Unions royal commissioner Dyson Heydon has admitted he knew as far back as April 2014 that an event he agreed to address was organised by a Liberal Party branch.
The former High Court judge could face a disqualification hearing brought by the ACTU on Friday after he revealed a series of emails relating to his invitation to make the annual Sir Garfield Barwick address.
The ACTU has until Thursday afternoon to decide whether to seek Mr Heydon's removal from the controversial inquiry into union corruption over perceptions of bias.
Mr Heydon told the commission hearing in Sydney he was made aware of the Liberal Party connection in an email dated April 10, 2014 - a month after he was formally appointed a royal commissioner.
"The email stated that it was organised by a body which I was told was one of the lawyer branches of the Liberal Party NSW division which had a focus on professional engagement," Mr Heydon said.
However, he did not understand the event to be a party fundraiser.
Mr Heydon said he could only deliver the address if the royal commission had finished, which at that stage was due to be December, 2014, but was extended by one year. Mr Heydon said he had "overlooked" the Liberal connection when he received other emails about the event earlier this year.
It was not until last week - when he read the latest email from organisers - that his office wrote back: "If there is any possibility that the event could be described as a Liberal Party event he will be unable to give the address, at least whilst he is in the position of Royal Commissioner."
Mr Heydon decided not to speak at the event shortly after sending the email.
The ACTU on Monday sought the release of the emails to help it consider whether to seek Mr Heydon's removal on the grounds of bias. Counsel assisting the commission Jeremy Stoljar said the application "smacks of grandstanding", and the commissioner initially gave the ACTU only an hour to consider the emails.
But the ACTU's counsel Robert Newlinds said it was a serious matter and required a careful analysis of the emails.
ACTU secretary Dave Oliver said there was at least an appearance of bias because Mr Heydon knew the speech was a Liberal event, and he had overlooked the fact it was a fundraiser.
In parliament, Prime Minister Tony Abbott described Mr Heydon as professional and impartial. "It's never been disputed that this was a Liberal Party event," Mr Abbott said.
But Mr Abbott said once Mr Heydon was aware of the connection he withdrew from the event. Mr Heydon said he "glanced" at an email sent to him on June 12 this year about the event, but did not look at its attachments.
The attachments, released on Monday, clearly stated money from the dinner would go to the Liberal Party's NSW division.
Cabinet minister Christopher Pyne said it was not immediately obvious it was a Liberal Party event.
"The man on the Clapham omnibus would not assume that the Sir Garfield Barwick memorial lecture was a Liberal Party fundraiser or event," Mr Pyne told Sky News. Labor workplace spokesman Brendan O'Connor said Mr Heydon's position was untenable.
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