NSW wants CFMEU construction arm suspended from ALP

They've asked the state branch to take the "necessary steps" to immediately suspend the CFMEU Construction and General Division's affiliation with the party and stop any donations or affiliation fees.

"The revelations that have come to light this morning are appalling," Mr Minns and Mr Mookhey said in a statement on Wednesday.

"There is absolutely no tolerance for criminal or corrupt behaviour in the building industry, in unions or anywhere for that matter.

"It is clear the CFMEU Construction and General Division will not and cannot clean itself up."

Nine newspapers reported on Wednesday that a police camera hidden in the ceiling of the CFMEU's Sydney office allegedly caught a construction union boss accepting a bundle of cash in 2020.

It's alleged the money was a kickback from a building company representative in return for union backing of a project.

Mr Minns and Mr Mookhey said the NSW Labor government was working with the federal Labor government on a "co-ordinated approach" to the furore surrounding the CFMEU since corruption allegations began circling the Victorian branch on Friday.

"We will also ask the commonwealth government to review enterprise bargaining agreements in NSW which the CFMEU is party to," Mr Minns and Mr Mookhey said.

"Further, the NSW Construction Compliance Unit will work with federal regulatory bodies and act on any allegations.

"We must take the necessary action to protect honest and hardworking construction workers and union members."

The NSW government said it would provide an update on other actions it intended to take later on Wednesday.

Mr Mookhey hinted that "other actions" could include placing the NSW entity into administration, as happened in Victoria earlier this week.

"It's pretty evident that we will be taking action in NSW to remove the NSW leadership," he told Sydney radio 2GB.

The treasurer also confirmed "no money" will be flowing from the CFMEU to the Labor Party in NSW.

He agreed it could get messy before adding the government was ready for a fight "if that's what it takes".

Mr Mookhey also confirmed the federal government had been heavily engaged in developments around the CFMEU, and noted that Prime Minister Anthony Albanese had suspended Victorian union boss John Setka from the ALP when he became opposition leader in 2019.

"The prime minister is right to say that behaviour is 100 per cent unacceptable," he added.

The construction arm of the Victorian branch of the CFMEU is under a cloud following claims of links to bikie gang members and criminal groups.

The Victorian premier earlier this week called for it to be suspended from the state ALP as the CFMEU national body placed the state branch into administration.