Centrelink is ignoring Islamic polygamy, paying spousal benefits to Muslim families with multiple wives in an effort to save taxpayers' money.

The welfare agency has revealed it refuses to collect data on polygamous marriages under Islamic law, despite the fact some families are claiming to be living in a domestic relationship with more than one woman when claiming welfare.

Describing the decision as "political correctness" gone mad, MPs last night called for a full investigation and demanded the welfare agency start collecting the data.

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