Labor should reject CFMEU funds: Morrison

Treasurer Scott Morrison says Labour should remove controversial CFMEU leader John Setka from the role and hand back all of its donations to the party.

According to Treasurer Scott Morrison, there are two things Bill Shorten needs to do in response to the threatening outburst by union leader John Setka earlier this week.

Mr Morrison says the opposition leader needs to demand Mr Setka be removed from his position as CFMEU boss and send back every dollar received in donations from the union.

"That's when you'll know if he's a leader of the status of Bob Hawke or he's at the beck and call of John Setka and his thugs," Mr Morrison told reporters in Sydney on Saturday.