Victoria's Liberal and National parties have landed a Supreme Court victory against the electoral commission over the transfer of money between the coalition partners.
The legal saga centred on an agreement between the parties to share public electoral funding from joint tickets in western, northern and eastern Victoria in the 2018 state poll.
But the state's donation law reforms, capping political donations at $4000, prevented the Liberals from transferring hundreds of thousands of dollars worth of post-election funding to the Nationals.
Parties were previously eligible to receive $1.79 per vote from the Victorian Electoral Commission.
Changes in 2018 boosted that to $6 per first preference vote in the lower house and half that amount per upper house vote.
The Liberals were reimbursed $757,321 after that year's poll, while the Nationals were left with just $1,410.
The Liberals wanted to give a third of the money to their coalition partner. But the electoral commission said no, because it would breach the new political donations cap.
The opposition coalition took the fight to Victoria's Supreme Court, which on Wednesday sided with the political parties.
Justice Melinda Richards found the transfer of a third of the funds from the Liberals to the Nationals was not a political donation, but "payment made for adequate consideration in money's worth".