Construction union bosses who attempt to frustrate a forced takeover of the CFMEU risk heavy fines or jail time, but there are calls for even harsher penalties.
Union officials who hinder external administrators at the CFMEU could cop almost $940,000 in fines or two years behind bars.
A civil penalty of $188,000 would apply for failing to comply with the administrator, while union branches found to frustrate the process would face an almost $4.7 million fine.
Workplace Minister Murray Watt introduced the laws to parliament on Monday following allegations of criminal activity within the CFMEU.
The laws would allow him to force an administrator on the construction and general divisions of the CFMEU if deemed in the public interest.
The administrator would have the power to manage and operate the division and its properties and take all necessary actions to manage its affairs.
"There is no place for criminality or corruption in the construction industry and bullying, thuggery and intimidation is unacceptable in any workplace," Senator Watt told parliament.
He rejected calls to have the union deregistered, saying it would allow the CFMEU to continue to operate, outside the bounds of oversight or regulation applied to registered organisations.
The opposition and business groups have raised concerns about the bill.
The forced takeover powers would lapse after three years and the coalition said the laws lacked sufficient transparency and accountability measures.
Union officials were given too much wriggle room through "reasonable excuse" provisions, opposition spokeswoman Michaelia Cash said.
"I've seen the legislation and you can currently drive a truck through it," she told parliament.
Business groups want the crackdown to go further, calling for people with criminal record or workplace breaches to be banned from union positions.
The coalition and Greens are pushing for an inquiry into the bill.
The opposition wants a separate inquiry into government-funded construction sites aligned with the CFMEU.
CFMEU national secretary Zach Smith tore strips off the Labor laws, saying they undermined fairness and the legal process and stripped workers of their rights.
The union had already stood people down over criminal allegations and brought in an independent administrator, he said.
Michael Greenfield, the second most powerful person at the CFMEU in NSW, stepped down effective immediately on Monday.
His father Darren Greenfield remains as state secretary.
The men have been charged with receiving bribes from an employer in return for getting work on union sites.
Both deny the allegations.
