Australian unions have pocketed more than half a billion dollars from worker entitlement funds, training schemes, and industry super payments over the past two decades, a new report has revealed, fuelling concerns that money meant for workers is instead being funnelled into political campaigns.
An analysis by the Menzies Research Centre claims unions have amassed $528.7 million through what it describes as a “network of political slush funds,” designed to enrich union leadership and bankroll political allies.
“Australia’s big unions are now run like corporations,” said David Hughes, Executive Director of the Menzies Research Centre.
“Despite declining union membership, our biggest unions have been able to grow exponentially through secret deals with superannuation funds and worker entitlement funds.”
Union membership has plummeted from over 50% of the workforce in 1976 to just 13% today, and an even lower 7.9% in the private sector. Yet, the Menzies report, Unions Inc: The corporatisation of the Australian union movement, suggests that union power and wealth have not just survived the decline but thrived, shifting to alternative revenue streams far removed from traditional membership dues.
According to the report, Australia’s largest unions now control more than $1.8 billion in assets and generate over $800 million in annual income. This financial architecture, Hughes said, “operates with very little scrutiny and transparency,” ensuring a steady flow of funds from businesses and workers into union coffers.
The report highlights a pattern of payments overseen by union officials and Labor-aligned appointees who dominate the boards of worker entitlement funds, super funds, and training organisations. In the past financial year alone, unions reportedly received $40.3 million from worker entitlement funds, $7.76 million from industry super funds, and $8.87 million from training bodies.
These funds, according to the Menzies Research Centre, are then strategically deployed for political campaigning. In the past three federal election years, unions spent an estimated $98 million on campaigning activities, including $40 million in direct transfers to the Australian Labor Party (ALP).
“The interconnected web is designed to ultimately enrich union bosses and fund political causes,” Hughes said.
“Without reform, corporate unionism will continue to grow unchecked, and the interests of workers will fall further behind the financial ambitions of those who claim to represent them.”
The report calls for stronger governance standards across worker entitlement and superannuation funds to better protect workers’ hard-earned money. It recommends measures aimed at boosting transparency, reducing conflicts of interest, and restoring public trust in these financial institutions.
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