Victoria’s premier says a royal commission into the state’s construction sector will have free rein to examine allegations of corruption, standover tactics and misconduct on taxpayer-funded building sites, with no individual or former government figure automatically shielded from scrutiny. Ben Carroll released the commission’s terms of reference on Thursday, hours after the governor signed the letters patent formally establishing the inquiry.
The announcement follows months of public pressure over allegations concerning the construction division of the CFMEU and its influence over major state infrastructure projects, part of what the government refers to as the Big Build program.
What the premier said #
Speaking to reporters, Mr Carroll said “nothing is off limits” for the commission, and acknowledged there had been “grift”, “thuggery” and “violence” associated with taxpayer-funded building sites. He said former premiers and ministers could be called to give evidence at public hearings if the commission considered it necessary.
VCN notes these are the premier’s public characterisations of the problem the commission has been asked to examine — they are not findings against any individual, company or union official, and no such findings have been made by any court or commission at this stage.
What the terms of reference cover #
According to the terms of reference released by the government, the royal commission has been tasked with examining:
- Allegations of corrupt or improper conduct connected to construction industry unions on Victorian government-funded building sites
- Whether existing regulatory, procurement and oversight frameworks are adequate to detect and prevent misconduct
- The extent to which alleged conduct may have affected costs, timelines or safety on major projects
- Recommendations for legislative or administrative reform
Victoria Police and other law enforcement and integrity bodies, including IBAC, have separate and ongoing roles in investigating any suspected criminal conduct. A royal commission is not a criminal trial — it cannot convict anyone of an offence — but it can make findings of fact and refer material to police or prosecutors for further action.
Why this matters for Victorians #
The state’s Big Build program — encompassing level crossing removals, the Metro Tunnel, the West Gate Tunnel and other major transport and infrastructure projects — represents tens of billions of dollars in public investment. Allegations that construction costs or timelines have been affected by improper conduct on sites go directly to how effectively that public money is being spent.
For readers unfamiliar with how a royal commission works: it is the most powerful form of public inquiry available under Australian law. Commissioners can compel witnesses to give evidence, including under summons, and can require the production of documents. Public hearings mean evidence given can be reported on, but commissions generally operate under legal protections that allow witnesses to give frank evidence without it being used directly against them in later criminal proceedings — a safeguard designed to encourage full disclosure rather than to protect wrongdoing.
Who could be called #
Mr Carroll’s confirmation that former premiers and ministers are not excluded from potential hearings signals the government intends the inquiry to be seen as genuinely independent, rather than confined to lower-level industry figures. Exactly who will be summonsed is a decision for the commissioner or commissioners appointed to run the inquiry, not the government of the day.
VCN understands the scope of potential witnesses could extend to current and former union officials, construction company executives, government department staff involved in procurement, and workplace safety regulators. No individual has been named as a target of the inquiry by the government, and being called to give evidence at a royal commission is not itself an allegation of wrongdoing.
The CFMEU context #
The construction division of the CFMEU has faced sustained public scrutiny over the past two years following allegations aired in federal parliament and reported by media organisations concerning alleged links between some union officials and organised crime figures, alleged standover conduct on building sites, and allegations of improper payments. The union’s construction division was placed into national administration in mid-2024 as a result.
It is important to note that these remain allegations that have been the subject of administrative action, parliamentary privilege statements and media reporting — not criminal convictions. Any individual named in connection with these matters is entitled to a presumption of innocence unless and until a court makes a finding against them. The royal commission’s task is to examine the sector-wide picture, not to prosecute any one person.
What happens next #
With the letters patent signed, the government’s next step is understood to involve finalising the appointment of the commissioner or commissioners and confirming a hearing schedule. Royal commissions typically publish an interim report before delivering final findings and recommendations, a process that can take many months depending on the scope of evidence to be examined.
Victoria Police has said it will continue to progress any separate criminal investigations independently of the commission’s work. IBAC, the state’s anti-corruption body, similarly maintains its own investigative functions and its work is not replaced by the royal commission.
VCN will continue to follow the establishment of the commission, including the appointment of commissioners and the release of a hearing timetable, as part of our ongoing Big Build Watch coverage.
The matter is currently before the courts in relation to separate criminal proceedings connected to construction industry figures, and all persons who may face charges arising from any investigation are presumed innocent until proven guilty in a court of law.
Readers seeking further background can consult VCN’s previous reporting on Big Build governance and IBAC’s public findings register.
If you have information relevant to alleged misconduct on government construction projects, you can contact Crime Stoppers on 1800 333 000. Anyone affected by workplace intimidation or family violence can contact Safe Steps on 1800 015 188 or the Sexual Assault Crisis Line on 1800 806 292. For mental health support, contact Lifeline on 13 11 14 or Beyond Blue on 1300 22 4636.
