Two panels of MPs and "citizens" would run publicly-funded advertising campaigns for and against same-sex marriage under a plebiscite plan endorsed by the Coalition partyroom on Tuesday.
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But there was no guarantee that taxpayer-funded advertising would be truthful or even directly relevant to the subject of marriage.
The plebiscite mechanics were revealed for the first time in a briefing paper obtained by Fairfax Media, which confirmed each side would be allocated $7.5 million in taxpayer funds through "yes" and "no" committees. The committees would also accept donations that are tax deductible up to $1500.
Each committee would consist of two government MPs, two opposition MPs, a crossbencher and five "citizens", who are expected to be prominent advocates on either side. They would be appointed by Attorney-General George Brandis and Special Minister of State Scott Ryan.
The long-awaited details have alienated an already sceptical gay and lesbian community, with Australian Marriage Equality now openly calling on Labor to block the bill in the Senate.
Advocates are livid that public money will prop up a potentially hate-driven "no" campaign that will muddy the waters by campaigning on unrelated issues such as the Safe Schools program and same-sex parenting.
Senator Ryan could not guarantee taxpayer-funded ads would be truthful or relevant, but promised they would not "infringe appropriate standards" as set by commercial advertising guidelines.
"I would think that they would all be truthful [but] opinions are allowed in all advertising," he told Sky News. Advertising paid for by the two government committees would need to be cleared by the Service Delivery Coordination Committee of Cabinet.
Furthermore, television networks would be required to adhere to election rules under the Broadcasting Services Act, meaning they have to give "reasonable opportunity" to both sides.
In a key concession, anti-discrimination laws will not be suspended for the campaign - a demand that had been made by some on the "no" side.
AME chairman Alex Greenwich slammed the government's proposal, particularly the provision of public funding and the $1500 cap on tax deductible donations to both sides.
He said it exacerbated an uneven playing field because religious organisations were already Deductible Gift Recipients to which people could donate tax-free.
"They've created such a complicated proposal formed without any buy-in from LGBTI organisations," Mr Greenwich said. "Labor should not support it."
It also remained unclear how the committees would work with established campaign vehicles such as Australians 4 Equality, which has about 10 employees and a large network of stakeholders.
Senator Brandis revealed the plebiscite would not be binding or self-executing, which Labor previously described as "an absolute minimum requirement" for its support. Instead, Parliament would need to vote on amendments to the Marriage Act if the plebiscite is successful.
The Attorney-General said a self-executing plebiscite would have raised serious constitutional concerns and could have been susceptible to a legal challenge. But he said the Parliament would vote in accord with the will of the people.
Prime Minister Malcolm Turnbull described the plebiscite structure as a "thoroughly fair process" based on precedents set by the 1999 republic referendum.
