Labor wants war memorial rebuild costs cut

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Labor has called a $500 million redevelopment of the Australian War Memorial into question, saying the project costs should be lowered.

The federal opposition is also demanding Anzac Hall be saved from demolition, in a rare dissenting report published by parliament's public works committee.

Labor committee members Tony Zappia and David Smith say they support the intent behind the redevelopment of the cultural institution, but quibble with the price tag.

"Labor members believe that the government should consider a range of lower cost options that would still meet the stated purpose of the proposed works, while achieving better cost effectiveness and value for money for the taxpayer," they said.

The pair also called for Anzac Hall to be "adaptively reused" rather than destroyed.