Prime Minister Anthony Albanese has been slammed for attending an exclusive dinner with links to an alleged overseas fraudster.

The meal was hosted by Felix Lee, the 25-year-old son of Chinese billionaire Phillip Dong Fang Lee who is accused of funnelling money from China into Australian bank accounts.

WATCH THE VIDEO ABOVE: PM faces scrutiny over dinner hosted by alleged ATO fraud’s son

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Lee is reportedly being pursued by the ATO for nearly $300 million in unpaid taxes and is allegedly on a payment scheme involving the $40 million property where the dinner was held.

A $1 million donation to the Labor Party was promised at the dinner, according to reports form the AFR.

Nationals Party leader Matt Canavan slammed the Prime Minister and called for Labor to refuse the donation.

“This does stink,” Canavan told Sunrise.

“At the very least here, the Prime Minister needs to explain why he didn’t know these issues.

“What the Labor Party should clearly do here is just give back the money or not take the donation.”

Social Services Minister Tanya Plibersek defended the Prime Minister and the donations made at the dinner.

Prime Minister Anthony Albanese has come under fire for attending an exclusive donor dinner at a property allegedly owned by an overseas tax fraud. Credit: Mick Tsikas/AAP

She said Lee wasn’t present at the dinner, just his 25-year-old son, while also disputing the amount raised at the dinner.

Each attendee was expected to donate $10,000 to the Labor Party, according to the Sydney Morning Herald.

Plibersek also spruiked the government’s latest changes to political donation, set to be introduced on January 1, 2027.

“What they do is say no-one can make a donation larger than $50,000,” Plibersek said.

“And secondly, would have to disclose (donations) in pretty much real time.”

Nationals leader Matt Canavan said Albanese’s involvement ‘stinks’ and that Labor should hand back the donation. Credit: Sunrise

Canavan hit back, asking why the government why the new donation laws aren’t in place now.

“If they’re so good to come into effect January 1st, why don’t they come into effect now?” He asked.

“Just don’t take this money ... And that clears it all up.”

Plibersek baulked at whether the Prime Minister should return the money, instead saying the decision would come down to the party and not Albanese himself.

Albanese previously dodged questions about the dinner, saying he “attends lots of functions”.