A federal senator has proposed new laws that could strip former governor-general Peter Hollingworth of millions of dollars in public benefits over his mishandling of sex abuse complaints in the Anglican church.

Key points: Peter Hollingworth resigned as governor-general over a series of scandals in 2003

Peter Hollingworth resigned as governor-general over a series of scandals in 2003 Taxpayers fund Dr Hollingworth's $357,000-a-year pension, plus travel and office expenses

Taxpayers fund Dr Hollingworth's $357,000-a-year pension, plus travel and office expenses The proposed bill would close a loophole by bringing the Commonwealth into line with states and territories

West Australian Greens senator Rachel Siewert will today introduce a private member's bill that would allow a minister or parliament to axe vice-regal pensions over "serious misconduct" in or out of office.

Abuse survivor groups have long lobbied to end Commonwealth payments to Dr Hollingworth — who receives up to $600,000 a year — despite his stint as governor-general ending in disgrace after less than two years.

Dr Hollingworth was forced to quit in 2003 after controversy around his response to sex abuse claims while Archbishop of Brisbane, which included allowing a paedophile priest to work through to retirement.

A royal commission has since found when Dr Hollingworth was governor-general in 2002, he knowingly misled a church-sponsored inquiry about his knowledge of the extent of sexual abuse by a priest.

Beth Heinrich, whose account of a sexual relationship with an Anglican priest who sexually abused her from the age of 15, led in part to Dr Hollingworth's downfall, said the Government should end his "undeserved pension".

"I think it's long overdue — I've been waiting for it for years," she said.

"It's a disgrace. He was forced to resign in disgrace, he was there as governor-general for less than two years.

"Now 16-odd years later, he's [Dr Hollingworth] benefitted from millions of dollars in taxpayers' funds and he really doesn't deserve them."

Sex abuse survivors 'distressed'

Beth Heinrich says it is a disgrace Dr Hollingworth has benefitted from millions of dollars in taxpayer money. ( ABC TV )

Dr Hollingworth's remarks about Ms Heinrich on national television when he was governor-general in 2002 embroiled him in controversy.

He disputed her allegations of abuse, telling ABC TV's Australian Story: "There was no suggestion of rape or anything like that, quite the contrary. My information is that it was rather the other way round."

Ms Heinrich said it "wasn't just his very public untruth [about me] on national television" that justified ending his entitlements but "the findings of the royal commission in his case".

"The politicians should do all they can to make sure that children are protected and examples are made and no-one's above the law," Ms Heinrich said.

Taxpayers fund Dr Hollingworth's $357,000-a-year pension, plus generous travel and office expenses.

Senator Siewert said she had been in contact with sex abuse survivors and their supporters who expressed "deep concern" about his ongoing entitlements.

"Quite frankly, that's putting it mildly — I'd say also distressed," Senator Siewert said.

She said the proposed reform "could affect any former governor-general", who under current laws can keep entitlements even if convicted of criminal offences.

Dr Hollingworth has never been charged or convicted of any offence.

Bill would close loophole, senator says

Senator Siewert said her bill would close a loophole by bringing the Commonwealth into line with states and territories "where similar provisions exist" for stripping former governors of payments.

The law would allow either a minister by declaration, or parliament by a resolution, to cut payments to a former governor-general in the public interest if they were satisfied he or she had "engaged in serious misconduct".

This could involve "inappropriate, improper, wrong or unlawful conduct", including "corruption, sexual misconduct, sexual harassment, theft, fraud and other criminal behaviour".

The draft bill also states that "serious misconduct includes an omission to act".

Senator Siewert says her bill will close a loophole by bringing the Commonwealth into line with states and territories. ( AAP: Lukas Coch )

It said it was not relevant "when the former governor-general was appointed, when the misconduct took place, and whether the misconduct took place in Australia, or outside of Australia".

It would also strip payments from spouses, who are paid five eighths of that pension for life after the death of a retired governor-general.

Last year, the Senate passed a motion by Senator Siewert expressing "concern that there are currently no mechanisms … to cease the pensions or ongoing payments to former governors-general where such a payment is no longer in the interest of the public".

But the major parties voted down her call to change the law, days before the Prime Minister formally apologised to victims of institutional child sexual abuse.

Lack of action 'disappointing', Siewert says

Senator Siewert said it was "disappointing that the Federal Government hasn't acted".

"In the absence of any action from them, I'm introducing this private member's bill," she said.

She said she was unsure of major party support for the reform but the move "enables people to give the bill consideration".

"I'm hoping that people take a very strong interest in this and that it does gather support," she said.

Last year, abuse victim support groups Bravehearts, the Blue Knot Foundation, Care Leavers Australasia Network, End Rape on Campus, Beyond Abuse, and the Queensland Child Sexual Abuse Legislative Reform Council wrote to the Prime Minister calling for the reform.

Their letter said: "At a time when ordinary Australians are working harder than ever … and the taxpayer is bearing the burden of the enormous cost of untreated child abuse, it is not in the public interest that the taxpayer continue to also fund a person who has betrayed the public trust in their previous role as an institutional leader".

In April, senator Derryn Hinch tried in vain to pass a similar motion.

"It is common sense that a government-appointed — not elected — official who is forced to resign due to serious misconduct should not then go on to receive a pension in retirement worth millions of dollars at the taxpayer's expense," Senator Hinch told Parliament.

Dr Hollingworth declined to comment when approached by the ABC via his lawyer.