Morrison Government backs anti-corruption watchdog move

The Prime Minister has given a clear indication the government could set up a federal anti-corruption watchdog, saying the issue is being worked through "the cabinet process".

Scott Morrison told Question Time the government would take a "calm, considered, mature approach" and consider "the best options."

But he dismissed the idea as "some sort of fringe issue".

The comments came after the government, faced with defeat on the floor of the House on the first day as a minority government, allowed and didn't oppose a non-binding motion calling for a national integrity commission.

It doesn't mean much though - the government isn't forced to act on the motion – and opposes the proposed legislation.

But it did avoid an embarrassing defeat in the House.

Opposition Leader, Bill Shorten, called it a "very, very significant day", but warned it shouldn't be "an excuse to vote for it and hope that it never comes back".

Greens deputy leader Adam Bandt said the government could no longer "deny the inevitable", saying it could be done by Christmas.

However, Attorney-General Christian Porter urged caution, saying the issue needs "sober and cautious consideration".

He said the Bill before Parliament, introduced by Independent Cathy McGowan and backed by the Opposition, Greens, and crossbench, meant any public servant would be "declared corrupt, for the most minor matter".

"In an area like this, an abundance of caution is absolutely necessary," Mr Porter said.

Most alarming, he said, was the bill was retrospective, and hundreds of Federal Police misconduct breaches, now considered "employment matters", could become corruption offences.

He even suggested ABC political editor Andrew Probyn could be found guilty of corruption, because of an earlier integrity complaint by the government about his reporting.

Mr Shorten, his deputy, Tanya Plibersek, and Independent, Bob Katter, urged a bi-partisan approach, to get the model right.

Ms McGowan challenged the Attorney-General to work with the Parliament, asking what he would do to "make this legislation better".

Fellow independent, and co-sponsor of the bill, Rebekha Sharkie, demanded Mr Porter "show some leadership on this".

More than anything, it showed the government's weakened position, and how vulnerable it is.

If it had lost the vote today, it would have been left with a perception that it had lost control of the House.

The Prime Minister said the government had been "working on the matters for some months" and was working through the Cabinet process.

He said any measure would be "prudent and responsible" and wouldn't vilify public servants.

The Opposition’s proposals, he said, were "half-baked", and lashed out at Labor's record.

"I'm not going to be lectured on integrity by the Labor Party," he said.

"The Labor Party when it comes to integrity? Give me a break. Give me a break."

Mr Morrison referred to corruption findings against former NSW Labor MPs, Eddie Obeid, and Ian Macdonald, among others.