The prime minister says the opposition leader would have spent time behind bars if new laws passed by the senate last night had been in effect when Bill Shorten was a union leader.
He has reignited his attack on Mr Shorten’s trade union past after claiming the legislative win without Labor’s support.
“Bill Shorten has been defending tooth and nail, corruption and secrecy, defending big unions and union officials doing dodgy deals with employers at the expense of the workers,” the prime minister told reporters in Canberra.
“Like the puppet that he is, he has gone in there, sending his senators there to vote against legislation which does no more than require employers and unions to act honestly.”
Labor demands apology for "grubby" attack
Shadow Treasurer Chris Bowen has slammed the comments as unbecoming and called for the prime minister to apologise.
“This was a desperate, shrill and grubby attack,” he told reporters in Canberra.
The bill was passed in the upper house with help from the senate crossbench.
It makes it a criminal offence to allow payments between employers and unions that do not benefit employees but rather encourage union officials to act improperly.
“Employers and unions who are negotiating enterprise agreements must now disclose to the relevant workers, prior to voting on the agreement, any benefits that are being exchanged between the employer and the union,” Employment Minister Michaelia Cash told reporters in Canberra.
“If you're doing the right thing, you should be able to tell the workers exactly what you are doing.”
Labor believes the legislation is flawed.
"This bill subjects people to serious penalties for conduct that is not corrupt, dishonest or improper," Labor senator Doug Cameron said.
"Nowhere else in the corporate and professional world does this apply,” he said.
The legislation follows a recommendation from the Heydon Royal Commission into union corruption where Mr Shorten was required to give evidence about his time as national secretary of the Australian Workers’ Union.
There were no adverse findings against him.