It was widely reported last week that our Parliament has changed the Commonwealth procurement laws. The new laws allow the government, when awarding taxpayer funded contracts, to prefer bidders who have union enterprise agreements.
We should be incensed by this change. We should be protesting, petitioning, and campaigning against those MPs and senators who voted it for it. We should also demand that the courts declare the legislation invalid.
This law is highly objectionable in two respects:
One is that it legalises corruption. The new law lets a Labor government favour unionised bidders even when a non-unionised company offers a better price, quality, or timeline.
Labor has a strong financial incentive to do this, as it receives substantial funding from unions. The result is a clear cycle: unions provide Labor with money and votes; in return, Labour directs public contracts to unionised workforces. The law also pressures companies seeking government work to sign union enterprise agreements – because without those agreements they will lose contract over contract to unionised companies. This is a clear breach by parliament of our fundamental right of freedom of association. Nevertheless, as more companies convert to unionised workplaces, union membership and fees will increase, and more money will flow back to the Labour Party. Victorians have already seen the consequences—major public infrastructure projects routinely run late and massively over budget because unions “milk” the projects for as much as they can.
What was once hidden corruption—done behind closed doors—can now happen openly, in full public view. The audacity of it is staggering. Surely, we are better than that as a nation.
The other reason the law is toxic is because it amounts to a fundamental breach by the supporting politicians of their core duty, as our representatives, to act in our interests. Elected representatives are meant to act in the interests of the people who elect them. Awarding contracts based on whether a workforce is unionised, rather than on price, quality, and timely delivery, clearly does not serve the public interest. By supporting this law, the MPs and Senators who backed it have openly disregarded their core responsibility. They have, in plain terms, given the middle finger to the electorate.
What Should be done
Our courts should strike down this law as invalid – because it is a fundamental breach by parliament of its core duty to act in the interests of the public, not the unions or the Labour party. If they lack the power to do so, we must give them that power. If they have the power but don’t exercise it, we must overhaul the judiciary.
If the courts don’t declare this legislation as invalid or are slow to do so, the legislation must be repealed.
Also, any contract won through union preference must be cancelled and every taxpayer dollar paid to the contractor must be repaid in full. Companies cannot claim ignorance: they would know that the law violated parliament’s duty to serve the public interest and so it operated beyond its proper powers.
This change in the Commonwealth procurement laws reveals a deeper problem, a broken system of government.
The root issue lies with the judiciary. We expect our courts to ensure that the executive and legislative arms of our government do not exceed their powers as our representatives, and so we expect our courts to stop politicians from acting against the public interest by favouring the unions or some other group. But the problem for us is, our courts don’t do it. This is a fundamental failure by our courts to perform their core duty. Our courts need to ensure that parliament is well aware that it has no power to legislate in direct conflict with its core duty to the people. If the courts claim they lack this authority, then we must give it to them. If the courts are unwilling to act, then we must reform the judiciary.
So, what’s the solution:
We know the problem – dishonest politicians – and its root cause: a judiciary that does not fulfil its intended role. We just need to elect a party that will repeal this law, cancel contracts made under this corrupt law and restore proper checks and balances.
Classic Liberals is currently the only party committed to doing exactly that. If you do not want to live in a corrupt country where public money is funnelled to favoured groups at the expense of taxpayers, support the Classic Liberals in every way you can.
Written by Mark M.J. Morris (July 2026)