An anti-corruption expert, independent MPs, the Coalition and the Business Council have raised serious concerns about the Government’s controversial union procurement bill that is set to be rushed through the Senate on Monday with almost no scrutiny.
The Workplace Relations Legislation Amendment (Building Cooperative Workplaces No. 1) Bill 2026 would allow the Federal Government to favour businesses with union-backed enterprise agreements when awarding contracts, grants and other taxpayer-funded opportunities.
Critics warn the changes risk increasing costs for taxpayers and consumers while creating a significant corruption risk across the entire economy using federal taxpayer funding.
Asked on Thursday about the Federal Government’s proposed procurement changes, anti-corruption barrister Geoffrey Watson SC told The Sydney Morning Herald and The Age that concentrating power over access to valuable government-funded work created corruption risks.
Mr Watson, whose landmark inquiry exposed corruption and criminal infiltration in the CFMEU and parts of Victoria’s construction sector, said:
“What I saw when I was doing the work of the CFMEU was that the power to give an EBA was concentrated in the hands of a few people, and that meant that it was very, very easily corrupted.”
In Mr Watson’s Rotting from the Top report, he also warned:
“In particular markets, an EBA can be extremely valuable. It means that you can contract for work, or if you don’t have an EBA, you may be shut out from contracting.” “It also means that people will pay bribes to get EBAs. People will solicit bribes to give EBAs.”
Independent MPs have also raised concerns about the legislation.
Member for Wentworth Allegra Spender MP said “The ability to preference union-backed enterprise agreements creates the risks that government procurement practices will actually drive corruption, as well as disadvantage small businesses who are much less likely to have enterprise agreements.”
Member for Curtin Kate Chaney MP said “Public money should go to businesses that can deliver on merit, on value, on capability not to the businesses that hold the right union agreement.”
Member for Indi Dr Helen Haines MP said “Public spending should be based on need, merit, effectiveness and value for money – not other irrelevant factors.”
Shadow Minister for Employment and Industrial Relations Senator Jane Hume said “Labor are trying to sneak a national CFMEU tax through this Parliament, a regime that has cost taxpayers when it has been implemented elsewhere.”
Business Council Chief Executive Bran Black said the legislation represented a fundamental departure from the principle that taxpayer money should be allocated on merit, value and capability.
“This is a corruption risk written into law and every Australian will pay for it.
“When governments stop awarding contracts on value for money, taxpayers pay more and consumers wear the cost”, Mr Black said.
“This reaches into every corner of the economy and the essential services Australians rely on every day, infrastructure, energy, health and defence. Any sector with government funding is at risk.”