The federal government has axed 50 infrastructure projects after a scathing independent review found tens of billions of dollars in cost pressures that would put plans at risk of failure.
Infrastructure Minister Catherine King pointed the finger at the previous Coalition government after the report found a lack of proper planning and costings, and said the cuts were necessary to ensure the viability of 400 projects to be delivered in the next decade.
The previous pipeline could not be delivered under the $120 billion budget, the review found, with $32.8 billion found in cost pressures.
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"It is clear that the previous government deliberately set about announcing projects that did not have enough funding, and they knew could not be delivered," she said.
"It can only be described, frankly, as economic vandalism."
King said the government would accept or accept in principle all of the review's recommendations.
She said the government's funding for the Infrastructure Investment Program has not dropped, with the same budget now going to fewer projects.
Each state and territory has retained the same funding allocation as before the review.
"It (is) not a savings exercise," King said.
"All states and territories have maintained their funding in the pipeline that they previously had – not a single dollar less over the next 10 years."
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That hasn't stopped criticism from state governments, with Queensland Treasurer Cameron Dick calling on King to reinstate the cancelled projects.
"Our government has not and will not cooperate to support Catherine King's cuts," he said.
"The minister should retract … these cuts."
However, King hit back, claiming the Queensland government had been misinformed.
"There are some projects in all states and territories that are cancelled, but the amount of money that Queensland receives has not been cut at all," she said.
"And there is some confusion, I would have to say, on behalf of the Queensland government.
"I think they have been given some unusual information that does not accord with what we have told them."
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Nine projects in Queensland have been discontinued – fewer than New South Wales' 17 and Victoria's 12, but more than Western Australia, South Australia (both five) the ACT and Tasmania (both one).
No projects in the Northern Territory were cancelled.
Included in the cancelled projects are three commuter car parks in NSW announced by the then-Coalition government before the 2019 election.
In another move that could heighten tensions, King said she is seeking to move to a 50-50 funding split between the Commonwealth and state and territory governments for new projects, instead of 80-20.
