The Ipswich City Council's legal action to avoid the sack is not a declaration of war on the Queensland Government, but a move to protect ratepayers and other councils, Acting Mayor Wayne Wendt says.

The council lodged an application with the Supreme Court last night in a bid to dispute a recently issued show cause notice.

"Nobody wants to go through this but our hands have been forced," Cr Wendt said.

"This is not about declaring war on the State Government. To the contrary, it is about seeing sense in the situation and seeking an opportunity to find the right solutions.

"Importantly, it is also a move to protect all Queensland councils into the future by ensuring that from the outset these ministerial powers are appropriately applied to avoid a dangerous precedent being set."

The show cause notice was given to the council last week by Mr Hinchliffe in a move to dismiss the council using new powers passed in Parliament last month.

It was the second show cause notice, the first of which was issued before the bolstered powers were put in place.

The council argued the Minister did not have the jurisdiction to dismiss or suspend it.

Acting Ipswich Mayor Wayne Wendt said the Council would fight to keep their jobs. ( ABC News: Josh Bavas )

Cr Wendt said the council had been "very respectful and professional" and had provided Local Government Minister Stirling Hinchliffe with all the information he required.

"We have offered solutions and we have provided evidence that has refuted his concerns," he said.

"Yet we remain passengers in the process which has seemingly looked beyond the innocence of ten elected councillors."

The Acting Mayor's media conference was shifted inside a council building to avoid a small group of protestors who shouted slogans calling on councillors to resign.

Legal proceedings 'gravely disappointing': Minister

In a statement, Mr Hinchliffe said it was "gravely disappointing" to see the council hiding behind new legal proceedings that were not in the best interests of the city.

"Residents, ratepayers and businesses deserve transparent and accountable leadership — they want a council they can have confidence in," Mr Hinchliffe said.

"I am more determined than ever to address any governance shortcomings at Ipswich City Council, which is why I've issued a show cause notice that includes a right of reply.

"Council's delaying tactics in seeking to circumvent the legal process already underway will only create more uncertainty and confusion for the people of Ipswich."

He said he would not hesitate to use his powers, or seek new powers if necessary, to ensure the council was able to serve the city's best interests.

"I will monitor tomorrow's proceedings closely, and any actions I take will be focused solely on restoring transparency and accountability at Ipswich City Council," he said.

Stirling Hinchliffe says he is "gravely" disappointed at the Council's decision. ( AAP: Dan Peled )

Opposition Leader Deb Frecklington has taken aim at both the Government and the council.

"I feel sorry for the people of Ipswich who deserve certainty about the future of their local community which has been ripped apart by Labor's alleged corruption scandal," she said.

"This Labor council's priorities are all wrong, first they turned waste into a cottage industry, yesterday they jacked up rates above inflation, and now they are using ratepayers money to fund a legal challenge.

"This Labor council should be focussed on answering the questions in the show cause notice."