The attorney general, Mark Dreyfus, has released a statement confirming the construction and general division of the CFMEU and all of its branches – including the Western Australian and ACT branches – would be placed into administration.
Dreyfus said he “decided it is in the public interest”, with the general manager of the Fair Work Commission appointing Mark Irving as administrator.
Dreyfus said in a statement that the administration of the CFMEU would take effect immediately.
The move comes after new revelations aired by 60 Minutes and Nine newspapers that more than 20 members of the CFMEU have been stood down following allegations the union has been infiltrated by criminal figures.
Earlier this week the Coalition agreed to back the federal government’s bill for tighter controls on the construction union.
Shadow Attorney-General Michaelia Cash said that the Coalition would “provide passage” of the legislation, which will put the CFMEU into administration for at least three years.
Additionally, the Coalition secured commitments that the union would be banned from making political donations and that the administrator would be required to report to Parliament every six months.
Last month Industrial Relations Minister Tony Burke ruled out deregistering the CFMEU, but announced the Fair Work Commission general manager had been empowered to appoint an administrator to take control of it.
Both Master Builders Australia and the Constructors Association welcomed the decision to appoint an administrator.