The Queensland city of Ipswich could be without a local council for up to two years after mayor Andrew Antoniolli stood down and the State Government said it will sack the entire council.

Mr Antoniolli, despite previously refusing to do so, announced he will stand down from the role after being charged with seven counts of fraud by the Queensland corruption watchdog.

Dodging media today, he left his house refusing to comment but later released a statement saying he was leaving the job in the best interests of his city and his family.

Embattled Ipswich mayor Andrew Antoniolli has stood down. (AAP) (AAP)

Deputy Mayor Wayne Wendt was appointed in an acting role but his time in the job may be short-lived.

Thirty minutes after Mr Antoniolli announced his decision, the Local Government Minister Stirling Hinchliffe stood up in parliament and informed the house he would be sacking the council.

"When a community loses faith in its elected leaders as is the case in Ipswich, it's time to act," Mr Hinchcliffe said.

Annastacia Palaszcuk's government has taken steps to dissolve the council. (AAP) (AAP)

The Ipswich City Council will be sacked, while former mayor. (9NEWS) (9NEWS)

"The people of Ipswich are shocked by what has happened, some are angry, many are outraged, others are quite frankly appalled at what they perceive as the repeated breaches of trust from their elected representatives."

The city will technically be without a complete council as the CCC brings forth its investigations against each of the councillors and an administrator takes control of the local government until an election - next scheduled for 2020.

Mr Wendt today said the councillors will be fighting for their jobs.

Local Government Minister Stirling Hinchliffe today announced an administrator would be appointed at the council. (AAP) (AAP)

"While we acknowledge that the CCC has laid multiple charges against people who have worked for this council, it must be stressed that no one has been found guilty of anything," he said.

The latest breach alleges Mr Antoniolli used taxpayer money to buy $60,000-worth of charity auction items for himself - including bikes, football jerseys and hampers.

He joins a long list of elected Ipswich councillors and senior executives to be charged by the Crime and Corruption Commission.

The most high profile is former mayor Paul Pisasale, who is facing a number of charges including official corruption .

Former Ipswich mayor Paul Pisasale is also facing fraud charges. (AAP) (AAP)

Mr Antoniolli has been in the top job less than a month after winning a by-election promoted by Mr Pisasle's resignation.

He campaigned for the position on the promise of a fresh administration with openness and transparency as a focus.

Several councillors have left the city council chambers after news they will be sacked.

Most have gave no comment about the ongoing crisis, seemingly unsure of their future.

Councillor Charlie Pisasale, brother of Paul Pisasale, offered only: "We're all good councillors."

Questions have been asked of the Premier Annastacia Palaszczuk about why her government didn't act sooner to dissolve the under pressure government.

In parliament, she said the time had now come to act.

"There are too many charges levelled at too many officials for anyone to have confidence in the management of Ipswich City Council," she said.

"Enough is enough. This will stop, I am stopping it.