Workplace Relations Minister Tony Burke labelled allegations bikies were acting as union delegates and links between construction projects and organised crime as "abhorrent".
His department will advise him on what action can be taken in response, with more reports into the Construction, Forestry and Maritime Employees Union were expected
Victorian CFMEU boss John Setka quit his role on Friday evening and has described reports as "false accusations" and "malicious attacks", but Mr Burke said more needs to be done to stamp out the problems within the movement.
CFMEU boss John Setka stepped down from his role on Friday. (James Ross/AAP PHOTOS)
The Business Council of Australia has called for a "full, frank and independent" judicial inquiry, adding the CFMEU should not be allowed to take any government contract before a proper investigation into the allegations.
"An inquiry of this nature would have the power to compel documents and witness, which is critical if we are to genuinely get to the bottom of how union officials and criminal organisations have allegedly worked together to profit from government and taxpayer-funded projects," BCA chief executive Bran Black said.
"All Australians suffer when unions undertake this sort of alleged behaviour, drastically pushing up building costs and making it so much harder to buy a home when we are already in the grip of a cost-of-living crisis."
Acting opposition leader Sussan Ley has called for the CFMEU to be deregistered and for Labor to stop accepting donations from the union.
Mr Burke said on Sunday that deregistration would be considered "if it's what needs to be done".
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