The auditor-general has found a Liberal Party-owned software company did not breach electoral or parliamentary rules.
Labor asked the auditor-general to investigate what the opposition described as a "scam" under which the Parakeelia company provided voter monitoring software to coalition MPs, for which they pay $2500 a year, either from their own pockets or from a taxpayer-funded allowance for software.
It was also claimed Parakeelia effectively converted taxpayer money into $1 million of political donations to the Liberals.
The auditor-general found "no evidence" the arrangements contravened electoral or parliamentary entitlement frameworks or Parakeelia donated any profits from the sale of the Feedback software to the Liberal party.
"Further the financial transactions reported to the Australian Electoral Commission between Parakeelia and the Liberal party indicated a net cost to the Liberal party from 2000-01 to 2014-15."
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Liberal federal director Tony Nutt said his party was owed an apology.
"Given that the auditor-general has now exposed the opposition's public statements about Parakeelia to be completely false, Mr Shorten and (frontbencher) Brendan O'Connor should withdraw and apologise for their statements," Mr Nutt said.
