CFMEU Queensland Branch Faces Probe into Financial Irregularities and "Shadow Operations"

In short:

A probe into allegations of misconduct and criminal links at CFMEU's Queensland branch has turned to financial irregularities.

Counsel assisting the inquiry accused the union of using "shadow financial operations" to to bolster its revenue and control the construction industry.

What's next?

Criminologists will give evidence to the inquiry about "illegitimate influence and control".

The CFMEU generated millions of dollars through the "illegitimate" use of workplace agreements as part of a "dark strategy" concealed from members and contractors, an inquiry has heard.

The probe into alleged union misconduct and criminal links in Queensland has turned to financial irregularities involving the CFMEU's state branch, including unexplained transactions and transfers.

Counsel assisting the inquiry Andrew Meagher KC told Wednesday's hearing the union weaponised enterprise bargaining agreements [EBAs] — which dictate pay, conditions and entitlements — to bolster its revenue.

"The CFMEU was running a dark strategy, by which I mean it wasn't disclosing its strategy to its membership or any other parties," Mr Meagher said.

"Of course, disclosure was required under the law in respect of enterprise agreements."

'Far darker purpose'

Mr Meagher said the "shadow financial operations" delivered recurring annual income and occasional one-off payments for the union.

He alleged the strategy had the "far darker purpose" of allowing the CFMEU to control the construction industry.

Mr Meagher cited the controversial Best Practice Industry Conditions (BPIC) policy — adopted by the former state Labor government — as an example of the "disproportionate" and "improper" influence achieved by the union.

The inquiry heard the CFMEU received $8.8 million in revenue in 2025 from the Queen's Wharf Brisbane EBA.

Donations allegedly used to pay fines

On Tuesday, the inquiry heard the Queensland branch of the CFMEU improperly used donations to pay members' and officials' fines, including one for more than $30,000.

Mr Meagher told the hearing the union secretly covered personal penalties — totalling more than $156,000 — for breaches of the Fair Work Act.

He said the funds allegedly came from a donation pool meant to help people with financial difficulties.

"This practice successfully circumvented the rule of law and investigations are ongoing as to the full extent to which the CFMEU-Q paid pecuniary penalties that were the subject of personal payment orders," Mr Meagher said.

" It was not necessarily unlawful but it is certainly illegitimate in the sense that it is morally repugnant. "

Two world-leading criminologists will take the witness stand at the inquiry on Thursday to explain how "illegitimate influence and control" is achieved and maintained.