Aussie gov't in turmoil as High Court to rule on senator's eligibility

The Australian government is relying on the nation's High Court to decide if a controversial senator was illegally elected.

Prime Minister Malcolm Turnbull's Liberal National Party (LNP) has referred Bob Day, the only senator for the conservative Family First Party, to Australia's High Court after it emerged that Day may have violated the anti-corruption section of Australia's constitution.

The High Court will establish if Day, who resigned from the senate on Tuesday following the collapse of his building company - the Home Australia Group, had a financial interest linked to the Commonwealth of Australia through his Adelaide election office.

It is alleged that Day was associated with the company that owned his parliamentary office for which the government paid the rent, creating the financial interest and rendering Day ineligible to run for Australia's parliament.

Day remained adamant that he had not breached the constitution.

The controversy has left the government in turmoil with a replacement for Day unable to be appointed until the High Court case is settled as Turnbull negotiates with the senate's 20 crossbenchers as he prepares to introduce several controversial bills into parliament.

George Williams, dean of the University of New South Wales (UNSW) Law School, said the Day case could have far-reaching implications for many politicians.

"Given the possibility for many members to have indirect arrangements with the Commonwealth, I think there may be many others who wonder just how far this can go," Williams told the Australian Broadcasting Corporation (ABC) on Wednesday.

"The parties will be keeping a very close look on it because it will affect the sort of candidates they can run at future elections." Endit