Australian Olympic Committee (AOC) President John Coates has insisted that a successful Queensland 2032 bid would help the country with its coronavirus recovery.
The official claimed that staging the Olympic and Paralympic Games in 12 years' time would provide a boost for jobs and growth and attempted to play down fears about costs.
Queensland's bid, which centres on Brisbane, is currently on hold because of the COVID-19 pandemic which has forced much of the world into lockdown.
Coates, an International Olympic Committee (IOC) member who is the President of the Tokyo 2020 Coordination Commission, believes the 2032 Games would help address the financial blow the global health crisis has caused.
His comments are in contrast to some officials, with North Queensland Federal MP Bob Katter among those to have voiced disapproval.
"If it was a stupid idea to sink billions into a Brisbane Olympic Games before COVID-19, then it is infinitely more stupid now," Katter said last month.
Speaking at a Parliamentary Friends of the Olympic Movement event, Coates, a former IOC vice-president and Executive Board member, said: "I have always believed in making necessity a virtue.
"There is already a need for jobs and growth in the Queensland economy arising from the impact of COVID-19.
"Our partner three levels of Government recognise a potential 2032 Olympic and Paralympic Games as a critical part of the state and nation's economic recovery in the short term, quite apart from all of the long-term health, well-being, economic and sporting legacies.
"For any of you who may be concerned about the AUD$4.5 billion (£2.5 billion/$3.1 billion/€2.7 billion) cost of conducting the Olympic and Paralympic Games, the IOC has already committed $2.5 billion (£1.4 billion/$1.7 billion/€1.5 billion) at least, being the amount of its contributions to the 2028 Games in Los Angeles.
"The balance will be covered by national sponsorships and ticket sales.
"And I stress, these days the IOC encourages and requires the use of existing and temporary community and sports venues, which in the case of south-east Queensland, with Cairns and Townsville for football preliminaries, 85 per cent are existing."
Venues which were used at the Gold Coast 2018 Commonwealth Games are among those proposed for Queensland 2032.
AOC chief executive Matt Carroll claimed last month that the Australian candidacy, which was officially launched in December, was still "ahead" of its rivals despite the pause due to COVID-19.
Germany, India and Indonesia are among the other contenders, but hopes for a historic joint-bid between North and South Korea look to be at an end as relations deteriorate between the two neighbours.
In January, Australian politician Pauline Hanson, the leader of the right-wing One Nation party, launched a campaign against the Queensland bid.
A decision on the 2032 Games could be made by the IOC as early as 2022.