Senior Liberal MP James Paterson has told his colleagues to stop talking about joining forces with Pauline Hanson's One Nation, calling them a "high-risk potential dance partner". The warning comes as Hanson hits back at Prime Minister Anthony Albanese over her party's $3 million fundraising claim.

Liberal MPs have spent the week publicly debating whether to do a preference swap with One Nation at the next election, nearly two years away. Party leader Angus Taylor and party president Tony Abbott are both open to swapping preferences. Frontbencher Tony Pasin went further, suggesting a seat-sharing deal — an idea swiftly ruled out. Senior shadow minister Jane Hume said on Friday that preferencing One Nation was "not on the cards".

Paterson, one of the most respected figures on the Coalition frontbench, said the debate was hurting the Liberal Party. "Those of us who want to drive the Liberal vote up shouldn't be engaging in this debate because we can't answer the question this far out [from the election]," he said. "One Nation are a very high-risk potential dance partner because of their policies and failure to adequately vet candidates. They aren't a party I want to formally associate with this far out from the election."

Paterson's comments came after a week in which One Nation claimed its fundraising website raised $3 million in just over two days. Senior Labor figures, including Prime Minister Anthony Albanese, questioned the amount. Hanson hit back by posting an audit to social media she said proved the money was legitimate. The audit, an informal review commissioned by the party, was conducted by independent contractor and software engineer Daryl Monnink. He said a review of the website's data and consultation with the donation code engineer showed all payments were verified and the progress bar was accurate.

"Why would I call out the liar, fire the liar, then go and do something like that myself? It'd destroy me," Hanson said on Thursday during a national tour of One Nation fundraisers.

Hanson and One Nation MP Joyce flew to Melbourne on Friday morning after sold-out events in Western Australia. Their fundraiser at a restaurant in Moonee Ponds was cancelled by the venue amid concerns about protests. The event was held at another venue in South Melbourne on Friday night. Joyce compared Melbourne to Pyongyang, saying: "This is Melbourne, not Pyongyang. You might not agree with what we have to say, but you shouldn't shut down political debate." However, Hanson said the party hadn't moved due to protesters: "We had too many bookings, [too many] people wanting to come.

Do you think I'd be deterred by the protesters?"

Australian Labor Party president Wayne Swan said he was unconvinced by One Nation's fundraising claim. "I haven't the faintest idea, but I can tell you it won't be $2 million, and I doubt very much whether One Nation has raised $2 million," he told Nine's Today show. Swan labelled the campaign a "complete farce" and accused One Nation of using it to portray donations from wealthy sponsors as grassroots support. "One Nation are the billionaires' party. They're pretending they're running small donations, and they're running money from Gina Rinehart and many other wealthy individuals."

The details of the millions in donations won't be made public until the Australian Electoral Commission publishes its declaration data on February 1. Even then, donations of less than $17,300 will remain anonymous. That threshold will be lowered to $5000 next year as part of an overhaul of laws that will also cap donors giving more than $50,000 to a party.

Coalition frontbencher Bridget McKenzie said Albanese had scored "a huge own goal" by sparking the fundraising war.

Key Facts

  • One Nation claims $3 million raised in just over two days
  • Donations under $17,300 remain anonymous until February 1
  • Threshold drops to $5000 next year, with a $50,000 cap per donor per party
  • One Nation's audit was an informal review, not an official declaration
  • Hanson and Joyce's Melbourne fundraiser was cancelled by venue, moved to South Melbourne