Victoria’s IBAC to gain follow-the-money powers amid Big Build corruption scrutiny
Consensus Summary
Victoria’s government has announced plans to grant the Independent Broad-Based Anti-Corruption Commission (IBAC) follow-the-money powers to track taxpayer funds through subcontracting and labour-hire firms, particularly on the state’s $100 billion Big Build infrastructure projects. The reforms, described as the most significant overhaul since IBAC’s 2012 establishment, also include expanding the definition of corrupt conduct to investigate non-criminal misconduct and potentially increasing public hearings. Premier Jacinta Allan framed the changes as necessary to address corruption allegations, including a $15 billion estimate from Geoffrey Watson’s 2025 CFMEU report, though she disputed the figure as untested. While integrity experts and opposition parties welcomed the move, critics like the Greens and Coalition argue the reforms are delayed until after the November 2026 election and lack concrete commitments. A reference group will finalize legislation by May 2027, with changes expected by the end of next year.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Premier Jacinta Allan announced IBAC will receive follow-the-money powers to trace taxpayer funds through subcontracting and labour-hire arrangements, including on Big Build construction sites.
- The proposed reforms include a broader definition of corrupt conduct to allow investigations beyond criminal-level misconduct, as recommended by Victoria’s integrity and oversight committee.
- The government’s response to the December 2025 integrity and oversight committee report supported 21 of 31 recommendations for IBAC reform.
- A reference group of integrity experts (including IBAC, Ombudsman, Integrity Oversight Victoria, and Victoria Police) will advise on the legislation, with a report due by May 2027.
- The Greens introduced legislation in 2026 to give IBAC follow-the-money powers and broader public hearing rights, but the government has not brought it to debate.
- Geoffrey Watson, SC’s 2025 report into the CFMEU estimated $15 billion in potential losses to corruption on Big Build projects, a figure disputed by Premier Allan as untested.
- The reforms will not be legislated before the November 2026 state election, with changes expected by the end of 2027.
Points of Difference
Details reported by only one source:
- IBAC’s current definition of corrupt conduct requires evidence of criminal-level misconduct before investigations can begin, a flaw criticized by former commissioners Stephen O’Bryan, Robert Redlich, and Victoria Elliott.
- The Greens’ MP Tim Read accused the government of using ‘weasel words’ in its response to expanding IBAC’s definition of corrupt conduct, stating it only ‘considered’ legislative options without commitment.
- The Coalition opposition dismissed the reforms as damage control, calling for immediate follow-the-money powers and a royal commission into Big Build corruption.
- IBAC rarely holds public hearings, unlike NSW’s ICAC, which has led to high-profile resignations (e.g., Barry O’Farrell, Gladys Berejiklian) after public examinations.
- The government’s formal response to the integrity committee included ‘careful consideration’ of expanding public hearings while safeguarding witness welfare.
- Eleven of Victoria’s biggest infrastructure projects (including Suburban Rail Loop and North East Link) have been affected by corruption allegations.
- Transparency International Australia’s Clancy Moore warned that a royal commission is still needed to address systemic corruption in Victoria’s construction sector.
- IBAC questioned former Premier Daniel Andrews behind closed doors in December 2021 regarding four anti-corruption investigations.
- Premier Allan stated the follow-the-money powers would be ‘retrospective,’ allowing IBAC to examine recent allegations and collaborate with Victoria Police on criminal investigations.
- Allan reiterated her ‘zero tolerance’ stance on criminal behavior in the workplace during the announcement.
Contradictions
Conflicting information between sources:
- TheAge reports the government supported 21 of 31 recommendations from the integrity committee, while ABC does not mention this specific number or breakdown.
- TheAge includes detailed skepticism from Greens MP Tim Read about the government’s ‘weasel words’ on expanding corrupt conduct definitions, which ABC does not reference.
- TheAge highlights that IBAC’s current definition of corrupt conduct requires evidence of criminal-level misconduct, a point not mentioned in ABC’s coverage.
- TheAge notes the Coalition’s explicit call for a royal commission into Big Build corruption, which ABC does not address.
Source Articles
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.
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.