Turnbull tax haven use bad example: Labor

Malcolm Turnbull's use of overseas tax havens is not a good example to set for the country, Labor says.

Malcolm Turnbull's investments in offshore funds may be above board but they're not a good look, Labor says.

Veteran Labor MP Wayne Swan has seized on reports the prime minister has reshuffled his hedge fund investments, most of which are registered in the Cayman Islands.

"When the leader of a country chooses to place his investments in a tax haven he provides a tacit endorsement for (their) use," Mr Swan told reporters in Canberra on Tuesday.

"Tax havens are the source of massive tax evasion by multinational companies and by high-wealth individuals."

While the prime minister may pay full Australian tax rates on his investments in the Cayman Islands his use of the tax haven is not an example to set the country, Mr Swan said.

"The prime minister constantly lectures the parliament about moral leadership," he said.

"I don't think the public can have any faith that a leader that places his funds in a tax haven will take any substantive action against tax havens."