Major infrastructure projects will be reviewed to ensure taxpayer cash isn't going to organised crime in the wake of the CFMEU scandal, which has also sparked concerns amongst some of the union's favourite charities.
Federal Infrastructure Minister Catherine King has ordered her department to examine Commonwealth-funded projects such as Western Sydney airport and Inland rail, following allegations the union's construction arm has been infiltrated by bikies and criminals.
It's also alleged union officials had taken kickbacks from building companies in exchange for letting them onto CFMEU-controlled construction sites.
"The sorts of allegations we've seen in more recent days about the CFMEU are frankly something that we are all disgusted by," she told reporters in Canberra on Monday.
"The CMFEU needs to understand that it operates in a system where people expect that every single dollar of taxpayer money is spent properly."
Asked whether Ms King's actions were strong enough, senior Liberal frontbencher Simon Birmingham said there needed to be transparency and scrutiny over major federal projects.
"Australians are paying more for schools, hospitals, roads and housing as a result of a militant trade union that the Albanese government is refusing to deregister and appropriately reform and rein in," he told reporters in Canberra.
Prime Minister Anthony Albanese argued deregistering the union would make the situation worse by allowing it to act unregulated.
The federal and some state Labor parties have already cut affiliations with the CFMEU's construction branch while some charities are reviewing their connections.
The Flicker of Hope Foundation - a charity targeting the rare disease neurofibromatosis - has taken down its acknowledgement of the CFMEU on its website.
The foundation received "limited support" from the union, with the last occasion being a $1000 donation two years ago, it noted after expressing concerns about the allegations.
Autism support charity Amaze is also reviewing links to the CFMEU.
It noted donations were a result of "grassroots funding efforts initiated by a collective of workers on job sites or CFMEU partners who either have a personal connection to autism or those who wish to show their support for the cause".
"Amaze takes a robust and diligent approach to reviewing the support we receive, and this is strongly governed by the organisation's Donations Acceptance and Refusal policy," it told AAP in a statement.
"Amaze's Board is planning to review our ongoing relationship with the organisation in line with our policy, and from there will make the appropriate decisions."
Despite a string of criminal allegations, Mr Albanese has rejected calls from the federal opposition to bring back the Australian Building and Construction Commission after it was abolished by his government.
The commission wasn't effective and the powers held by the Fair Work Commission and police were able to tackle crimes committed, he said.
"This commission was in place while John Setka was increasing his power in the CFMEU - none of this was exposed by the ABCC and it was occurring while it was in place," he told ABC radio on Monday.
The commission, which had oversight of industrial law and had prosecuted the unions and its officials, was abolished after Labor attacked it for being politicised and going after trivial matters in a move criticised by the Liberals.
The Victorian opposition wants a royal commission into the CFMEU allegations.
The state government has instead appointed former acting commissioner of the Victorian Public Sector Commission Greg Wilson to lead a review, with an interim report to be handed down in six weeks.
Victorian Opposition Leader John Pesutto was critical of the review's scope, declaring the terms of reference don't allow Mr Wilson to investigate criminality or compel witnesses.
Labor Premier Jacinta Allen suggested a royal commission into trade union governance and corruption a decade ago had failed to live up to its billing.
Ms Allan also noted she had already referred allegations to Victoria Police and the Independent Broad-based Anti-corruption Commission for investigation.
