What does the CFMEU corruption report allege?

It alleges entrenched corruption linked to major Victorian projects and claims taxpayers lost up to A$15bn. Media reports also cite links to criminal elements. These are allegations, not findings of guilt. Police and regulators are reviewing the material, and outcomes could include audits, referrals, tighter probity, and changes to site access controls.

How could this affect Victoria’s Big Build costs?

Costs can rise if agencies and contractors add more audits, documentation, and security. Victoria Big Build costs may also increase if re‑tendering or schedule slippage occurs. Expect firmer variation controls and more milestone gating. Contractors might seek higher risk premia, while budget owners push to contain overruns.

What is the Victorian government response so far?

The government faces intense scrutiny, with pressure for independent audits and stronger probity rules. Reports allege it knew of corruption risks tied to union activity. Authorities say police and regulators are reviewing the findings. Investors should watch for concrete policy steps that determine the speed and breadth of any compliance reset.

What should investors watch in the next quarter?

Track tender cancellations or re‑scopings, tougher probity clauses, and any contract freezes. Monitor disclosure on receivables days, compliance cost buffers, and margin guidance. Watch for law‑enforcement updates and government audit announcements. Sustained procurement pauses or widespread re‑tendering would signal rising delay risk and potential revenue deferrals.

Law and Government

Jacinta Allan on February 13: CFMEU Probe Puts Victoria’s Big Build at Risk

ByHuzaifa Zahoor February 12, 2026February 12, 2026

The Jacinta Allan CFMEU probe is now front of mind for Australian investors after a report alleged entrenched corruption tied to Victoria’s Big Build and up to A$15bn in taxpayer losses. On February 13, scrutiny has intensified on procurement, site practices, and margins across public works. We assess near‑term risks, potential government actions, and what signals to watch. Our aim is to help investors price delays, audit exposure, and compliance costs without overreacting to headlines.