An independent review of the infrastructure investment program has found $33 billion of cost pressures to the economy, with that figure tipped to grow even further.
Infrastructure Minister Catherine King said the investment pipeline, which had increased from 150 to 800 projects under the previous government, had not been managed well.
"It is simply just not sustainable for the pipeline to continue the way that it is after a decade of being used for political purposes," she told ABC Radio on Monday.
"There's been evidence that this infrastructure pipeline has not been managed and not been managed well, and obviously, that is also causing inflation pressures."
Ms King said the management of the program had led to the cost of several projects to balloon.
The minister indicated talks were under way with each jurisdiction on what projects would still be needed.
"We're going through each of those with our state and territory counterparts, trying to make sure we've got the right data, making sure that we've actually factored into account now the importance of various projects across the country," she said.
"What I don't want to do is promise people that we're going to build something when it clearly is not going to be built."
The infrastructure pipeline was estimated to be worth more than $120 billion.
Ms King announced a 90-day review of the pipeline in May in a bid to make the program more sustainable.
At the time, 162 programs in the pipeline had a government commitment of $5 million or less.
Projects that had been announced in the budget or had already started construction were not impacted by the review.
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