Labor has moved to censure the prime minister in parliament for failing to sack the unions royal commissioner.
Commissioner Dyson Heydon has decided not to speak at a Liberal Party fundraiser in Sydney on August 26 because of the potential to compromise his independence.
Despite the commissioner's decision, the federal opposition moved on Thursday to censure Tony Abbott over not sacking Mr Heydon and having established a biased a royal commission.
Manager of opposition business Tony Burke told parliament Mr Heydon, in a statement, had also failed to rule out speaking at the event once the royal commission was over.
He said invitation clearly stated money raised from the event would go to the Liberal Party and would be applied to state election campaigning.
"A royal commissioner cannot be a guest at a Liberal Party fundraiser," Mr Burke said.
"But disturbingly their party back in April thought this was okay."
Shadow attorney-general Mark Dreyfus told parliament the royal commissioner should resign or be sacked.
"He should resign because by his own actions he has created the appearance of bias and discredited and compromised every single further action by this royal commission," he said.
"And if he does not resign he should be sacked by this government."
Mr Dreyfus said Mr Heydon had been a "captain's pick" by Mr Abbott.
Leader of the House Christopher Pyne, who turned 48 on Thursday, said the debate was a "lovely birthday present".
"What a spectacular own goal from the opposition," he said.
"The very subject that they want hidden from the public view - namely, their tawdry relationship with the Australian union movement - they have decided to place front and centre of the Australian political debate."
Mr Pyne said Labor was "bashing the umpire".
"(It's) taking out a political baseball bat and attacking the umpire, attacking the head of the royal commission rather than recognising his reputation for seriousness, for fairness," he said.
Labor frontbencher Jason Clare withdrew an interjection when Mr Pyne heard him describe Mr Heydon as a "bagman".
The motion was lost with the government using its majority.
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