In 1979, allegations were made in an ABC documentary and in the New South Wales and Federal parliaments that Urbanchich had been a Nazi collaborator and anti-Semitic propagandist for the Slovenian government during World War II. He was briefly suspended from the party, but avoided expulsion when the State Executive found by a majority that the claims against him were false. He was replaced, however, as President of the Ethnic Council by Frank Calabro. In 1986 Urbanchich admitted that "I did follow (Leon) Rupnik and I thought it was correct thing to do at that particular time", but maintained " never said 'Heil Hitler', I never put a Nazi uniform on, I never greeted in the Nazi way."