PM tax payment innuendo 'unworthy'

Malcolm Turnbull has chided an ABC interviewer for suggesting he evaded taxes in the past.

The prime minister insisted he had always paid tax on his investment income and did not operate a family trust, a popular tax minimisation vehicle for wealthy Australians.

The Panama Papers showed "rich people" would find ways to evade taxes because "it makes good business sense as you have discovered in the past," ABC 774 presenter Jon Faine put to Mr Turnbull on Wednesday.

"I'm very conservative in the managing of my tax affairs and I can assure you the innuendo you made there is unworthy," Mr Turnbull responded.