The proposed new powers to disrupt a picket would not impact on any lawful industrial protests, but only apply to unlawful action where a court order was being flouted.

The Royal Commission into Trade Union Governance and Corruption will on Tuesday outline the proposals including new laws against the giving or receiving of "corrupting benefits" as part of a package of possible reforms to be flagged in a policy discussion paper.

Counsel assisting the royal commission, Jeremy Stoljar, said existing laws against blackmail, extortion and the payment of secret commissions vary from state to state and are not directed at the type of issues raised in commission hearings, including the payment of alleged bribes to unions by companies.

"[T]he fact that the commission is continuing to see such issues suggest the current laws are not effective or adequate," Mr Stoljar said.

The new discussion paper and the feedback it generates will form the basis of the royal commission's final recommendations to the federal government at the end of this year.

Mr Stoljar said the maximum penalty of $17 million would likely target a corporation found guilty of the most serious offence involving significant payments to a union or unions over a long period of time.

"Why do we say they need to be so high? There needs to be deterrence," he said.

Mr Stoljar said the commission would also consider the need for new legislation allowing a police officer to read out a court order prohibiting a picket, boycott or ban of a building site and dispersing a those involved.

Under the proposal, anyone still present at the site within a specified time, such as 15 minutes, would be guilty of an offence, unless a legitimate and lawful purpose could be demonstrated for being at the premises.

Mr Stoljar said conviction for this offence would be a ground of disqualification from union office.

"Of course, such a provision could have no operation in the context of, or so as to impede or prevent, the conduct of a peaceful and lawful industrial dispute," Mr Stoljar said.

"The proposal contemplates such a provision becoming operational only where a court order has already been made specifically prohibiting the activity and where the court order is being flouted or ignored.

"The purpose of this discussion paper is to generate debate concerning the policy issues canvassed in the paper. [It] isn't articulating any concluded views or concluded recommendations."

The royal commission will also review whether any changes to right or entry permits are needed and the possible regulation of funding for union elections.

"These possible provisions are designed to improve transparency in relation to the funding of elections," Mr Stoljar said. "Union members are entitled to know who is funding which ticket."

Mr Stoljar has previously flagged a proposal to expel union officials from their union if they repeatedly break the law.

Responses to the discussion paper can be made until late August and Commissioner Dyson Heydon will make his final recommendations at the end of the year.