Prime Minister Malcolm Turnbull has said he is confident that the seven judges will not take a literal interpretation of a 116-year-old section of the constitution that bans "a subject or citizen of a foreign power" from sitting in Parliament.
The fate of Deputy Prime Minister Barnaby Joyce is most crucial to the government in an unprecedented political crisis.
If the court rules that he was illegally elected in July last year due to New Zealand citizenship he unknowingly inherited from his father, the ruling coalition could lose its single-seat majority in the House of Representatives, where governments are formed.
Six senators could be disqualified, though the balance of power would not change since senators can be replaced without elections. Two of them however are government ministers, Fiona Nash who inherited British citizenship from her father and Matt Canavan who became an Italian through his maternal grandparents.
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Contentious decisions made by ineligible ministers could be challenged in the courts.
The Australian Constitution took effect in 1901 and only two lawmakers before now had ever been caught by the ban on dual nationals.
In both cases, the lawmaker was born overseas and was disqualified from Parliament. But four of the seven currently under a cloud the three ministers and Nick Xenophon, leader of a minor party are Australian-born and did nothing to become foreign citizens.
The government argued that only New Zealand-born Scott Ludlam and India-born Malcolm Roberts should be disqualified. The government argues that those two senators from minor parties failed to take reasonable steps to ensure they were not dual nationals.
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