Tax, investment law a worry for Santa: MP

Liberal Democrats senator David Leyonhjelm has asked whether a "certain gentleman in a red suit" would be deterred from doing business in Australia by tax and foreign investment laws.

Responding to his concerns during question time, Cabinet Secretary Arthur Sinodinos said Santa Claus was the "poster boy for free trade".

"I'm advised that Mr Claus will be able to invest in developed landing sites in Australia without FIRB approval provided his investment does not exceed $55 million," he told parliament.

Senator Leyonhjelm asked if Christmas might be cancelled due to elves working under Australian workplace laws, which include the right to strike.

Senator Sinodinos assured him Christmas would not be cancelled, but said it did raise the question of having "nimble, agile elves of the 21st century".

The festive line of questioning comes a week after Senator Leyonhjelm burst into a rendition of the 12 Days of Christmas, lamenting the amount of tax bills put before the Senate this year.