Prime Minister Malcolm Turnbull, Employment Minister Michaelia Cash and Attorney General George Brandis have vowed to crack down on union corruption following the release of a report into the trade union movement.
In a joint press conference after the release of the Trade Union Royal Commission report from Justice Dyson Heydon, the trio said the government would seek to change legislation to protect union members.
"This report - if it is heeded, if its recommendations are implemented - if that is done then the trade unions will be stronger and the members it represents will have greater confidence in its officials," Mr Turnbull said.
"This report uncovers practices that have long been known to exist."
Mr Turnbull said the release of the report was a "watershed" moment for Opposition Leader, and former Australian Workers' Union boss, Bill Shorten and the Labor and trade union movements.
"This is a real test for Mr Shorten and [deputy Labor leader] Tanya Plibersek and the leaders of the Labor movement. This is their time, this is their chance."
Mr Turnbull and Mr Brandis noted the report was based on testimony, admissions and evidence submitted during the Royal Commission.
"These are not volumes of opinion, these are volumes of findings based on fact," Mr Turnbull said.
Ms Cash announced legislation on registered unions, which has already been rejected three times in the Senate, would be strengthened based on the report's recommendations and reintroduced in the first week of parliament in 2016.
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"This government will take firm and swift action," she said.
"This is a government that is going to ensure the laws are robust and effective to ensure this type of behaviour can't occur."
Ms Cash said the government would also continue to seek the re-establishment of the Australian Building and Construction Commission with "strong powers and strong laws" to monitor union officials and governance in the sector.
Mr Brandis announced the term of the joint Commonwealth and state police Taskforce Heracles, originally set up to assist the Royal Commission in its work had been extended to December 31, 2016.
He said the taskforce would be required to follow up on the new leads contained in Commissioner Heydon's report.
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A new taskforce, led by the federal employment department and including the Australian Competition and Consumer Commission, Australian Securities and Investsments Commission and the tax office, would also look into the report's findings.
Mr Turnbull said the government was intent on bringing about legislative change in relation to the union movement and union officials.
"We are willing to fight an election on this," he said.
"If we can't get this legislation through the senate then it will be a major election issue.
"We will be saying 'we want you to know what your union officials are doing with your employer'. I think many members will say 'I think that sounds like a fair thing', and they will say to Mr Shorten 'are you on our side or on the side of the union bosses?'"
Mr Turnbull said the Royal Commission had cost tax payers $45.9 million.
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