Reviving a construction sector watchdog to address potential illegality in the CFMEU would do little to fix the problems at the embattled union, the prime minister says.

Opposition Leader Peter Dutton says laws to reinstate the Australian Building and Construction Commission will be brought to parliament when it next meets in August.

The CFMEU’s construction division has been accused of links with organised crime, taking kickbacks, and employing standover tactics on worksites.

Federal Labor cut ties with the union on Thursday.

The construction watchdog was reintroduced in 2016 by the coalition but then abolished by Labor in February 2023, with its powers transferred to the Fair Work Ombudsman.

While Mr Dutton said a revitalised watchdog would stamp out criminal behaviour, Prime Minister Anthony Albanese said it would not be effective.

Mr Albanese said the regulator failed to address issues to do with controversial CFMEU Victorian branch head John Setka, who resigned following the allegations against the union.

“The ABCC was put in place by the coalition, and during the entire time they were in government, John Setka increased his influence, not just in Victoria, but took over the South Australian branch,” he told reporters in Cairns on Friday.

“Overwhelmingly, what unions do is they represent their members to improve wages and conditions each and every day. That should be what they do, and that’s why the elements, like John Setka have no place.”

Mr Dutton said the construction watchdog needed to be brought back to ensure standards were kept in the industry.

“We hope the government can support it, because they abolished it at the request of the CFMEU,” he told Nine’s Today program on Friday.

“The ABCC charged dozens and dozens of CFMEU officials over the last eight years.”

The opposition also flagged it would bring the commission back if it wins government at the next federal election.

Moves are under way for an administrator to be appointed to oversee the CFMEU in light of the latest allegations.

Labor has indefinitely suspending affiliation between the construction division and the NSW, Victorian, South Australian and Tasmanian branches of the party.

It will not accept political donations or fees from the division in line with announcements from some state counterparts.

Mr Albanese said Labor had acted decisively in dealing with the allegations about the union.

“We will put administrators in because, we will ensure that culture changes, and we’ll make sure that anyone with any (criminal) links is removed from the union movement,” he said.

But the union’s construction arm in NSW said it was coming under an “unprecedented attack”.

“External forces attacking the CFMEU have one agenda only: to reduce your collective power through the Union to win better wages and conditions,” the division said on social media.

“The governments, state and federal, the big end of town, and the ACTU want you to work for less and in unsafe conditions.”

Meanwhile, Nationals Senator Susan McDonald urged people who had suffered at the hands of the CFMEU to speak out.

“I’ve spoken privately to individual workers and company heads who outlined the intimidatory tactics and outrageous demands by union heavies but they didn’t want to go public in case they missed out on future work,” the Queensland senator said.

Independent MP Dai Le said she had also heard of standover tactics being used in her Western Sydney community, with people from non-English speaking background being forced to sign up and become members. 

“There’s a lot of threats that I have heard of in the construction industry that happens out here in south-western Sydney,” she told ABC TV.

“They were too scared to raise it because they said there were obviously people who were a part of the colourful bikie gangs.”

By Andrew Brown and Dominic Giannini in Canberra