The future of Australia's participation in the Venice Biennale is under a cloud after another major arts donor pulled its financial support.

The Balnaves Foundation announced on Monday it would no longer provide funding towards Australia's participation at the Venice Biennale, the world's leading contemporary arts event, after changes announced by the Australia Council for the Arts.

Hamish Balnaves (left), with father Neil, said changes to Australia's participation in the Venice Biennale were ill-conceived and misguided. Credit:Brendan Esposito

Its withdrawal follows a decision by prominent arts philanthropist Simon Mordant to halt financial support for Australia's next exhibition at the Venice Biennale in protest at the lack of consultation about the changes, which include abolishing the role of independent commissioner and changing the process of selecting artists.

Hamish Balnaves, the general manager of the Balnaves Foundation, said the changes were ill-conceived, misguided "and will destroy a successful public/private partnership".