NSW Minister for Aboriginal Affairs Victor Dominello has called for Roy "Dootch" Kennedy to stand down as chairman of the Illawarra Local Aboriginal Land Council after he was charged with child sex offences.
Discussions are also under way among members of the local Aboriginal community about having the Sandon Point Tent Embassy, which was established almost 14 years ago, removed.
Kennedy, a prominent activist and founder of the Sandon Point Aboriginal Tent Embassy, faces nine charges, including having sexual intercourse with a child aged between 10 and 16 on six separate occasions between 1992 and 1996.
Police allege he also sexually assaulted a child at different times between 1997 and 1999.
In a strongly worded statement, Mr Dominello has called on Kennedy to relinquish his chairmanship of the land council.
"Given the seriousness of the allegations against Mr Kennedy, it is entirely inappropriate for him to continue to serve as chairperson," Mr Dominello said.
"I know the registrar, Stephen Wright, has written to board members advising them on the appropriate course of action.
"I strongly encourage board members of Illawarra LALC to do the right thing and ensure Mr Kennedy is stood down as chair when they meet to consider the matter next Wednesday."
NSW Aboriginal Land Rights Act registrar, Stephen Wright, has advised Kennedy should leave his position.
"In these circumstances it is, in my opinion, in Mr Kennedy's and the Illawarra LALC's best interests for him to resign as the chairperson of the ILALC forthwith," Mr Wright wrote.
"The charges he faces are serious matters and will be debated publicly. Mr Kennedy's interests are in privately preparing his defence against the charges; the Illawarra LALC's interests are in maintaining a respectful distance from his criminal matter and continuing to do business unimpeded by Mr Kennedy's circumstances."