The federal government intervened in August 2024, following claims of bikie and organised crime figures infiltrating the scandal-riddled union, in addition to other serious criminal activity.
Controversial leader John Setka claimed the allegations against the union were false, but said he would step down to stop the intense media coverage.
Former CFMEU officials challenged the government's legislation that removed the union's leadership and placed it under the control of administrator Mark Irving KC.
The plaintiffs, sacked CFMEU officials Michael Ravbar and William Lowth, argued the law was invalid on four grounds, including that it breached their implied freedom of political communication.
The full bench of the High Court found all four arguments were unfounded.
Victoria Police last September said Setka wouldn't face criminal charges over visits to government work sites, after it looked into 20 allegations of "potential criminal activity".
Criminal infiltration and corruption of the construction industry was revealed in Mr Irving's first report as remaining "an area in which much work still needs to be done".
Previous workplace relations minister Murray Watt credited Mr Irving and his team for uncovering the "unacceptable conduct".
He later referred further allegations, aired by 60 Minutes, to police for investigation.
The government labelled vision of a woman being bashed by a bikie-linked health and safety representative as "horrifying".
CFMEU national secretary Zach Smith told staff in May he would step away from his role, but would continue to lead the Victorian branch.
A damning interim report by lawyer Geoffrey Watson SC said "lawlessness" in the union's construction arm was widespread.
Further investigations to identify instances when Victorian branch officials had engaged in or been subject to threatening, violent or abusive conduct were among the seven recommendations he made.
All were accepted by the administrator.
The government's legislation allows the CFMEU to remain in administration for up to five years and officials that frustrate or obstruct the process face hefty penalties.
Industrial Relations Minister Amanda Rishworth said the government would not tolerate criminal behaviour, corruption or violence in the construction industry.
"We need to focus on shifting the culture in the construction industry and ensure the bad actors we have seen infiltrating this sector are kept out," she said in a statement.
"Construction workers deserve a union free from criminality, corruption and violence.
"The administrator and his team can now move forward with confidence and continue their essential work in cleaning up the Construction and General Division of the CFMEU."
Master Builders Australia chief executive Denita Wawn said the ruling gave the construction industry and the administrator the certainty they needed to clean up the union.
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