AFP drops Somlyay fraud claims

The Australian Federal Police have dismissed fraud allegations against former Liberal MP Alex Somlyay.

There were claims the 23-year Queensland political veteran had billed taxpayers for his wife's employment but she had never been seen at the office during the past three years.

The AFP has reviewed documents related to the matter.

"The assessment of this matter did not identify any conduct by Mr Somlyay that would constitute a criminal offence," the AFP said in a statement.

It also looked at Mrs Somlyay's employment under her maiden name and receipt of payments for work performed.

Officers spoke to Mr and Mrs Somlyay.

"The AFP found no evidence of criminality relating to fraud against the Commonwealth to warrant an investigation," the AFP said, adding the matter was finalised.

In January, the Liberal Party banned MPs employing family members.