Debating the Reality Behind the Coalition’s 'CFMEU Tax' Claim

The debate over Labor’s bill to appoint administrators to the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) has reignited claims from the Coalition regarding the so-called "CFMEU tax." Senior opposition members, including Peter Dutton and Michaelia Cash, assert that the union is responsible for a 30% increase in construction costs, a figure they argue contributes to major project blowouts and worsens housing affordability.

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However, the foundation of this claim appears to be tenuous. The 30% figure is derived from a report commissioned by the Master Builders Association, focusing on Queensland pay deals. The report outlines a worst-case scenario, suggesting that "maximum application" of union clauses could lead to a 33% cost increase. Yet, this scenario is based on unspecified assumptions and lacks transparency, with no concrete examples provided to substantiate the claim.

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Critics, including CFMEU representatives, have dismissed the 30% figure as misleading. They argue that the union’s agreements ensure skilled workers complete projects efficiently, ultimately saving costs. Moreover, the report’s suggestion that a significant portion of the supposed cost increase could end up as builder profits adds another layer of complexity.

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In sum, while the "CFMEU tax" is a compelling political soundbite, its factual basis remains unverified and contentious. The reality behind the claim is far from clear-cut, leaving room for significant debate.

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Read the full article here https://www.theguardian.com/australia-news/article/2024/aug/27/coalition-says-cfmeu-blowing-out-construction-costs-is-that-really-true