The party's arts election policy released on Friday states the dumping of Australia's Venice Biennale entrants threatens artistic freedom of expression, brought Creative Australia into disrepute and left the nation's creative workers in crisis.
Khaled Sabsabi and curator Michael Dagostino had been invited to the prestigious biennale, but their invitation was quickly revoked once Sabsabi's early artworks featuring the September 11 terror attacks on the United States came to light.
Creative Australia chief executive Adrian Collette acknowledged its selection process for the biennale had fallen short and would be subject to an external review, but said the board was compelled to exercise its judgment given the circumstances.
"As public debate intensified and scrutiny was applied to some of the artist's prior works - it became very quickly evident to the board that the organisation was confronting significant risks to its future mission," Mr Collette told a senate estimates hearing on Tuesday.
Artists and curators previously selected for Venice are among more than 4000 people to publicly support the art duo, and on Thursday a protest was staged outside Creative Australia's office in Sydney.
"The ongoing scandal at Creative Australia is a reminder that freedom of artistic expression must be defended with vigilance," said Greens senator Sarah Hanson-Young.
With a federal election due within the next three months, the Greens have proposed spending $2 billion on the arts over the next decade including live performances and festivals, youth arts and administration.
The platform includes a basic wage of about $750 for up to 10,000 artists and arts workers earning less than $80,000, with a year-long pilot program for the payment to cost about $313 million over four years.
A capital works fund for the arts would also spend $300 million building arts venues, in response to the closure of hundreds of live music venues since the pandemic.
The Greens also want to see a year-long program to employ an artist in residence at every school and public library in Australia for two days per school term, at an expected cost of $36 million.
The policy also sets a minimum performance fee for musicians, which would see them paid at least $250 for performing at publicly funded events.
"The creative sector is in turmoil right now with too many creatives struggling to make ends meet, venues facing closure and festivals cancelled," said Senator Hanson-Young.