Abbott gives notice of trade union bill

Opposition Leader Tony Abbott has given notice of a bill to increase penalties for union corruption. Source: AAP

OPPOSITION Leader Tony Abbott has given notice to parliament he will bring forward a bill next year to improve the accountability of union officials.

Mr Abbott says his amendments to Fair Work laws will align anti-corruption rules for unions with those that exist for companies.

Union officials would face a fine of up to $220,000 and/or five years in jail if it is found they have used their positions dishonestly and recklessly to create an advantage for themselves.

Civil penalties for officials who breach rules will increase from the current amount of $6600 to $22,000.

Mr Abbott says such penalties would provide a "genuine deterrent" against the misuse of position and power.

A Fair Work Australia investigation this year concluded that Health Services Union officials misused hundreds of thousands of dollars in members' funds.

Former HSU official and now federal MP Craig Thomson, who says he is innocent, will appear in the Federal Court in Melbourne on February 1 next year on alleged workplace law contraventions as a result of the investigation.

West Australian Liberal senator Chris Back said provisions in the Fair Work Act governing default My Super funds would limit competition in the $1.4 trillion superannuation industry.

My Super is a no-frills, low-cost default retirement savings account all superannuation funds can offer their members.

This will result in reduced fee pressure innovation for consumers, Senator Back says.

"Who might be the winners, of course, we all know the union dominated super funds," he told the chamber on Tuesday.

"That is not acceptable."

His NSW colleague Arthur Sinodinos says the bill would have a "significant" impact on every employer, employee and independent contractor.

Senator Sinodinos is the chairman of the Coalition's deregulation taskforce exploring how to reduce the burden of red-tape on the economy.

He says the Fair Work Act is one of the most important acts before the upper house.

"The opposition are disappointed that this Act was not subject to a full blooded independent review," Senator Sinodinos said.

"What has the government got to lose from a full blooded review, if we are confident in the impact of this act on the well-being of this country and on various parameters of that well-being."

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