In short:
The Allan Labor Government has proposed expanding IBAC’s powers to investigate taxpayer funds flowing through subcontractors and labour-hire companies. Critics say the reforms are needed but argue the proposed timeline could delay stronger anti-corruption measures until 2028.
Proposed IBAC Expansion Gets Mixed Reception
The Allan Labor Government has announced plans to strengthen Victoria’s anti-corruption watchdog, but the proposed changes are not expected to be legislated until after the 2026 state election.
The reforms follow ongoing scrutiny of Victoria’s construction sector and allegations of criminal infiltration on major government-funded projects, including concerns surrounding elements of the CFMEU.
Critics have argued the existing powers of Victoria’s anti-corruption watchdog, IBAC, are insufficient to fully investigate allegations involving organised crime and public sector corruption.
The issue has gained increased attention following claims that as much as $15 billion in taxpayer-funded construction spending may have been affected by misconduct, although the figure remains contested and has not been independently verified through a formal inquiry.
Under the government’s proposal, a parliamentary committee will examine potential reforms to IBAC, including stronger investigative powers.
Move Towards Curbing Corruption
One of the proposed changes would allow the Independent Broad-based Anti-corruption Commission (IBAC) to pursue taxpayer funds through subcontracting arrangements and labour-hire companies, including those operating on major construction projects.
However, critics have questioned the timeline, noting the changes may not take effect until 2028.
Opposition Leader Jess Wilson said the reforms were being delayed for political reasons.
“If these powers are needed, they should start now,” Ms Wilson said.
“Instead, Jacinta Allan is asking Victorians to wait at least another 18 months while the cover-up continues and taxpayers continue to be rorted.”
Not Enough According to Other Parties
West Party upper house candidate Dr Joe Garra also criticised the announcement, arguing the proposed timeline was too slow.
“The West Party has been advocating for increased powers for IBAC and for a Royal Commission to investigate into the $15 billion that has gone to criminals,” Dr Garra said.
He said delaying potential reforms until 2028 was unacceptable.
“That is disgrace,” Dr Garra said.
The Allan Labor Government has defended the process, saying the parliamentary review will ensure any reforms are properly considered before legislation is introduced.
The debate is expected to remain a major political issue leading into November’s state election, with questions continuing over the extent of alleged criminal activity on publicly funded construction projects and whether Victoria’s existing anti-corruption framework is equipped to investigate it.
