A Victorian tennis club has taken the Australian Sports Commission to court to determine if it broke the law over the Morrison government's sports rorts saga.
The Beechworth Lawn Tennis Club wants the Federal Court to overturn the commission's rejection of a $500,000 funding application under the controversial program.
It favoured coalition-targeted seats ahead of the May election, an auditor-general's report found. Funds were paid by Sport Australia, overseen by the Australian Sports Commission.
Maurice Blackburn lawyers are asking the Federal Court to determine whether the commission acted unlawfully and in breach of its statutory duties requiring decisions to be made independently from politics.
Principal lawyer Josh Bornstein wants the application reconsidered lawfully, in what he says will be a test case for the legality of the entire scheme.
The Beechworth club wanted money to build facilities and a club house and met the commission's criteria.
"We are badly in need of new facilities and the membership numbers for our once thriving club have now also taken a hit given we don't have the facilities for people to play tennis," its president Andy Carr said in a statement.
"All we want is a fair process that assesses our application and all applications on merit."
Federal Court Justice David O'Callaghan on Friday said he hoped to have the issue set down for a one-day hearing later this year, possible in November.
The matter will return to court at a later date.