Qld Labor to discipline ex-union boss

The Queensland Labor Party has started disciplinary action against a former union boss accused of billing the building of his luxury home to an unrelated project.

The royal commission into trade union corruption is examining whether former union boss David Hanna paid for work done by tradies on his home at Cornubia, south of Brisbane.

There are allegations the costs were billed to Mirvac's Orion retail development at Springfield shopping centre.

Premier Annastacia Palaszczuk told parliament on Thursday the Queensland Labor Party had started disciplinary proceedings against Mr Hanna.

"And that is the right and correct thing to do," she said.

"My party is acting and my government is acting."

Ms Palaszczuk didn't say what the disciplinary action actually involved.

Comment has been sought from the party.

Key witness and Mirvac employee Mathew McAllum told the royal commission on Wednesday he remembered having a discussion with his boss about the Orion project funding Mr Hanna's home.

"Unfortunately in the building industry it's common practice a lot of times," he told the court.

"It's not out of the norm."

Mr McAllum also revealed he deleted the name of the property owners, Mr Hanna and his wife Jenny, on plans forwarded to tradies.

He denied he was asked to keep Mr Hanna's identity a secret.

Mr Hanna's house was built between 2012 and 2014, while he was secretary of the Builders Labourers Federation (BLF) before he became president of the Construction, Forestry, Mining and Energy Union (CFMEU) when the entities merged.

The house features four king-size bedrooms, four bathrooms, polished concrete flooring, walk-in wardrobes and pantries, a second butler's kitchen, a three-car garage and saltwater pool.

Mr Hanna is expected to give evidence to the royal commission in Brisbane late Thursday or Friday.