The state government dismissed the entire council after seven councillors and the mayor were suspended over the charges resulting from a Crime and Corruption Commission (CCC) probe in May 2018.

The Director of Public Prosecutions officially discontinued the fraud charges at a hearing in Brisbane Magistrates Court on Wednesday.

Deputy Premier Steven Miles on Friday defended sacking the entire council and appointing an administrator, saying it was the appropriate course of action at the time.

"The CCC did an investigation, the police made a range of decisions, the DPP have now made a decision also, but that doesn't change the way the government rightly reacted," he said.

Mr Miles also defended the local government laws, which had forced the government's hand.

He said in any workplace, it was normal for employees to be suspended or stood aside if they were charged with serious offences.

"It's what applies to just about every Queenslander in their work. If they are charged with an offence, they are normally suspended until the outcome of that process," the deputy premier said.

"I just don't think it's unusual for people in public roles, any public servant for example, who was charged with a serious offence - it would be very normal for them to be stood aside, in fact you would normally be calling upon us to do that."

Queensland's Local Government Association (LGAQ) has been urging an independent inquiry into the entire episode, particularly the CCC's actions.

Premier Annastacia Palaszczuk said on Thursday the Parliamentary Crime and Corruption Committee was the oversight body of the CCC.

The LGAQ's 16-member policy executive on Friday fired a broadside at the corruption watchdog.

"The CCC's actions in charging these former councillors disenfranchised more than 330,000 Logan City Council constituents," they said in a communique.

"The CCC's actions have irreparably damaged the livelihoods and reputations of the former councillors charged.

"The CCC's actions have damaged the reputation of the local government sector ... and its own standing in the eyes of the public.

"The voters of Logan and indeed the wider Queensland community deserve answers.

"They deserve the confidence that this case will be properly scrutinised, so another Queensland council and community do not suffer the same fate."

Former Logan mayor Luke Smith, former deputy mayor Cherie Dalley and councillors Jennifer Breene, Russell Lutton, Phillip Pidgeon, Trevina Schwarz, Laurence Smith and Steve Swenson all had fraud charges dismissed on Wednesday.

But Luke Smith was committed to stand trial in the District Court on two charges of misconduct in relation to public office.

The eight were all sacked from their positions, and an administrator appointed after the charges were laid by the Crime and Corruption Commission more than two years ago.

The charges related to the decision to sack former chief executive Sharon Kelsey four months after she gave information to the CCC about alleged possible misconduct by Smith.

Australian Associated Press