsequent resignation of Senator Sam Dastyari.

"Sam Dastyari had personal debts paid and neither he nor Bill Shorten yet get it," Pyne quipped.

"The fact that Sam Dastyari doesn’t realise it’s wrong and Bill Shorten doesn’t realise it’s wrong is a big problem. And Bill Shorten’s already talking about bringing Sam back."

Pyne’s fury was abruptly cut short when Stefanovic pointed out the same Chinese firm that has paid Dastyari's $1600 bill also donated $65,000 in education funding during Pyne's time as Education Minister.

The firm donated the money, via its company, Top Education Group shortly before Mr Pyne extended the streamlined visa program from universities to the private sector.

"So they donated $65,000 to the party and then they get what they wanted, an extended visa program. But they weren't greasing any polls?" Stefanovic asked Pyne.

"I don’t receive donations Karl, donations come to the Liberal Party. I represent the Liberal Party in parliament, I don’t personally get donations put back in my bank account, and that’s wrong, and that’s what Labor doesn’t get," the minister fired back.

"Don’t defame me on national television."