Questions raised over union donation

A parliamentary inquiry will look at the links between a $1.5 million donation from a peak childcare union to the Labor Party and a $300 million taxpayer funded scheme to give unionised workers a pay rise.

There were very serious questions to answer about the "unprecedented" donation by United Voice and a connection to how Labor's early years quality fund was used, Liberal MP Angus Taylor told reporters in Canberra on Tuesday.

Opposition families spokeswoman Jenny Macklin denied there was anything untoward about the donation and rejected suggestions the fund had been used to unionise the childcare workforce.

Social Services Minister Scott Morrison said it was not surprising that unions donate to federal Labor, but it was twice the amount provided at the previous election.

"The Australian people aren't fools and I think they can smell the same thing we can smell coming from that side of the chamber," he told parliament.

It was the same stench which saw the end of the NSW Labor government, he said.

The Abbott government was spending $3.5 billion to help families, not doing grubby deals with unions, Mr Morrison said.