A challenge to embattled Liberal MP Gladys Liu's election win will be heard by the High Court on Wednesday as federal Labor continues to attack the Morrison government over her past association to Chinese government-linked groups.

Failed independent candidate Oliver Yates has launched the legal action against Ms Liu, Treasurer Josh Frydenberg and the Liberal Party, arguing that Chinese language signs used during the campaign misled or deceived voters.

Signage outside a polling booth in the Melbourne seat of Chisholm. Credit:Luke Hilakari

Finance Minister Mathias Cormann is also facing demands from the Senate to respond to allegations raised against Ms Liu in the past week, after Labor and the cross bench joined to pass a motion demanding to address the issue on Wednesday.

The Liberal Party-branded signs used purple and white colours, long associated with Australian Electoral Commission material, telling voters "the correct voting method" was to put a "1" next to the Liberal candidate and then number the rest of the boxes from lowest to highest.