The changes, twice thwarted by the Senate, would ensure unions and their officials play by the same rules as companies and their directors by subjecting them to the same penalties that apply to companies and their directors, as set out in the Corporations Act.

The Coalition's changes would also introduce a new Registered Organisations Commission, which would replace the Fair Work Commission as the enforcer and investigator of unions.

Under Labor's policy, the Australian Security and Investments Commission, which already has coercive powers, would become the enforcer and regulation fo unions in cases of serious breaches of the Registered Organisations Act.

Fair Work Australia would continue as the regulator in terms of investigating minor compliance issues. It will be given an extra $4.5 million over four years to step up monitoring of the nation's 109n registered unions. ASIC and FWA would be able to share information.

The fine for an official who tries to deceive the regulator or refuses to comply with a directive will jump from $10,800 to $18,000.

Penalties to double

The maximum penalty for all offences under the the Registered Organisations Act will be doubled, new fines of up to $216,000 will apply to paid union officials engaged in "egregious conduct" and courts will be given the power to sack them, which is in line with powers under the Corporations Act.

However, the penalties will apply only to paid officials responsible for financial management, not the volunteers who are officials of unions and employer groups.


Also consistent with the Corporations Act, unions will have to rotate their auditors every five years "to weed out auditors that have been part of a scam or complicit by their silence".

Sanctions for auditors failing to do their job will be punishable by up to 12 months in jail and a $4500 fine.

Protections for whistleblowers in the public sector will be extended to the private sector, unions and not-for-profit organisations.,

Mr Shorten said the government proposals, formulated when Tony Abbott was leader, were designed not just to stamp out corruption but target unions.

The government is scheduled to receive the final report from the commission soon but on Monday, Mr Shorten will seek to steal the march.

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