The now-abolished Registered Organisations Commission in 2021 took civil action against Stephen Smyth, who was then a Queensland district president for mining and energy in the Construction, Forestry, Maritime, Mining, and Energy Union.
The commission alleged Mr Smyth had spent $6700 on a union-issued credit card on personal expenses, consisting of 80 transactions in 2015 and 2016.
Judge John Logan dismissed the case in the Federal Court in Melbourne on Thursday, finding that Mr Smyth acted within his understanding of the "custom and practice" of his union branch that did allow payment for infrequent and exceptional personal expenses.
"The incurring of private expenditure by the use of the union-issued credit card was not wholly forbidden by the (credit card use) policy. Some categories of private expenditure were permitted," Judge Logan said.
The expenses itemised in the case ranged from $935 for a hot water service at Mr Smyth's home to amounts of $10 to $20 spent on drinks and snacks in service stations across Queensland and a cafe in a Las Vegas casino.
The commission had sought civil penalties for Mr Smyth that under current legislation could have ranged from $31,000 to $375,000.
The federal Labor government abolished the commission in March 2023, with Prime Minister Anthony Albanese previously claiming while opposition leader that the body was "discredited and politicised" following its raids on the Australian Workers Union in 2017.
The general manager of the Fair Work Commission continued the civil case against Mr Smyth after being handed the commission's prior responsibilities.
Mr Smyth is now general vice president of the Mining and Energy Union Queensland, which withdrew from the union now called the CFMEU in December 2023.
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