Bank of Queensland employee and Dubbo Regional councillor Kevin Parker has been suspended from his duties at the bank after NITV News revealed that he sent a racist 'joke' via his company email account.
Mr Parker sent the email to a number of recipients including fellow council members and other BOQ staff.
In a statement to NITV News, a Bank of Queensland (BOQ) spokesperson said Mr Parker had been suspended while the bank "conducts a full investigation into the matter".
"BOQ only became aware of the email after NITV brought it to our attention this afternoon," the statement read
"BOQ has a strict Code of Conduct and does not condone or accept behaviour that falls below the community, and our own, expectations.
"This incident does not reflect how BOQ aspires to treat our First Nations People and we offer our sincerest apologies."
In January, Kevin Parker sent an email with the subject line titled "JET BLACK" from a BOQ email address.
The email went on to say "the world's first aboriginal [sic] version of SNOW WHITE... has been put on hold due to an industrial dispute.
"All seven Aboriginal dwarfs, Dealer, Stealer, Mugger, Carjacker, Shoplifter, Drinker, Bludger, have walked off the set," the email continued.
"After refusing to sing the HI Ho song. All 7 are insisting they have no F....ing intentionn [sic] of singing ITS OFF TO WORK WE GO."
Dubbo mayor Ben Shields said in a statement to NITV News that the "contents of the email are disturbing and absolutely do not align with the values of myself or Dubbo Regional Council".