Coalition resources spokeswoman Susan McDonald confirmed on Monday she had referred the "radical" group for investigation over its bid to block a gas export pipeline north of Darwin.
The charities commission has been asked to assess whether the Environmental Defenders Office (EDO) breached its tax-exempt charity status after being found in 2024 to have "coached witnesses" and "confected evidence" against gas giant Santos.
Susan McDonald says the delay caused by the case undermined investor confidence in gas exploration. (Mick Tsikas/AAP PHOTOS)
There was no place in Australia for charities to use "fake culture" to try and stop mining and gas revenue and jobs, Senator McDonald said.
The "delays and dishonesty" had severely undermined investor confidence in gas exploration and production, she said.
"For a nation that takes our Indigenous cultural heritage seriously, we need to be equally serious about how we sanction those who confect and construct Indigenous cultural heritage," she said.
If elected, the coalition has already pledged to strip EDO of $8.3 million in "taxpayer handouts" provided under the Labor government.
The group's chief executive David Morris told AAP it was Senator McDonald's prerogative to make any referrals she deems fit.
But he insisted they were a politically unaligned community legal service that provided access to justice that was usually only available to the rich and powerful.
"For almost 40 years, we have have been an essential service for people who want a world where nature can thrive and cultural heritage is respected and protected," Mr Morris said.
"In a climate and extinction crisis, people need the free legal support we provide more than ever," he said.
Tiwi people had argued the fossil fuel pipeline would disturb the Jirakupai or the Crocodile Man songline, which runs from Cape Fourcroy on the westernmost point of Bathurst Island into the deep sea near the pipeline route.
Traditional owners gave evidence to a bush court in a bid to stop the offshore gas project. (Aaron Bunch/AAP PHOTOS)
They were also concerned about the potential impact of the travels of an ancestral being of fundamental importance in their culture -Ampiji, a rainbow serpent.
But Justice Natalie Charlesworth was not satisfied the evidence could be characterised as a cultural feature of an area, place or ecosystem, and EDO was later ordered to pay Santos more than $9 million to cover legal costs.
EDO's financial accounts filed with the commission on Friday revealed an $8.6 million loss for the financial year because of the failed action against Santos.
The costs awarded to Santos have been paid in full and been met through the use of reserves, insurance and the securing of a $6.5 million interest-free, working capital facility.
Although there were very powerful forces here in Australia and abroad who would be delighted if the EDO ceased to exist, pledges of support gave confidence the debt would be repaid, Mr Morris said.
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