Builders and construction workers will be obliged to report any suspected criminal conduct on worksites in an overhaul triggered by a major investigation.
Victorian Premier Jacinta Allan welcomed former justice department chief Greg Wilson's final report on the state's construction sector, sparked by allegations of intimidation and coercion within the CFMEU.
"I'm absolutely determined that we do everything we need to do to tear this rotten culture out by its roots," she told reporters on Wednesday.
"We have zero tolerance, zero tolerance for this behaviour, and we will work incredibly hard to pull this rotten culture out by the root, by its roots, as we continue to strengthen the work here in Victoria."
Intimidation and coercion were among the allegations that sparked the building worksite review. (Darren England/AAP PHOTOS)
Among eight recommendations is a central complaints body to help rid the CFMEU of "criminal and unlawful conduct".
Others include the establishment of an alliance involving state and federal law enforcement, and amending what constitutes a 'fit and proper person'.
This new definition would exclude people found guilty of an indictable offence over the past decade and anyone part of a criminal organisation or with a close associate who would not be found 'fit and proper'.
The recommendations and their impact would be evaluated two years after the report's delivery, Mr Wilson said.
Industrial Relations Victoria would co-ordinate the state's law enforcement agencies and regulators, and consult with federal agencies to meet the recommendations.
At this point, further reforms would be needed to provide Victorian government bodies with powers to investigate and respond to allegations of criminal or other unlawful conduct in Victoria's construction sector.
"As this report describes, a system this complex requires a multifaceted set of responses to effect change - cultural, regulatory, legal, policy and contractual. No agency on its own can resolve these issues," Mr Wilson said.
Workers are reluctant to complain for fear of reprisal and lack of confidence action would be taken. (Joel Carrett/AAP PHOTOS)
The review was sparked by allegations of serious criminal activity including intimidation and coercion in the CFMEU on government construction worksites, aired in media reports in July 2024.
It also considered whether Victoria's integrity watchdogs should be given stronger powers to investigate corruption at government worksites.
While agencies such as the Independent Broad-based Anti-corruption Commission and the Auditor-General's Office can investigate and expose corruption in public office, they don't have powers to look into contract arrangements between private-sector employers on major government projects.
An interim report released in August found "significant reluctance" among workers to make complaints within the construction industry for fear of reprisal, and because people lack confidence any action would be taken.
Even if whistleblowers wish to make a complaint, they don't know who to lodge it with, the report said.