Victorian Liberal Party loan dispute raises question over whether political party rules are above the law

The ongoing legal battle between Victorian Liberal Party MP, John Pesutto, and Liberal MP, Moira Deeming, has raised concerns among political observers and lawyers alike after the Liberal Party stepped in to secure loans for Pesutto’s costly legal fees.

Slater and Gordon Land Rights Disputes and Advisory Senior Associate Adrian McMillan said the case exposes a grey area over whether the courts can, or should, intervene in internal political party disputes.

The law in this area is far from settled. The highest courts in Victoria and NSW have completely different opinions on whether rules of political parties are justiciable. In other words, if the matter can be heard before the courts.
This dispute has the potential to end up all the way in the High Court, with the Court asked to rule on this hotly disputed topic,

Mr McMillan said.

The administration committee of the Victorian Liberals resolved to allow its investment company (Vapold) to loan John Pesutto MP $1.55m to cover his legal costs debt to Moira Deeming.

A hearing is listed in the Victorian Supreme Court for March 2026, seeking an injunction against the validity of the Administration Committee’s decision.

This case raises the important issue of whether political party rules are justiciable, and if they are subject to trial in a court of law.

The current law in Victoria is that political party rules are justiciable.

Conversely, the position in New South Wales is that they are not.

Political observers and pundits all over Australia will be watching this unfold with great interest,

Mr McMillan said.

Adrian McMillan is available for interview. Contact the media team for details