The PM's solution to "union thuggery" is the reintroduction of the Australian Building and Corruption Commission (ABCC), which would act as a watchdog of the construction industry.

Legislation for the ABCC was rejected twice by the last parliament earlier this year, and was the cause of the double dissolution election.

The legislation passed the House of Representatives on Tuesday night and will now head to the Senate.

Labor's Brendan O'Connor told BuzzFeed News, Turnbull's argument doesn't make sense because, "The ABCC Bill doesn’t apply to residential building only non-residential building".

"And, on non-residential building, when the ABCC was last in operation between 2004 and 2012, analysis shows that the cost of building grew faster than CPI," said O'Connor.

"It cost more to build when the ABCC was around, not less."