Fresh corruption revelations underscore risks in proposed ‘preferential’ procurement laws

29 June 2026

Fresh revelations of alleged corrupt practices between the CFMEU and organised crime is a timely reminder of the risks in the Federal Government’s proposed new procurement laws, according to Master Builders Australia.

The reports by The Age and 60 Minutes, outline the connection between taxpayer funded projects and unions, including allegations that special fees were charged if contractors wanted an enterprise agreement with the union.

These revelations go to the heart of the risk to the broader Australian economy that is posed by the preferential procurement provision in the Workplace Relations Legislation Amendment Bill that is currently before the Senate.

Following government procurement frameworks being abused across Victoria, Queensland and the ACT, Master Builders Australia is deeply concerned that the new procurement powers before the Senate risks spreading this malpractice nationwide.

Master Builders Australia CEO Denita Wawn said the Federal Government must remove the procurement provision from the Bill.

“While the Government has stated its intention to carve out the construction industry from this new procurement power that would favour businesses with union enterprise agreements, the laws still pose the same risk to every other sector in the Australian economy that engages in government procurement.

“As has been warned, including by Centre for Public Integrity director Geoffrey Watson, preferential systems like this can be vulnerable to corruption if not properly safeguarded.

“The media reports of this week reiterate that the Administration of the CFMEU was only ever the first step. We now need to see the next phase of reform delivered and fast.

“That includes implementing an industry specific regulator and our six-point plan in full, continuing Administration through to 2029, strengthening whistleblower protections, banning productivity-destroying clauses, reforming competition laws, and ensuring individuals who break the law are permanently removed from the industry.

“Workers deserve to be represented lawfully and honestly, taxpayers deserve value for dollars and builders deserve safe worksites, free from coercion and abuse,” said Ms Wawn.

Media contact: Dylan Hafey, Adviser, Media & Government Relations

0497 330 064 | dylan.hafey@masterbuilders.com.au