Finance Minister Mathias Cormann "genuinely thought" he'd paid for a family holiday booked through a company that also won a government contract.
The senator has paid $2780 for flights to Singapore in January 2018, after it was revealed on Tuesday he got the holiday for free.
"The travel booked through Helloworld back in July 2017 was on commercial terms and should have been charged to my credit card straight away as instructed by me at the time," Senator Cormann said in a statement on Tuesday.
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