One of the nation's oldest health organisations has been placed in voluntary administration after its funding was cut by the government.

The Alcohol and Other Drugs Council of Australia, which has operated since 1966, learned on Monday its funding would cease immediately. The council is the peak body for organisations working to minimise the harm caused by drugs and alcohol, providing professional development, information sharing and advocacy services on an annual budget of $1.6 million from the federal Health Department.

President of the council's board, former Liberal MP Mal Washer, said the decision was a ''devastating blow'' that would undermine years of work.

''It effectively erases decades of corporate knowledge, and leaves the sector without representation at a national level,'' Dr Washer said.

The council's National Drug Sector Information Service, a repository of nearly 100,000 resources on alcohol and other drugs, will effectively shut down as a result of the funding cut. The decision, made by Assistant Minister for Health Fiona Nash, came despite a written assurance from the department in April that the council's funding was secure until July 2015.

Council patron Ian Webster, Emeritus Professor of Public Health and Community Medicine at the University of NSW, said the effects would be felt across the community. ''In 46 years, this is the only government that has decided it can do without ADCA's advice,'' Professor Webster said.

Labor health spokeswoman Catherine King described the move as ''callous'' and urged Health Minister Peter Dutton to reverse it.

''Should rates of alcohol and illicit drug use rise in the future, this decision should weigh heavily on Mr Dutton. It is one I utterly condemn,'' she said.

Greens health spokesman senator Richard Di Natale said the Coalition was breaking an election promise not to cut the health budget.

A spokesman for Ms Nash said the Coalition government had needed to review the funding of a number of organisations because the Rudd and Gillard governments had left behind a projected net debt of $200 billion.

‘‘The Australian government seeks advice on alcohol and drugs policy from wide-ranging sources in the sector and funds a number of national peak body organisations,’’ the spokesman said.