Reports: Royal Commission to investigate unions' finances

THE Abbott Government could soon establish a Royal Commission to look into the dodgy side of union finance.

Reports that the most powerful form of inquiry would be established come after the Coalition promised similar investigations before the election.

That inquiry was promised after revelations surrounding an association established by former prime minister Julia Gillard during her time as a lawyer working for the Australian Worker's Union that was later used as a slush fund.

But the Australian today reported the court action related to that fund meant an inquiry into that specific union was unfeasible.

Instead, a Royal Commission is expected to be established to investigate the finances of all Australian unions.

It comes as the Abbott Government moves a raft of legislation covering the building industry as well as a new Registered Organisations Commission.

That proposal aims to shed more light on the activities of unions, which are not subject to the same transparency measures as business.