The funding also bypassed established channels such as the CSIRO, the Australian Institute of Marine Science and the reef's Marine Park Authority. These groups are now likely to have to apply to the foundation for research grants.

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Senator Kim Carr, Labor's innovation spokesman, queried Dr Marshall about the "big lob of dough" from taxpayers, asking: "In CSIRO's history give me an example of where this has happened before?"

"Malcolm Turnbull is giving a group of private business people $444 million of taxpayers' money, with no oversight, no conditions and no objectives," Senator Carr told Fairfax Media.

"The rushed, unorthodox nature and scale of this funding announcement has all the hallmarks of a government who is driven by electoral panic, rather than policy integrity," he said.

The Foundation was set up by four businessmen in 2000 although the body has so far refused to disclose their names.

Senator Michaelia Cash, the minister for jobs and innovation, told estimates that "the government is very proud of its investment in the Great Barrier Reef".

"It’s one of our greatest economic assets and we need to protect the 64,000 jobs currently reliant on the [reef], and that’s exactly what we’re doing," she said, adding that the region generated $6.4 billion a year for the Queensland and Australian economy.

Josh Frydenberg, Environment and Energy Minister, said "the partnership with the Great Barrier Reef Foundation will be established through a Reef Trust grant agreement and the Foundation will be required to report to the Department of the Environment and Energy on grant activities".

“While accessing their own expert advice, the Foundation will also work closely with the Department of the Environment and Energy and the state government department as well as independent Reef advisory bodies and expert institutions such as the Great Barrier Reef Marine Park Authority and Australian Institute of Marine Science to ensure the investment is delivered to best effect through a range of delivery partners.”

Senator Carr said the CSIRO had a reputation for rigorous science allocation process for the funding of research.

"I am surprised that the funding announcement became known to the CEO of CSIRO a week before it was made, by the way of rumour."

Christian Roth, research director for the CSIRO, also represents the science body on the Foundation's International Scientific Advisory Committee.