Katter's Australia Party (KAP) Queensland Leader Robbie Katter.
The head of Queensland's corruption watchdog says the case of the Labor government removing resources from Katter's Australia Party highlights the need for an independent body to allocate funding to political parties
Premier Annastacia Palaszczuk stripped the Queensland KAP of extra parliamentary staff after the party's MPs refused to denounce federal Senator Fraser Anning for using the Nazi-associated phrase "final solution" during his first parliamentary speech.
In response, KAP Qld leader Robbie Katter referred the premier to the Crime and Corruption Commission claiming she had broken the law by using the extra resources as leverage in urging the KAP to renounce the senator's speech.
He also referred Opposition Leader Deb Frecklington, Deputy Opposition Leader Tim Mander, LNP member for Warrego Ann Leahy and LNP Glasshouse MP Andrew Powell after they called for the premier to withdraw the funding.
The CCC found the LNP MPs had no case to answer, however it did find the premier may have technically breached section 60 of the criminal code which makes it an offence to attempt to bribe, extort or inappropriately influence a Member of Parliament.
But it said there was little chance of any action brought on that basis succeeding, and also little public interest in pursuing the matter further.
CCC head Alan MacSporran said the case instead suggested there was a need to set up an independent body to allocate party resources.
"To make sure that these things are addressed objectively and sensibly without regard to side issues that should not impinge on important questions," Mr MacSporran said on Thursday.
"If you're interfering in resource allocation it is a very disappointing outcome."
Ms Palaszczuk said she would be happy to look at the CCC's recommendations, but defended her actions.
"Those (resource allocation) processes have been in place for decades, so if it's time to have a review, more than happy to have a look at that," the premier said.
"In the heat of question time people make comments and that's the argy bargy of parliament."
The extra resources were initially allocated to the KAP during the last term of government when Labor relied on its two votes in the minority government at the time.
Mr Katter said the CCC's findings were a vindication of his party's anger at having those resources taken away.
"It's absolutely an endorsement of what we've been saying all along, we think there's a case to be answered here," he said.
"It's the government's integrity being tested here, not just the premier's."
© AAP 2018