Bankrupt whistleblower Kathy Jackson faces a debilitating $1.4 million claim on her estate after a systemic rort of Health Services Union money to prop up her lavish lifestyle.
The Federal Court says Jackson used HSU money to pay for travel, groceries, entertainment and even her divorce.
She has been ordered to pay $1,338,626 in damages and $67,912 in overpaid salary.
Jackson set up an unauthorised union slush fund in 2003, with $250,000 paid from the Peter MacCallum Institute.
She nominated herself as the only person authorised to access the National Health Development Account and then transferred $284,500 from branch accounts to the fund over more than six years.
Jackson used the fund to pay for part of her divorce, also withdrawing cash, going on holidays and shopping.
Some money was injected into political campaigns in unions, and the ALP.
"How would members of her branch benefit from their money being used secretly, and probably unlawfully, to fund the election campaigns of candidates in other branches or other unions," Justice Richard Tracey questioned in his judgment on Wednesday.
Jackson spent $305,828 on union-issued credit cards for travel, food, alcohol and entertainment, going on shopping sprees at Myer, David Jones, Harvey Norman and more.
She also withdrew cash from a cheque account, gave $100 each to branch committee of management members during meetings, and kept the rest in a "kitty" which partially went toward her mortgage, Justice Tracey said.
Jackson kept a false record of the withdrawals, marking them down as "honorarium", "professional development" and "conference/seminar" expenses.
She cost the union $34,725 when she hired a lawyer without authority in 2012, and a $63,000 honorarium she signed off for herself should not have been paid.
Jackson and corrupt union boss Michael Williamson together bled more than $400,000 from the union when they signed an unauthorised employment contract for former HSU national secretary Robert Elliott.
Chris Brown, current HSU national secretary, knows the union is unlikely to get all its money back, but hopes to recoup a substantial amount.
Jackson was credited with blowing the whistle on disgraced former Labor MP Craig Thomson and Williamson, who was jailed for at least five years for "leeching" HSU of almost $1 million.
"Craig Thomson's actions pale into significance compared to Kathy Jackson's, which is more on par with Williamson," Mr Brown told AAP.
Jackson declined to take part in the civil hearing against her last month, after declaring bankruptcy at the 11th-hour.
She has previously been called "heroic" by Prime Minister Tony Abbott and "revolutionary" by Education Minister Chris Pyne for exposing Thomson and Williamson.
The HSU represents some of the lowest paid workers in the country.
Jackson was paid an annual salary of $170,000 to run the union, her trial heard last month.
HOW JACKSON DAMAGED THE HSU'S BOTTOM LINE:
* The NHDA transfers - $284,500
* Cashed cheques - $238,937
* Honorarium - $63,000
* The Elliott memorandum - $411,635
* Lawyer fees - $34,725
* Credit card spending - $305,828
* Overpaid salary - $67,912
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