BRITTANY Lauga says claims the Queensland Government and councils around the state have submitted dishonest, fraudulent or unlawful claims for disaster relief were "totally outrageous".

The Keppel MP's defence comes after Capricornia MP Michelle Landry said the Federal Government had "parked" $1 billion for safe keeping due to "highly questionable" natural disaster claims by some Queensland councils and the State Government.

Ms Landry said both the federal and state Auditor Generals found at least $115 million worth of claims that were lodged were unlawful and should never have been submitted to the Commonwealth for reimbursement.

But Ms Lauga said the Queensland Government was not aware of the Commonwealth Auditor General investigating millions of dollars of the claims.

"Queensland is the only state with a stand-alone agency to oversee recovery efforts and ensure value for money, and our practices have been recognised internationally," she said.

"It was the Queensland Reconstruction Authority (QRA) and the Queensland Audit Office that identified $115 million of ineligible expenditure prior to the final claims making their way to the Commonwealth - this was not identified by the Commonwealth, but was part of Queensland's robust systems and process.

"The Federal Government seems to be relying on an Australian National Audit Office report from 12 months ago that looked at New South Wales, Victoria and Western Australia - not Queensland."

Ms Lauga said the report was highly critical of the Federal Government's Emergency Management Australia (EMA) for its performance in administering NDRRA, including its failure to undertake any assurance activities over state claims.

"The Commonwealth set the rules that the states must follow, and Queensland has been compliant and cooperative every step of the way. As per the Commonwealth's rules, the Queensland Auditor General validated and certified Queensland's claim to the Commonwealth," she said.

"At the time of the budget, the Commonwealth had not even appointed an independent auditor to assure Queensland's 14-15 claim, despite it being submitted in March.

"The Queensland Government is proud of our efforts to work in partnership with councils to delivery disaster recovery funding."