Former Australian Taxation Office debt collector Richard Boyle will stand trial on criminal charges after losing a bid to halt his prosecution over allegedly releasing protected information.
In civil proceedings in the South Australian District Court, Boyle had argued that his whistleblower actions were consistent with the federal government's Public Interest Disclosure Act, rendering him immune from prosecution.
But in a decision on Monday, Judge Liesl Kudelka dismissed Boyle's claim, effectively clearing the way for his trial to proceed later this year.
It has prompted a fresh wave of criticism of Australia's whistleblower laws.
"The decision today only underscores the urgent need for law reform to ensure whistleblower protections are real and don't just exist on paper," Human Rights Law Centre senior lawyer Kieran Pender said.
"The attorney-general should prioritise comprehensive reform to the act and the establishment of a whistleblower protection authority.
"Whistleblowers make Australia a better place and our laws need to reflect that."
Federal independent MP Andrew Wilkie urged the government to drop the criminal proceedings against Boyle, saying the civil judgment had revealed again how deficient the Public Interest Disclosure Act was.
"The federal government understands there are deficiencies and is reviewing the act. But until that review is completed and the act is amended, the government should do the right thing and drop the legal action against Mr Boyle," Mr Wilkie said.
"Whistleblowers are vital to a healthy democracy and should be protected, not punished."
Attorney-General Mark Dreyfus previously declined to comment directly on Boyle's case but has said he hoped to reform and improve the scheme protecting whistleblowers.
In the criminal case, Boyle is facing 24 charges related to the release of protected material after he claimed ATO staff had been instructed to use harsher debt collection tactics on individuals and small businesses, including orders requiring banks to hand over money, sometimes without the permission of the taxpayers.
The case includes allegations he taped private conversations without consent and took photos of taxpayer information.
Boyle first raised his concerns through internal ATO processes and then made a complaint to the tax ombudsman before taking part in a joint media investigation.
Follow-up reviews found Boyle's allegations of aggressive debt recovery practices at the ATO at the time were valid.
A federal parliamentary report also found the ATO had conducted a "superficial" investigation into his public interest disclosure.
The civil action to block the prosecution was the first of its kind and was considered instrumental in determining the strength and effectiveness of national whistleblower protections.
In his evidence, Boyle told the court he had been suffering from post-traumatic stress disorder, and alleged he had been psychologically abused after he first tried to use internal processes to bring his issues to light.
Boyle's criminal trial is currently listed to begin in October.
It was not known if he will seek to appeal Monday's decision.
