Treasurer Scott Morrison admits the federal government's much-trumpeted $5 billion kitty for northern Australian building projects has been a disappointment.
Only one project has been approved, 17 are going through a due diligence process and 90 are being considered across Western Australia, the Northern Territory and Queensland since the Northern Australia Infrastructure Facility was launched in 2016.
Mr Morrison was in Townsville on Tuesday to spruik an eastern rail corridor infrastructure project.
Asked if the NAIF had been a failure because it hadn't spent money in Queensland so far, Mr Morrison responded, "It's been disappointing to date."
"That's why we changed the rules. That's why we freed it up," he told reporters.
The overhaul includes removing the cap on 50 per cent on the amount of debt the Commonwealth can take on.