The construction arm of the embattled Construction, Forestry and Maritime Employees Union (CFMEU) has been forced into administration effective immediately, terminating the employment of more than 270 paid union officials and vacating the roles of elected members.
The federal Attorney-General Mark Dreyfus made the announcement on Friday, days after parliament passed legislation allowing a takeover of the union for a minimum of three years.
The Fair Work Commission has contacted Victorian barrister Mark Irving KC to appoint him as administrator.
The Western Australia and ACT branches will now also be placed into administration, despite earlier suggestions they would be omitted.
The government is seeking a clean slate across the board after allegations the union has engaged in bullying, corruption, and criminal infiltration.
Prime Minister Anthony Albanese said on Friday that he wanted to stamp out corruption in the building industry.
"We know that trade unionists do a great job when they look after the wages and conditions of their members, but there's no place for corruption or intimidation in the building industry," he said.
"To have a corrupt union, you need a corrupt employer to be paying them money and there's no place for it."
The peak body for builders, Master Builders Australia, welcomed the appointment, saying it was a "long time coming".
"This culture has existed for decades and has stifled productivity and increased the cost of construction at the expense of the community, taxpayers, jobs and small business," a spokesperson said in a statement.
"Everyone in building and construction recognises the important role that unions play in workplaces but it's clear some within the CFMEU have lost their way."
But the body also supported calls from the Coalition to re-establish a dedicated building and construction industry regulator with "real teeth".
The Australian Building and Construction Commission was abolished in February last year.
Labor moved to push urgent legislation through parliament last week but it was held up by the opposition and the Greens who sought several amendments, including a guarantee the union would be banned from making political donations.
The legislation passed on Monday after the government struck a deal with the Coalition to support a three-year minimum period of administration.
In a letter to Workplace Relations Minister Murray Watt, the administrator confirmed there would be no political donations made by the CFMEU during the period of administration.
Shadow Workplace Relations Minister Michaelia Cash on Friday said the government should provide more detail about how the scheme will operate.
"There are two lists attached to the scheme — one of officials who are being exited and one of those who are staying," she said in a statement.
Senator Cash claimed the legislation did not require National Secretary Zach Smith to vacate the role.
"The minister should answer the obvious question of how the administrator can change the appalling national culture of the CFMEU if the previous head of it is still there?"
The Greens withheld their support claiming the legislation undermined the rule of law, sparking accusations in the Senate chamber that the Greens were cosying up to the union.
They maintain that they accept no funding from the union.
CFMEU national secretary Zach Smith has previously described the move as a "targeted attack on construction workers" which undermines the union's democratic rights.
Mr Smith has been contacted for comment.