Victoria's anti-corruption watchdog to get follow-the-money powers

IBAC is expected to receive stronger powers to pursue taxpayer funds. (ABC News)

The Victorian government has announced the state's anti-corruption watchdog will receive follow-the-money powers.

The change will allow IBAC to pursue taxpayer funds through subcontracting arrangements and labour-hire companies.

Victorian Premier Jacinta Allan has announced follow-the-money powers for the state's anti-corruption watchdog.

The change will allow the Independent Broad-based Anti-corruption Commission (IBAC) to pursue taxpayer funds through subcontracting arrangements and labour-hire companies, such as those on construction sites.

IBAC had itself called for the strengthened powers, as had the parliament's integrity and oversight committee.

"[These are] the most far-reaching overhaul of IBAC's powers since it was established in 2012," Ms Allan said at a press conference on Monday afternoon.

"It will see IBAC as a fit-for-purpose agency as part of an integrity system here in Victoria."

Ms Allan has repeatedly battled scrutiny over Victoria's Big Build program, which has been infiltrated by bikies and dogged by corruption.

Integrity expert Geoffrey Watson's report into the CFMEU estimated that $15 billion may have been lost to bad actors on taxpayer-funded construction sites, a figure that Ms Allan has disputed as untested.

Jacinta Allan says the overhauls are the most extensive since IBAC was established. (ABC News)

The government on Monday gave "in principle support" for the change, as well as an expanded definition of corrupt conduct.

"Let me be clear, I want the follow-the-money investigative powers to be retrospective," Ms Allan said.

"IBAC should be able to examine recent allegations and also work alongside Victoria Police to ensure all criminal behaviour is investigated."

Ms Allan said she had always maintained a "zero tolerance" position to criminal behaviours in the workplace.

IBAC would also be able to issue specialised warrants to gain access to more records.

Geoffrey Watson's integrity report into the CFMEU estimated that $15 billion may have been lost to bad actors on taxpayer funded construction sites. (AAP: Joel Carrett)

Opposition Leader Jess Wilson said if Labor was serious about implementing the changes they would do it straight away.

"Because Jacinta Allan is facing mounting public outrage she has announced reforms that she has no intention of implementing before Victorians vote this year," she said in a social media post.

"She wants the headline today and the investigation after the election."

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