AFP asked to investigate Defence Housing

The Australian Federal Police have been asked to investigate the organisation that provides housing for thousands of Australian defence personnel.

The Department of Finance has referred a matter concerning Defence Housing Australia to the federal police.

"As this matter is the subject of an ongoing AFP process it would not be appropriate to comment further," a department spokeswoman told AAP.

The Department of Finance, along with the Department of Defence, is a major shareholder in the organisation that manages a property portfolio worth more than $10 billion.

A parliamentary inquiry is currently underway into the operations of Defence Housing Australia, including senior management arrangements and board composition.

The inquiry is also investigating future land sales and the implication for residents if existing housing stock is sold.

The AFP and Defence Housing Australia have been contacted for comment.