A tiny charity granted $443 million in Great Barrier Reef funding would be forced to hand the money back if Labor wins office, severely stifling the organisation’s ability to spend the funds even before the next federal election.

Labor’s environment spokesman Tony Burke is on Wednesday expected to announce that a future Shorten government would change the policy on how the money is to be used, and all funds not yet spent by the Great Barrier Reef Foundation would have to be returned to the Commonwealth.

The Great Barrier Reef Foundation would be forced to return $443 million in public funding under a Labor government. Credit:Tourism and Events Queensland

In a letter sent to the foundation’s chairman John Schubert, sighted by Fairfax Media, Mr Burke warns that a federal election “can be called at any time”.

“I ask that the foundation be mindful of this commitment in any spending decisions that it makes,” he writes.