Labor has moved to suspend donations from the NSW, Victorian, South Australia and Tasmanian branches of the CFMEU's construction division after the union was placed under administration.
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The ALP national executive unanimously agreed to suspend affiliation from the branches following a meeting held to Labor's future ties to the embattled union, following serious allegations of organised crime and links to bikie gangs.
ALP national secretary Paul Erikson said the suspension will remain in place until further notice.
"The number one job of any union and its officials is to look after its members. The reported behaviour is the complete opposite of this," Mr Erikson said in a statement.
"The Labor Party will not levy or accept any affiliation fees from these branches of the CFMEU for the period of the suspension, and no political donations from these branches will be accepted by the ALP or any of its state and territory branches."
The party said it will consider extending the suspension of affiliation to other state and territory branches "should they be placed under administration."
Prime Minister Anthony Albanese denied the federal government had delayed action after state premiers intervened to suspend affiliations with state-registered union branches earlier this week.
"Where we see corrupt conduct, we want it stamped out. And that's why we've taken this direct action very swiftly," he told reporters on Thursday.
Workplace Relations Minister Tony Burke on Wednesday announced the federal government would assist the Fair Work Commission to install an independent administrator to handle the construction division of the union.
He warned that the government would introduce legislation if the CMFEU challenged proceedings.
"The government will ensure the regulator has all the powers it needs to appoint administrators, there can be no place for criminality or corruption in any part of the construction industry," Mr Burke said.