By Andrew Brown and Melissa Meehan in Canberra

Appointing an administrator won’t be enough to change the CFMEU, an independent MP has warned, while calling for a new watchdog to oversee the embattled union.

The CFMEU’s construction division has been accused of taking kickbacks, being linked to organised crime and employing standover tactics on worksites, in a series of Nine newspaper reports.

While the Fair Work Commission plans to appoint an administrator to take control of the union, independent MP Zoe Daniel isn’t confident it will be able to address all the issues.

While the federal opposition is calling on the government to reinstate the Australian Building and Construction Commission (ABCC) to police the sector, Ms Daniel says a different body is needed.

“I don”t think (the ABCC) was particularly effective,” she told ABC’s Insiders program on Sunday.

“The ABCC specifically has been so politicised that it’s been impossible for it to be effective. That said, I’m not convinced that an administrator will be enough,”

“It probably needs to be coupled with … maybe a state, federal police task force, to look at those criminal allegations, dismantle what’s there.”

Shadow treasurer Angus Taylor says Prime Minister Anthony Albanese has been half-hearted in his approach by not deregistering the CFMEU.

“This organisation is clearly rotten to the core. It is a cartel being enforced by criminal underworld figures and others like bikies and every Australian is paying the tax for this cartel,” he told Sky News.

“(The prime minister) should deregister the CFMEU, allow other organisations to step up and compete, to represent workers.”

But Assistant Energy Minister Jenny McAllister says the approach to appoint an administrator is the right one.

“De-registration would allow this same group of people to continue the same things that they are presently doing without regulatory oversight,” she said.

“It’s hard to see how this helps the situation.”

At the request of the Victorian government, the national executive of the Labor Party has banned donations from the CFMEU’s construction division and suspended the division from the Victorian Labor Party.

Victorian Premier Jacinta Allen promised to tear the “rotten culture” of the CFMEU “out by its roots”, announcing a review into the construction industry.

Former acting commissioner of the Victorian Public Sector Commissioner Greg Wilson will head up the review, with an interim report to be handed down in six weeks.

“We will tear this rotten culture out by its roots – making sure our construction industry meets the expectations of the Victorian people,” Ms Allan said.

“Unions are meant to keep people safe – we are making sure that people coming forward with critical information about conduct on worksites have the complaints processes and protections they deserve.”

Mr Wilson’s review is expected to recommend ways to stamp out unlawful conduct on building sites, including those included in Victoria’s Big Build.

The state government also announced the scope of the Independent Construction Sector Review.

It will also consider how government can establish clear processes and protections for whistleblowers and complainants with allegations of criminal or unlawful practices, coercion, bullying or intimidatory conduct.

The Victorian government has also written to the police commissioner and the Independent Broad-based Anti-Corruption Commission (IBAC) referring the allegations for investigation.

Earlier this month controversial union boss John Setka quit the CFMEU’s top job citing “malicious attacks” and “ongoing false allegations” in response to the media reports.

He was due to retire later in 2024 after 12 years as the head of the CFMEU in Victoria.