In May 2005 the Prime Minister informed the Australian House of Representatives that the federal government intended to reform industrial relations laws by introducing a unified national system.

In the following weeks, the Australian Council of Trade Unions (ACTU) began an opposition campaign to the proposed laws which included extensive television advertising.

In October 2005, the ACTU and the Australian Labor Party brought an action against the Federal Government, claiming that the public funds used to advertise the Work Choices legislation were not appropriated by law.

Gummow, Hayne, Heydon and Callinan JJ ruled in favour of the defendants on the basis that departmental items were not tied to their outcomes.

Justices Kirby and McHugh dissented on the account of public funded advertisement not being appropriated at law when it has no nexus with the aims of the expenditure.