Former Labor MP Craig Thomson's jail sentence for misusing union members' funds shows the need for tougher checks on corruption, the federal government says.
Thomson was sentenced in the Melbourne Magistrates Court on Tuesday to 12 months jail for spending more than $24,000 of members' money on prostitutes and personal expenses while national secretary of the Health Services Union (HSU).
Employment Minister Eric Abetz says the matter shows the need for Labor to support the coalition's efforts to stamp out union corruption, including a new Registered Organisations Commission and restoring of the Australian Building and Construction Commission.
The government has also named the HSU in the terms of reference for a royal commission into unions which starts next month.
"They (Labor) have learned nothing from the Craig Thomson affair," Senator Abetz said.
"Clearly they believe it's okay for union members' funds to be spent on prostitutes and living a life of luxury."
Former HSU official Marco Bolano, who Thomson accused in parliament of conspiring against him, said it was not just "one or two bad apples".
"Unfortunately what I've seen in the union movement is this is commonplace," he said outside court following Thomson's sentence.
"I hope the royal commission shines a giant light on this."
Labor frontbencher Michelle Rowland said it was important that the full force of the law be applied in such cases.
"I think that this is a very sorry episode in terms of what happens when you betray people that put their trust in you," she said, adding HSU members had a right be angry about the behaviour.
The HSU's acting national secretary Chris Brown said the union would be pursuing Thomson to recover the misused money, including that dealt with by the Fair Work investigation but not brought to court.
"Today brings to an end a long seven-year wait by the union to have Thomson brought to account for the misuse of union funds," he said.
The House of Representatives privileges committee is still investigating whether Thomson misled parliament with his 2012 statement in which claimed his innocence and railed against the media and his HSU accusers.
HSU whistleblower Kathy Jackson said the court decision was about "justice for all working men and women across the nation".
The Fair Work Commission is still pursuing other matters relating to the HSU, including fraud in the former Victoria No.1 branch and a new investigation into whether Victorian officials broke right of entry and financial reporting rules.
Mr Brown said the HSU's national executive had thoroughly reviewed its governance and financial rules to prevent future problems.
Claiming his innocence outside the court on Tuesday, Thomson was bailed after launching an immediate appeal which will be heard in November.
Nine months of his 12 months sentence is wholly suspended.
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