Ousted Ipswich City Council mayor Andrew Antoniolli has resigned from the Labor Party a day after being charged by the state's corruption watchdog.
Mr Antoniolli's decision comes just hours after he was issued with a notice to show cause why he should not be expelled.
The former policeman, who will front court later this month on seven fraud offences, denied any wrongdoing and initially said he wouldn't stand down as mayor. He changed his mind on Thursday morning.
He's among 12 people facing a total of 66 charges from a Crime and Corruption Commission investigations into the Ipswich council.
The Queensland government will now appoint an administrator at the council and ask it to show cause why it should not be sacked.
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Councillor David Morrison said the council, which is considering its options on the show-cause notice, must let the court process take its course.
"We're all shocked," he said. "Every councillor that I sit on that table with has got a passion for their community."
Cr Morrison praised Mr Antoniolli for his efforts since being elected as mayor in August.
"I think he's done a fantastic job," he said. "But these allegations are before him and they've got to be addressed.
"I don't think any residents have been cheated. There's maybe processes in council which have got to be addressed."
Long-time councillor and former deputy mayor Paul Tully said it would be unfair for the whole council to be dissolved.
"I'm dismayed for the people of Ipswich," he told ABC radio.
"Some people thought the council should be dissolved, but what that means is all of the local representatives disappear at the same time and the opportunity for local ratepayers to be heard disappears at the same time."
