Labor caucus has voted to block a proposal for more primetime advertising on SBS.
The proposal to allow for more flexible use of the current 120 minutes of advertising per day, would allow the broadcaster to increase ads in primetime from 5 to 10 minutes and attract better revenue.
But it has been bitterly opposed by commercial Free to Air networks who have lobbied against it while Save our SBS argues it creates a fourth commercial network via stealth.
Opposition Bill Shorten has previously argued that the government was forcing the broadcaster to run more primetime ads after breaking an election promise, regarding no funding cuts to public broadcasters.
SBS Managing Director Michael Ebeid has defended the proposal as supporting its ability to reinvest in its Charter.
Communications Minister Malcolm Turnbull has previously warned unless legislation is passed by the end of June, SBS will need to axe programs or services.
Source: News Corp