The Australian answer to SpaceX has been ordered to pay its former chief executive $2.3million after its 'Aussie Elon Musk' founder was hit by damaging accusations.

Carley Scott won the huge payout on Wednesday after the Federal Court of Australia found her evidence that Equatorial Launch Australia breached her contract was 'credible and truthful'. 

ELA and its group chief executive officer Michael Jones had faced a two-week civil trial last year after Ms Scott accused Mr Jones of bullying and racism. 

Mr Jones denied the claims and the Federal Court made no findings of bullying or personal misconduct against him. 

Ms Scott, an Order of Australia Medal recipient, had sued the company for just under $5million after she was sacked in what she claimed was a breach of contract. 

ELA has now been placed into voluntary liquidation and a report to creditors has been lodged with ASIC as an investigation into the company's conduct continues.

The company had helped successfully launch a rocket from the remote wilderness of the Northern Territory from its space station in 2022. 

ELA's space base had been positioned on Aboriginal land near Nhulunbuy and had been leased to the company by the Gumatj clan. 

 ELA told the court Ms Scott's contract was never valid and claimed she had forgone contractual entitlements to participate in a plan which gave employees company shares instead.

Mr Jones launched a counter-claim against Ms Scott, accusing her of digitally altering contract documents to her benefit, but later abandoned his legal action.

Ms Scott alleged she was subjected to 'unwarranted performance criticism in an unreasonable manner', including 'raising baseless or trivial concerns and humiliating, embarrassing or discrediting Ms Scott in front of others'.

She claimed Mr Jones repeatedly engaged in unreasonable conduct including excluding her from meetings and speaking to her rudely.

The alleged comment had come just days after another tirade by Mr Jones, court documents stated.

'Mr Jones said to Ms Scott words to the effect that she was "left-wing" and a "socialist" and then criticised her for showing support for Indigenous Australians,' the documents said. 

'Mr Jones also said words to the effect that "there's too much spending on Aboriginal people, they get enough and are still crying poor" and that "if you mother them, you just create more mothers".'

Ms Scott claimed Mr Jones also turned on women during one alleged rant.

'You're part of the school of women club,' he allegedly told her.

'Why do you think so many women get murdered before and after [Family Court cases]? It's the frustration the guys have that they're getting screwed.'

Ms Scott claimed her boss told her he had received advice from a lawyer about 25 years earlier on how to treat women during divorce proceedings.

'Make it very loud and very public, but beat your wife to death,' he allegedly said.

'And to do a "good job" of it and then claim "temporary insanity" because people will understand the stress, that "she drove you crazy" and "that advice disturbed me at the time, but from where I'm sitting now? Absolutely genius",' documents state.

Maurice Blackburn Senior Associate Imogen Szumer, who represented Ms Scott in court, said the Federal Court decision had vindicated her client.

'This is a complete vindication of Carley Scott and a testament to her resilience through complex and hard-fought litigation,' she said.

'Ms Scott joined ELA in 2018 and under her leadership as CEO, the company progressed from a fledgling start-up with no sophisticated funding to an organisation that secured the contract for NASA's first commercial spaceport launch from any site outside America, working closely with the Traditional Owners of East Arnhem Land every step of the way.

'After personnel changes in 2021 and the subsequent termination of our client's employment, ELA refused to honour the contractual benefits promised to Ms Scott.

'Our client was subsequently subjected to serious and unfounded allegations by ELA. Many of these claims were abandoned by ELA in the days and weeks before the trial, and the remaining allegations have now been rejected by the Federal Court.

'The court accepted Ms Scott's evidence and found that her contractual rights must be honoured.'

ELA had been the jewel in Australia's space dreams crown when it launched its first rocket.

At the time the launch was hailed for helping scientists explore how a star's light could influence a planet's habitability.

The rocket carried an x-ray quantum calorimeter, allowing University of Michigan scientists to measure interstellar x-rays with precision to provide new data on the structure and evolution of the cosmos.