12 Dec 2013

Unions facing tougher money rules

1:00 pm on 12 December 2013

A bill to impose tougher oversight and penalties on union officials in Australia has passed the lower house, but may find it tough going in the Senate.

A bill to put them on the same compliance and penalty regime as company directors passed the House of Representatives on Thursday.

The federal government proposes to set up a Registered Organisations Commission, with similar powers to the Australian Securities and Investment Commission.

AAP reports civil and criminal penalties will be established, including fines up to $A204,000 for individuals and $A1.02 million for unions.

Labor opposed the measure, saying the commission's powers are too invasive and amendments brought in last year already improve disclosure requirements, transparency and accountability while tripling civil penalties.

But government house leader Christopher Pyne said the commission needed "robust" powers to ensure compliance by unions, some of which had resources similar to large businesses.

Mr Pyne said the only people with anything to fear were dodgy union bosses and dodgy company bosses.

The Fair Work (Registered Organisations) Amendment Bill 2013 was passed by 72 votes to 50 and now goes to the Senate, where AAP reports it is likely to face opposition from both Labor and the Greens.