It has even been touted as an alternative or unofficial national anthem thanks to its patriotic call of "We are one, but we are many, and from all the lands on earth we come".

But now I am Australian is at the centre of a legal battle between the federal government and the song's author, Bruce Woodley, a founding member of the hugely successful pop-folk group the Seekers.

The song, written and composed by Woodley and Dobe Newton in 1987, was included by the Department of Immigration and Citizenship in a 2008 video for councils to use in naturalisation ceremonies.

The video was distributed to about 565 councils Australia-wide from January 2009 and was used until November 2012, when Woodley, who did not give permission and was unaware of its usage, complained to the department.

Under copyright law, Commonwealth departments can use literary, dramatic, musical or artistic work without the authorisation of the copyright owner if it is in the service of the Commonwealth, a state or territory. However, the rights owner can negotiate terms of use and a fee or payment schedule.

Woodley and his company Pocketful of Tunes and the department have been unable to agree on what should have been paid for the song's use.

In July a hearing took place in the Copyright Tribunal and a judgment fixing the terms is expected to be handed down by Justice Annabelle Bennett before the end of the year.

Woodley was one of the chief songwriters for the Seekers, who had huge success in Australia and Britain in the 1960s with hits including I'll Never Find Another You, Morningtown Ride and Georgy Girl.

He composed I am Australian in 1987 during preparations for the bicentenary and Newton, of folk band the Bushwackers, contributed to the lyrics.

A cover version released in 1997 by the Seekers' lead singer Judith Durham, Russell Hitchcock from Air Supply and Mandawuy Yunupingu of Youth Yindi reached 17 on the ARIA singles chart, while a version by Jessica Mauboy, Dami Im, Justice Crew, Nathaniel Willemse, Samantha Jade and Taylor Henderson released as part of 2014 Australia Day celebrations reached number 51.