The Commonwealth auditor-general will not probe a $23 million federal grant presented to a central Queensland stadium project by One Nation leader Pauline Hanson.
Labor Senator Murray Watt wrote to Auditor-General Grant Hehir asking him to look into how the minor party leader came to unveil the grant in a marginal state Labor seat ahead of the October 31 state election.
Mr Hehir declined to probe the individual grant, but says he will conduct a wider audit of the Community Development Grants Programme (CDGP) in future.
"I will however consider an audit of the CDGP in planning for future AAWPs to follow-up on the department's implementation of recommendations in the 2018 audit as well as decisions taken by the Government to fund the program out to 2025-26," the auditor-general wrote in a letter to Senator Watt.
Rockhampton and the nearby electorates of Keppel and Mirani are a key battlefield for Labor and One Nation in the state election.
Rockhampton is held by Barry O'Rourke by a margin of just 5.2 per cent, while Brittany Lauga holds nearby Keppel by a slim buffer of 3.1 per cent.
One Nation's only state MP, Steven Andrew, holds Mirani by 4.8 per cent.
Senator Hanson unveiled the $23 million federal government grant for a new Rocky Sports Club stadium alongside Liberal National Party MP and Northern Australia Minister Michelle Landry on September 14.
Attendees at the Rocky Sports Club funding announcement said the One Nation leader spoke first, followed by Ms Landry, with state Liberal National Party candidate Tony Hopkins also involved.
However, the sitting Labor MP for Rockhampton Mr O'Rourke was not invited.
Ten days later, Queensland Premier Annastacia Palaszczuk pledged $25 million to upgrade the city's existing stadium at Browne Park.
State Treasurer Cameron Dick slammed the One Nation-LNP grant at the time, saying the Rocky Sports Club site was a low-lying rubbish dump.
"Why the federal government thinks it's good to spend money, a very significant amount of taxpayer money on a football oval that gets flooded is beyond me," he said.
"I also don't understand why Scott Morrison thinks it's good enough to give that cheque to Pauline Hanson."
"If you give money to Pauline Hanson and One Nation that's what you get, a bad outcome for the community."
Queenslanders go to the polling booths on October 31.