Refugee advocates lashed out at the Abbott Government after news emerged that hundreds of thousands of dollars that had been allocated for the country’s peak refugee body over a four-year period had been slashed.

Core funding of $140,000 a year had been allocated for the Refugee Council of Australia in this month’s Federal Budget, but the funds have since been axed by Immigration Minister Scott Morrison.

Chief executive Paul Power said the news broken to him by a phone call from the Department of Immigration and Border Protection.

“This decision is petty and vindictive and is symbolic of the Minister’s very poor relationship with the non-government sector," he said.

"While we and other agencies maintain constructive dialogue with other members of the Government, it is clear that Mr Morrison has little interest in the ideas and concerns of non-government agencies which support refugees and asylum seekers.”

Mr Power said the Council would now seek support from the public.

“The withdrawal of our core funding represents a tiny cost saving for the Government – less than half of the annual salary of a Minister – but is close to one quarter of our organisational budget," he said.

"It will hurt us but we have no intention of reducing our small staff team or allowing this cut to distract us from raising a voice for justice and compassion for refugees. We are writing to our supporters asking for their help and will be seeking wider support to raise the funds we have lost."

Immigration Minister Morrison said the decision was motivated by budgetary constraints, adding that the government would be returning to funding arrangements implemented under the Howard government.

He said the government's contract services with the Refugee Council for the refugee humanitarian program would continue, but that funding for administrative tasks and advocacy would be scrapped.

"In a tough budget like this, frankly I form the view that taxpayers' funds were not going to be spent on those types of activities," he said on Sky News.

Minister Morrison also denied that the funding cut amounted to a move to stifle dissent.

"I doubt that anyone could suggest that there has been any diminution in the level of public commentary from any group in relation to the government's border protection policies," he said.

The funding cuts coincide with a candle-light vigil, held at Sydney's Town Hall, to protest over the murder of Iranian asylum seeker Reza Barati on Manus Island.

Event organiser and spokesman for the Refugee Action Collective Ian Rintoul says neither the PNG police nor the Australian government is interested in getting to the heart of who killed Mr Barati on February 17.

The Salvation Army has said its former PNG employee accused of leading the brutal bashing is a caring Christian man.

Opposition Leader Bill Shorten criticised the cuts when addressing media on Friday morning.



“This government wants to cut off its critics,” he said.