New PM 'slush fund' allegations

New allegations Julia Gillard was involved in the creation of an Australian Workers' Union body later used as a "slush fund" have emerged.

The Australian reports new documents, released by Slater & Gordon's former equity partner Nick Styant-Browne, allegedly show Ms Gillard fought for the incorporation of the Australian Workers' Union Workplace Reform Association.

The documents are a transcript of interview from September 1995 between former Slater & Gordon senior partner Peter Gordon and Ms Gillard, who was at the time employed by the law firm.

In the record of interview Ms Gillard reportedly told her employers the AWU association was a "slush fund" to be used for the re-election of union officials.

The fund ultimately became the vehicle through which union fraud was committed, with $100,000 from it used to buy a Melbourne home which Ms Gillard's former boyfriend, union official Bruce Wilson, lived in.

Ms Gillard has denied any knowledge of the fraud.

A spokesman for Ms Gillard told The Australian the prime minister had "no recollection of receiving or sending the claimed correspondence in this matter".

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