THE fraud case against embattled MP Craig Thomson will not go before a judge and jury.

Magistrate Charlie Rozencwajg today ruled it was appropriate for the case to be heard in the Melbourne Magistrates' Court.

He said the case, while potentially lengthy, was not complex and did not come close to exceeding the court's jurisdiction.

The former Labor MP has previously vigorously denied more than 170 charges brought against him over claims he misused a union credit card for personal use including to pay for escorts.

Mr Thomson refused to speak to waiting media outside court.

But in a statement issued this afternoon he said he was pleased with today's outcome.

"The reason for the application was to have this matter heard as quickly as possible," he said.

"Despite some media reports, I am not making any admissions. But there is a threshold issue of who had authority to use the credit card, which must be heard first.

"This is an efficient use of court time and because of my limited personal resources, also an appropriate approach.

"If the Crown cannot prove its case on this issue, all other charges become null and void."

Mr Thomson is facing 173 charges of theft and fraud spanning a five-year period while he was secretary if the Health Services Union between 2002 and 2007.

The court heard some of the charges covered the period after Mr Thomson was elected to parliament in 2007.

He allegedly misused union credit cards to pay for R-rated movies, make cash withdrawals and pay for escort services.

The court heard Mr Thomson used the cards to hire X-rated movies on more than 40 occasions and for female escorts.

He also allegedly misused the cards to purchase flights for his wife on 17 occasions as well as cigarettes and firewood.

Prosecutors alleged Mr Thomson's misuse totalled about $28,000 or about $150 a week for five years.

The most serious charge Mr Thomson faces carries a maximum penalty of 10 years' jail.

But lawyers applied to have the case heard summarily, before a magistrate, where the maximum penalty is five years' imprisonment.

Prosecutor Kieran Gilligan today agreed prosecutors would not seek a prison term in excess of that.

But he said the matter should be heard in a higher court because of the complexity and seriousness of the case.

The court heard more than 141 witnesses had made statements for a brief of evidence that included more than 8000 pages in 26 volumes.

More than 800 exhibits including Mr Thomson's work diary, bank record, photos, books and DVDs also formed part of the brief.

Mr Thomson, who resigned from the ALP earlier this year, is expected to stand as an independent candidate for his seat of Dobell, on the NSW Central Coast, in this year's federal election.

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Originally published as Thomson case will go to magistrate