The Melbourne International Comedy Festival has dropped Barry Humphries’ name from its major prize, the Barry Award, a decision that follows Humphries’ recent divisive comments about transgender people.

The announcement was made on Monday night, before the nominees for the prize were revealed on Tuesday morning – including the transgender comedian Cassie Workman, whose show Giantess details the early stages of her transition.

Anne Edmonds, Geraldine Hickey, James Acaster, Nath Valvo and Tom Allen are also nominated for the prize, which will now be called the Melbourne International Comedy Festival Award.

Explaining the decision in a statement to the press, the festival’s director, Susan Provan, said: “It is time for the award for most outstanding show to be in our name to celebrate the city that inspired the growth of our festival and its outstanding artists.”

Humphries – who created the characters Dame Edna Everage and Sir Les Patterson and helped launch the festival in 1987 – has drawn criticism recently for comments about transgender people.

In a 2016 interview with the Telegraph, for instance, the comedian described gender reassignment surgery as “self-mutilation” and Caitlyn Jenner as “a publicity-seeking ratbag”, while decrying the “new puritanism” of political correctness – comments which he has since claimed were “grossly misinterpreted”.

But in a 2018 interview with the Spectator, Humphries appeared to double down, describing transgenderism as “a fashion” and saying “how many different kinds of lavatory can you have? And it’s pretty evil when it’s preached to children by crazy teachers.”

In a more recent interview with the Guardian, Humphries defended fellow Australian Geoffrey Rush against allegations of professional misconduct, which Rush denies and has recently successfully sought damages for in a defamation lawsuit. “I don’t think it’s fair,” Humphries said, describing touching “some Sheila on stage” as “part of the job”. The allegations Humphries refers to were not substantiated during Rush’s defamation trial.

Winning the award in 2017, Hannah Gadsby said: “I don’t agree with a lot of the things Barry Humphries has said recently … It is not something I will walk past. With full respect, I would like to accept this award just for me.”

She expanded on the sentiment in a 2018 tweet, claiming “Humphries … has completely lost the ability to read the room.”

Barry Humphries loves those who hold power, hates vulnerable minorities and has completely lost the ability to read the room. Thats not a comedian, thats an irrelevant, inhumane dick biscuit of the highest order. — Hannah Gadsby (@Hannahgadsby) July 22, 2018

To the Guardian on Tuesday, Provan said that Humphries comments “were a factor” in the decision, but that “for some time the Festival and comedy community have discussed renaming the award”.

Comedian Zoe Coombs Marr, who won the award in 2016, praised the decision on Tuesday, calling it a “massive win” for comedy.

“I’m so proud of the comedy festival for doing what Barry Humphries himself seems unable to do – listening to criticism, moving with the times and stepping up to the plate to ultimately make things more inclusive for everyone,” she said in a statement. “Good bloody on them! …

If this change means more new & diverse voices are welcomed in, then in the end, that’s a massive win for comedy.”

A number of media outlets, including the Herald Sun and Pedestrian, have linked the name change to Humphries’ comments.

Humphries, Gadsby and Workman have been approached for comment. The Melbourne International Comedy Festival awards will be announced at 1pm on Saturday 20 April.

Melbourne International Comedy festival awards nominations

Melbourne International Comedy Festival Award for the most outstanding show:

Anne Edmonds – What’s Wrong With You?

Cassie Workman – Giantess

Geraldine Hickey – Things Are Going Well

James Acaster – Cold Lasagne Hate Myself 1999 (UK)

Nath Valvo – I’m Happy For You

Tom Allen – Absolutely (UK)

Best Newcomer Award:

Blake Freeman – There’s Something There

Dan Rath – Bubble Bath

Nina Oyama – Needs a Lift

Oliver Coleman – Poolside

The Golden Gibbo:

Game Boys – Game Boys Cinematic Universe

Lauren Bok – Rock Out With Your Bok Out

Margot Tanjutco – Vanity Fair Enough

Neal Portenza & Joshua Ladgrove – Neal Portenza is Joshua Ladgrove

Oliver Coleman – Poolside

Patrick Collins – Mime Consultant

• This article was amended on 16 April 2019. Barry Humphries was a launch act for the festival in 1987, but was not a co-founder. Hannah Gadsby won the Barry Award in 2017, not 2016.