Federal axe falls on NSW road and rail projects

The nation's most populous state will lose out on Commonwealth backing for the largest number of projects of any jurisdiction, with the funding cut taking money away from a series of road projects.

Some 17 NSW projects will no longer receive federal funding, including several commuter car parks announced by the former coalition government that were labelled as pork-barrelling by the Labor then-opposition.

NSW Treasurer Daniel Mookhey slammed the decision, saying some of the projects to lose funding are already in the process of being delivered.

Treasury figures suggest the state will be $1.4 billion worse off under the decision.

"We expect better from the Commonwealth regardless of who's in charge," Mr Mookhey said.

"NSW is doing the most to back in the Commonwealth population policy.

"We expect them to help us get the houses built, the roads built and the public transport built that communities expect."

A billion-dollar upgrade of the Great Western Highway through the Blue Mountains is among the biggest projects to lose federal support.

State support for the project, which would include a tunnel bypassing sections of the road from Katoomba to Lithgow, had already evaporated with funding axed in the September budget.

Federal funding will also be stripped from a $1.7 billion interchange linking the M7 and M12 motorways, due to open in 2026 to provide better road access to Western Sydney Airport.

Mr Mookhey said the M7 and M12 project, which is already under construction, will be completed.

Support for upgrades of several regional roads was also axed, including for the Bruxner Highway in northern NSW, and for planning works relating to the Gwydir Highway and Oxley Highway.

Work on upgrading train speeds on a Central Coast section of the rail route between Sydney and Newcastle will no longer receive federal backing.

The $2 billion project would upgrade a 10km section of track, doubling the line's capacity and allowing faster trains to overtake slower passenger and freight trains.

Federal Infrastructure Minister Catherine King said the projects that received cuts were not realistically going to be delivered with the money available, or did not line up with national priorities.

As part of the infrastructure overhaul, the Commonwealth will also only contribute 50 per cent of major project funding.

Mr Mookhey said NSW had been ignored during ongoing consultation with the federal government.

"When the minister said the Commonwealth would back projects that are contracted, we expect her and her government to stick to its word," he said.

Premier Chris Minns previously said he was "very concerned" about what the changes would mean for NSW, adding that the state's residents contributed a large amount of income tax to federal coffers and deserved a fair share in return.

Extra federal funding was put aside for six projects following the review, with an upgrade of Richmond Rd at Marsden Park in Sydney's northwest getting the largest boost of $50 million.

LIST OF NSW PROJECTS TO LOSE COMMONWEALTH FUNDING:

*Blaxland Road/Balaclava Road Intersection Improvements

*Bruxner Highway - Wollongbar to Goonellabah

*Commuter Car Park Upgrade - T1 North Shore, Northern and Western Line - Kingswood

*Commuter Car Park Upgrade - T1 North Shore, Northern and Western Line - St Marys

*Commuter Car Park Upgrade - Woy Woy

*Great Western Highway Upgrade - Katoomba to Lithgow - Construction of East and West Sections

*Gwydir Highway Improvements - Planning

*M7-M12 Interchange

*Mulgoa Road Stage 2 - Glenmore Parkway to Jeanette Street, Stage 5A Blaikie Road to Jamison Road, and Stage 5B Jamison Road to Union Road

*Northern NSW Inland Port - Narrabri

*Oxley Highway Stage 2 - Planning

*Remembrance Driveway Corridor Upgrade - Camden Council

*Southern Connector Road, Jindabyne

*Sydney to Newcastle - Tuggerah - Wyong faster rail upgrade

*Toowoomba to Seymour - New South Wales - Moree Intermodal Overpass

*Werrington Arterial Stage 2 - Planning

*Western City Road Transport Network Development - Planning

Australian Associated Press