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Posted: 2024-07-17 10:36:08

In short:

Labor minister Bill Shorten says he expects the ALP to ban donations from the CFMEU.

It follows allegations the CFMEU has links to the criminal underworld.

What next?:

The ALP executive meets on Thursday to discuss the issue.

Cabinet minister and former union leader Bill Shorten says he expects the ALP to ban all donations from the embattled CFMEU when the party's executive meets on Thursday.

"We're not taking any CFMEU money anymore. The evidence has come out. It's there. We're putting a stop on it," Mr Shorten told 7.30.

"I fully expect the national executive to make sure that there is no more donations received from the CFMEU until their house is cleaned."

The CFMEU has made large donations to the ALP over the years, including hundreds of thousands of dollars donated by the Victorian branch of the union under the leadership of then secretary John Setka.

Pressed about whether the Labor Party should return any of that money, Mr Shorten said the last significant donations "were a couple of years ago".

"We know that action has to be taken. The leadership's been from premiers and the prime minister. I don't expect any part of the party to be any different."

Broader reforms around donations

An older man in a suit and red, spotted tie, speaks into a microphone on a podium during an address.

Don Farrell is reported to be working on proposals to introduce caps on donations.(AAP: Lukas Coch)

Mr Shorten also advocated for broader reform of political donations, suggesting getting "big money out of Australian politics".

"We need to just eliminate, I think, some of the massive donations which come generally to Australian politics."

Mr Shorten referenced some of the measures being developed by his colleague Senator Don Farrell, the Special Minister for State, who is reported to be working on proposals to introduce caps on donations.

The Albanese government has appointed the general manager of the Fair Work Commission as the independent administrator of the CFMEU.

Mr Shorten says a red line has been crossed.

"The CFMEU has to have an independent administrator installed. They have demonstrated, despite what they've said, they cannot fix these issues on their own," he said. 

"Evidence revealed in the last few days of the penetration of parts of that organisation by organised crime means it needs drastic medicine, which can only be administered through the introduction of a completely independent administrator."

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