Prime Minister Tony Abbott has refused to comment on former Health Services Union boss Michael Williamson's admission of fraud but says guilty officials should face the full force of the law.
Mr Williamson faces jail after admitting on Tuesday that he defrauded the union of almost $1 million, which he spent on private school fees, mortgage payments and clothes.
Mr Abbott would not comment on the matter while it was still before the courts.
"If there is a fraud charge, that attracts penalties under the ordinary criminal law," the prime minister said.
"But in terms of breach of the governance rules, there should be the same penalties for dodgy union officials as there are for dodgy company officials."
Mr Abbott is championing legislation to bring the penalties imposed on the representatives of registered organisations such as unions in line with those for corporations.
Commit the same crime, face the same punishment, Mr Abbott has said in the past.
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