Victoria’s anti-corruption watchdog IBAC gains follow-the-money powers amid Big Build corruption scandal
Consensus Summary
Victoria’s government announced plans to grant the Independent Broad-Based Anti-Corruption Commission (IBAC) follow-the-money powers to investigate corruption in the $109 billion Big Build infrastructure program, including tracing taxpayer funds through subcontractors and labour-hire firms. The reforms, announced by Premier Jacinta Allan on June 1, 2026, also include a broader definition of corrupt conduct to address non-criminal misconduct like favouritism. While the government supported most recommendations from a December 2025 parliamentary report, critics argue the changes are delayed until after the November 2026 election, with legislation expected by late 2027. The scandal involves allegations of bikie gang and CFMEU involvement, with estimates of lost funds reaching up to $15 billion, though Allan disputes the figure. Opposition parties and integrity experts warn the delays undermine accountability, while Allan insists the reforms will make IBAC a 'fit-for-purpose' agency.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- The Independent Broad-Based Anti-Corruption Commission (IBAC) will receive follow-the-money powers to trace taxpayer funds through subcontracting and labour-hire companies, including on construction sites.
- Premier Jacinta Allan announced the IBAC reforms on June 1, 2026, calling them the 'most far-reaching overhaul of IBAC’s powers since it was established in 2012'.
- The reforms include a broader definition of corrupt conduct to allow IBAC to investigate non-criminal misconduct, such as favouritism and undue influence.
- A reference group of integrity experts will advise the government on legislation by May 2027, with changes expected to be legislated by the end of 2027.
- The $109 billion Big Build infrastructure program has been linked to corruption involving bikie gangs and the CFMEU, with estimates of lost taxpayer funds ranging up to $15 billion (a figure disputed by Allan).
- The government supported 21 of the 31 recommendations from the parliament’s integrity and oversight committee report on IBAC’s powers, released in December 2025.
- Geoffrey Watson, SC, estimated in his report that up to $15 billion may have been lost to corruption on taxpayer-funded construction sites, a claim backed by Fair Work Commission’s Murray Furlong.
- The reforms will not be legislated before the November 2026 state election, delaying implementation until at least 2027.
Points of Difference
Details reported by only one source:
- Allan stated she wants the follow-the-money powers to be retrospective, allowing IBAC to examine recent allegations and work with Victoria Police to investigate criminal behaviour.
- Allan has repeatedly faced scrutiny over Victoria’s Big Build program, which has been infiltrated by bikies and plagued by corruption.
- The government gave 'in principle support' for the changes, including an expanded definition of corrupt conduct.
- The article criticizes Allan for delaying action, noting that Victorians learned IBAC would only gain powers by the end of 2027, a year after the November 2026 election.
- The opposition described the delayed timeframe as a 'sham', while the Greens expressed scepticism about the government’s commitment to reform.
- The article highlights that Victoria Police has not laid a single charge directly involving Big Build corruption despite Taskforce Hawk’s work, due to the non-criminal nature of much of the misconduct.
- The Greens MP Tim Read accused the government of using 'weasel words' regarding the broader definition of corrupt conduct, saying they only committed to 'consider' legislative options.
- The Coalition opposes the delay, committing to giving IBAC follow-the-dollar powers and establishing a royal commission into Big Build corruption if elected.
Contradictions
Conflicting information between sources:
- ABC reports Allan disputed the $15 billion corruption estimate as 'untested', while THEAGE notes she refused to put a price on criminal infiltration of the Big Build program.
- ABC states Allan called the reforms 'the most far-reaching overhaul since 2012', while THEAGE frames the announcement as a 'belated action' with significant delays.
- THEAGE claims Allan has not meaningfully acknowledged her responsibility for the Big Build corruption scandal, while ABC focuses on her stated 'zero tolerance' position on corruption.
- THEAGE argues that Victoria Police cannot investigate much of the Big Build corruption due to its non-criminal nature, while ABC highlights Allan’s claim that IBAC will work alongside police to investigate criminal behaviour.
Source Articles
Victoria's anti-corruption watchdog to get follow-the-money powers
The new powers will allow IBAC to pursue taxpayer funds through subcontracting arrangements and labour-hire companies.
It would be nice to say better late than never, but premier deserves no prizes for belated action
Jacinta Allan has finally moved to grant the state’s corruption watchdog badly needed powers, but they will not be in place until late next year.
Allan promises follow-the-money powers for IBAC amid Big Build corruption
Premier Jacinta Allan says she is now convinced of the need to boost the reach of the state’s Independent Broad-based Anti-Corruption Commission.