TREASURER Scott Morrison has slammed a Labor attack on the Coalition over a software company that has received taxpayer funds while also donating to the Liberal Party, labelling it a witch-hunt.

The company, Parakeelia Pty Ltd, donated $500,000 to the federal Liberal Party year, and several Coalition MPs have used their taxpayer-funded communications entitlements to pay the company for information about voters.

Labor leader Bill Shorten said yesterday that the Liberal Party owned the company and it looked like a "washing machine turning taxpayer dollars into Liberal Party profits".

But Mr Morrison rejected the claims as little more than "a Labor witch-hunt", saying the company was run above board and it was a "long-standing practice" that politicians used their entitlements to pay for its services.

A statement from the Liberal Party said Parakeelia was run on a professional basis "as an entity of the party", and the party would help any government agency with any regulatory queries they had.