CFMEU training arm cut from government funding after audit

A CFMEU training organisation that received millions of dollars in government grants over the past five years has been cut off from the scheme.

The state government put an end to the funding to the controversial union’s training arm in the same year it conducted what it said was a routine “transactional compliance audit” into the organisation, which offers educational short courses for construction industry workers.

When asked about its decision by this masthead, a government spokesman insisted it did not identify “issues of concern” with CFMEU Education and Training, saying the government regularly reviewed the Skills First funding program.

It is the first time the organisation has not received this funding since at least 2021.

Last year’s audit came about in the same financial year in which the organisation’s manager Steven Deer was arrested over allegations he had stolen from the CFMEU body.

The revelation has prompted the opposition to urge the government to come clean on the findings of the audit and ensure no taxpayer funds were misappropriated.

CFMEU Education and Training is a significant arm of the union that offers specialist training in areas such as asbestos removal and traffic management.

It came under scrutiny in November after Taskforce Hawk, Victoria Police’s specialist unit for construction industry corruption, arrested Deer. He was charged with 21 offences involving allegedly fraudulent invoices dating from June 2024 through to May 2025. The matter remains before the courts.

Responding to written questions about whether the government was continuing to provide funding following these revelations, the Allan government told a parliamentary committee it had not offered a contract to subsidise any training places with CFMEU Education and Training this year.

“CFMEU Education & Training was subject to a business process and transactional compliance audit as part of the Department’s annual planned audit program for this financial year,” the government said.

“The Department has not offered CFMEU Education and Training a 2026 contract to deliver subsidised Skills First training.

“No new students will be enrolled in subsidised Skills First training at CFMEU Education and Training in 2026.”

Skills First is a Victorian government initiative that subsidises educational courses by paying training organisations directly.

When contacted by this masthead, the government said the audit of CFMEU Education and Training did not identify any “issues of concern” but would not elaborate on the contents of the audit or its findings. They said the program was reviewed annually to prioritise investment in key industries.

“Skills First delivers high-quality training, so Victorians can get the skills they need for the jobs they want,” a government spokesperson said.

“All Skills First training providers are subject to rigorous audits, reviews and compliance requirements.”

Previous compliance audits, publicly available on the union’s site, show it had a contract with Skills First as far back as 2021.

From July 2024 to May 2025, the Department of Jobs, Skills, Industry and Regions paid the organisation $1.4 million through the program. In 2023-24, the government paid more than $1.45 million, and more than $1 million in 2022-23.

The department has had a relationship with the organisation since at least 2010.

Registered training organisations have become a key source of revenue for unions, particularly when membership numbers decline or flat-line. They can be particularly lucrative when the training they provide can be subsidised by government initiatives designed to fix skills shortages.

In 2024-25, the program provided $840 million in grants across the entire Skills First program.

Opposition jobs and skills spokeswoman Bridget Vallence said the department’s compliance audit must have been damning for the government to cut off funding.

“With the government at pains to say no new students will be enrolled in government subsidised training at the CFMEU, something seriously wrong has occurred,” she said.

“The Allan Labor government must come clean and reveal the audit findings.”

The CFMEU did not respond to a request for comment.

This week, the senior barrister appointed to clean up the CFMEU, Mark Irving, quit and respected union boss Michael Crosby agreed to step into Irving’s national role.

Taskforce Hawk was established in July last year, following the Building Bad investigation into the CFMEU by this masthead, The Australian Financial Review and 60 Minutes, to target criminal behaviour linked to the construction industry.

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