Prime minister, Malcolm Turnbull has said if the senate fails to pass the ABCC and registered organisations legislation, which would allow for higher penalties for union corruption, there will be a double dissolution election.
"The go-slows and obstruction by Labor and the Greens on this key legislation must end," Mr Turnbull said.
"This is an opportunity for the Senate to do its job of legislating rather than filibustering."
The budget has been moved forward to May 3 to allow for the potential double dissolution election.
If there is a double dissolution election it will be on July 2.
The prime minister has announced both houses of parliament will be recalled on April 18 to discuss the Australia Building and Construction Commission legislation.
On the advice of the prime minister, Governor-General Peter Cosgrove has used his constitutional powers to recall both houses of parliament for a three-week sitting from April 18.
Labor and the Greens have been firm in their opposition to the industrial laws, saying the government shouldn't be singling out one industry and that the building commission's powers go well beyond a court.
The government needs six crossbench senators to pass the bills, but months of talks have been unsuccessful in delivering all of their votes.
Independent Nick Xenophon said he would support the ABCC with amendments.
"We should just get on with it," he told reporters in Melbourne.
The latest Newspoll has the coalition ahead of Labor 51-49 per cent on a two-party basis, but Mr Turnbull's net personal approval has crept into negative territory for the first time.
If the Senate passed the ABCC bill and another imposing tougher governance measures on trade unions, there would be no double-dissolution election, Mr Turnbull said.
