Prime Minister Scott Morrison isn't ruling out referring Home Affairs Minister Peter Dutton to the High Court over his eligibility to sit in parliament.
Mr Dutton is facing continued questions about his personal financial stake in two publicly-funded Brisbane child care centres.
The connection could potentially put the minister in breach of the constitution.
"I have been consulting with the Attorney-General and we are dealing with those issues within our internal processes," Mr Morrison told reporters in Sydney on Wednesday.
"I would not have appointed Mr Dutton to the important role he has without considering those matters."
Shadow attorney-general Mark Dreyfus has described it as "the definition of poor judgment" for Peter Dutton to be returned to the ministry as he faces potential legal questions over his eligibility.
Peter Dutton was been sworn in as home affairs minister at Government House on Tuesday. Source: AAP
On Friday, Solicitor-General Stephen Donaghue found there was "some risk" the High Court would find Mr Dutton has a conflict of interest over federal payments to the centres.
But Mr Donaghue found it was unlikely Mr Dutton would be disqualified by reason of payments made to his family trust.
"Labor is considering our options," Mr Dreyfus said on Monday.
"The solicitor-general's advice on Mr Dutton's eligibility is far from definitive. If Mr Dutton thinks all questions have been settled, he is kidding himself."
Section 44 of the Constitution bans from parliament anyone who has "any direct or indirect pecuniary interest with the public service of the Commonwealth".
Mr Dutton insists he is clear to stay in parliament and released various bits of legal advice he said supported that position.
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