Federal Labor says former High Court justice Dyson Heydon has disqualified himself from overseeing the royal commission into union corruption by agreeing to speak at a Liberal Party fundraiser.
Mr Heydon had been billed to deliver the Sir Garfield Barwick address in Sydney on August 26, but on Thursday morning he signalled he would pull out.
The brochure for the $80-a-head dinner notes that cheques should be payable to "Liberal Party of Australia (NSW Division)".
"A receipt will be issued," it says. "All proceeds from this event will be applied to state election campaigning."
Mr Heydon said in a statement that before any journalists had contacted him on Thursday he had advised the dinner organisers that "if there was 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".
Source: Liberal Party invite
Manager of opposition business Tony Burke told parliament, as he attempted to suspend business to debate the issue on Thursday, that it was an "absolute disgrace".
"By his own actions he has disqualified himself from conducting the royal commission," Mr Burke said.
Mr Heydon was a justice of the High Court from 2003 to 2013 and a NSW Supreme Court judge from 2000 to 2003.
The inquiry he heads, which is sitting in Sydney on Thursday, was initiated by the Abbott government after the 2013 election in a bid to investigate union misconduct and corruption.
Opposition Leader Bill Shorten appeared on the witness stand for two days this year, answering questions about his time as the Australian Workers Union boss.
Mr Shorten told reporters in Canberra that it was "incredibly serious" a royal commissioner investigating Prime Minister Tony Abbott's political opponents would attend a Liberal fundraiser.
Shadow attorney-general Mark Dreyfus said Mr Heydon should stand down.
"The bias and political nature of this royal commission is now clear for every fair-minded Australian to see," he told reporters.
Mr Dreyfus later told reporters Labor wanted to move a motion that would have allowed parliament to declare Mr Heydon, by his own actions, had disqualified himself.
"But that is as far as we have taken it at this point," he said.
Brandis defends Heydon speech
Former High Court judge Dyson Heydon's independence could not be questioned, says Attorney-General George Brandis.
Attorney-General George Brandis says royal commissioner Dyson Heydon would not have been aware that money from a dinner he was planning to address was going to the Liberal Party.
Mr Heydon, who is presiding over an inquiry into trade union corruption, has pulled out of the August 26 event which was raising money for the Liberal Party's NSW election campaign.
Senator Brandis said Mr Heydon was fiercely independent and "the most eminent lawyer in the country" and would not have been aware of the function's links to the Liberals.
Mr Abbott told reporters he was not aware of the matter.
"I'm just not going to get into running a speculative commentary," he said.
Greens call for trade union royal commission to be terminated
The Greens called for the royal commission itself to be terminated immediately.
"If a judge was discovered to be raising money for the prosecution, there'd be a mistrial and the case would be over," the party's industrial relations spokesperson Adam Bandt said.
ACTU secretary Dave Oliver said it was proof of the union movement's long-held belief that the inquiry was a "political witch hunt".
Mr Dreyfus said Mr Heydon should publicly release all correspondence related to the dinner.
The commissioner should either disqualify himself or the prime minister should intervene, he said.
"The first step is to raise the matter with the royal commissioner.
"If the royal commissioner refuses to disqualify himself formally it's a matter that can be taken up in (the Federal) court."
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