Queensland Premier Annastacia Palaszczuk will review the generous staffing arrangements made for Katter's Australia Party MPs in Queensland Parliament, following the notorious speech made by KAP senator Fraser Anning.
Senator Anning sparked outrage when he used the Nazi-associated phrase "final solution" during his inaugural parliamentary speech criticising Muslim immigration.
His remarks later got the backing of federal leader Bob Katter and his son and leader of the Queensland KAP Robbie Katter.
Asked about this state parliament on Wednesday, Ms Palaszczuk said she would "review" a special arrangement which allows the three KAP MPs five more staff than usually allocated.
"I have condemned those comments," Ms Palaszczuk said.
"I will be reviewing that arrangement as well."
Liberal National Party Leader Deb Frecklington urged haste, advising Ms Palaszczuk to "rip up this deal immediately".
The Palaszczuk government has had a close working relationship with the Queensland KAP and relied on its two votes during the last term of government when Labor was in minority.
The arrangement continued into another term, with the KAP adding a third seat at the 2017 election.
The younger Mr Katter said Senator Anning's words had been twisted and taken out of context.
"Anyone who says Fraser's language was a reference to neo-Nazi beliefs either hasn't read his speech or is trying to use any excuse to stifle public debate," Mr Katter said in a statement last week.
"Both parties are too scared of extreme left minorities to acknowledge there is an issue with immigration."
Senator Anning, who defected from One Nation to join KAP immediately after taking his Queensland Senate seat, refused to apologise for any offence caused.