Victoria passes laws to empower corruption watchdog

Victoria's corruption watchdog will be empowered to crack down on so-called "grey corruption" under legislation passed on the final sitting day of the current parliament.

The laws grant the Independent Broad-based Anti-corruption Commission (IBAC) greater powers, including the ability to "follow the dollar" and investigate non-government entities, such as subcontractors, who have benefited from public funding.

New powers for IBAC

Premier Ben Carroll vowed to bring some of the changes forward in one of his first acts as premier in July.

"I'll be very proud as premier to get this through," he said of the bill on Thursday.

The legislation also broadens the definition of "corrupt conduct" so it is no longer tied to a criminal offence but can include "a serious disciplinary matter".

This means it can investigate so-called "grey corruption" — practices like pork-barrelling and cronyism that are against the public interest but are not strictly illegal.

Reaction from Greens

Green leader Ellen Sandell said the amendments served as a legacy for late Greens MP Tim Read, who championed the reforms during his time in parliament.

"We wish he were here to see these laws pass today but we know how proud he would be of the changes the Greens have made today to strengthen our anti-corruption watchdog," Ms Sandell said in a statement.

The Greens said its negotiations would make it easier for IBAC to decide to hold public examinations without needing to justify "exceptional circumstances".

A second tranche of reforms — including those related to IBAC's police oversight role — will be dealt with next year.