The commission heard the ACT Construction, Forestry, Mining and Energy Union then collected almost $1.2 million off the back of those agreements – from compulsory training, charity and income protection clauses – in 2013 and 2014.

Senior counsel assisting the commissionSarah McNaughtonoutlined an alleged complex structure of interlocking entities controlled by senior staff of the ACT CFMEU and The Tradies Group at the hearing in Sydney.

"The commission will be inquiring into questions involving conflicts of interest, lack of transparency and possible third line forcing," Ms McNaughton said.

ACT CFMEU secretary Dean Hall said the arrangements had not been devised to hide the union's stranglehold on training or the money it took from the charity fund or the income protection trust.

The agreements stated training, including the basic "white card" site entry qualification, must be provided by Construction, Employment, Training Welfare Ltd as trustee for Creative Safety Initiatives Trust [CETW/CSI].

Ms McNaughton said CETW/CSI had fingers in many pies.

"As a result of clauses in the EBA CETW/CSI receives money for training, management fees [of $200,000 a year] from Construction Charitable Works Pty Ltd and promoters fees [of $200,000 a year] from the JDT [income protection] trust scheme," she said.

"CETW/CSI distributes its annual surplus to the income default beneficiary; effectively the CFMEU ACT."

The Canberra branch received more than $390,000 in 2013 and more than $790,000 in 2014. The money went into general revenue.

Under questioning Mr Hall said some general revenue funds were used for donations to the Labor Party and the Greens.

The CFMEU's last financial report listed unspecified outgoing donations of $117,606 in 2013, when it recorded a loss of $182,552, and $5605 in 2014, when it recorded a profit of $36,178.

"Workers get a better deal under a Labor government," Mr Hall said.

Ms McNaughton said the creation of multiple entities, including trusts, coupled with the failure of the EBAs to indicate the union would profit was thought provoking.

"The question arises as to whether the setting up of complex structures in relation to training, contribution to a charity and income protection was done deliberately to hide the CFMEU's involvement," she said.

Until March last year CETW/CSI had been run by the three most senior members of the ACT CFMEU branch: secretary Mr Hall; president Jason Jennings and assistant secretary Jason O'Mara.

On March 3, 2014, less than a month after the announcement of the unions royal commission, Mr Jennings and Mr O'Mara were replaced by Stephen Brennan, the chief financial officer of The Tradies Group and Robert Docker, the group's chief executive.

Mr Brennan is the secretary of both the Woden Tradesman's Union Club and the Canberra Tradesman's Union Club. The hearing was told both clubs were controlled by the CFMEU.

Mr Brennan signed off on the $32,267 redundancy payment to former CFMEU organiser Halafihi "Fihi" Kivalu in an email to Mr Hall on November 10 last year.

Mr Kivalu, who told the commission he had both resigned and been made redundant, is awaiting trial on blackmail charges. He has pleaded not guilty.

Mr Hall has been a director of both clubs, as well as their jointly operated community fund, the Canberra Tradesman's Union Club Community Fund [CTUCCF], since 2007.

CTUCCF is the ultimate holding company of Construction Charitable Works Pty Ltd [CCW], which receives one dollar a week from each of the ACT CFMEU's 2000-plus financial members [about $100,000 a year] under the enterprise agreements.

CCW paid CETW/CSI more than $200,000 a year in management fees in 2013 and 2014.

Ms McNaughton put it to Mr Hall the replacement of the CETW directors was made when the scope of the commission's powers became known.

Mr Hall said the decision had been made at least a year before: "It was tardiness on my part [that it had not been done sooner]," he said.

The appointments breached CETW's constitution which said board members must be elected CFMEU officials.

Mr Hall has sought legal advice on this.