Malcolm Turnbull has defended a past business deal in which he retrieved some of his investment in a tech company as other investors and workers lost money and entitlements.
Shadow attorney-general Mark Dreyfus asked the prime minister in parliament on Tuesday whether he had let down workers at the sports technology company, Revo Pty Ltd, which traded as PlayUp.
The prime minister's investment firm Turnbull and Partners made the $US1 million investment in 2012.
When he became communications minister in 2013 Mr Turnbull attempted to dispose of the holding.
As the Turnbulls sought to sell their shares, the board - whose consent was needed - proposed the shares be sold to an associated company, Revo Nominees Pty Ltd.
The equity was converted to a loan to be repaid over three years with 12 per cent interest.
But as repayments began, it emerged that PlayUp staff were not being paid their wages or superannuation and in May 2015 the last PlayUp staff were made redundant.
In November last year the Turnbull and Partners debt was signed over to the Turnbulls' son, Alex, and two months later Revo was placed in liquidation.
Alex Turnbull has since sold the debt to a Sydney investment firm.
The prime minister said neither he nor wife Lucy had any management involvement with Revo.
"Our position was simply as an investor and then subsequently as a creditor," he told parliament.
"Our dealings were entirely at arm's length."
Mr Turnbull said criticism could be made of Revo's directors and whether an administrator should have been appointed earlier.
"But they cannot be directed at external creditors such as ourselves ... and it is a very, very low and unworthy smear (by Labor)," he said.
