The federal government, now led by a public transport enthusiast, is open to funding any project that reduces congestion in cities.
Under the previous Abbott government, the commonwealth said it had no place in paying for public transport projects and would only fund roads, such as the stalled East-West link in Melbourne.
The new approach was to look at "whatever will improve lives and reduce transport blockages", Environment Minister Greg Hunt told ABC radio on Friday.
"We now have an increased emphasis on cities, a particular emphasis ... on better transport in terms of whatever will reduce congestion, improve connectivity, which means the ability of people to walk, to travel, to move freely," he said.
Mr Hunt, Cities Minister Jamie Briggs and Major Projects Minister Paul Fletcher will look for practical projects that will cut down on the number of traffic jams in Australia's cities.
Prime Minister Malcolm Turnbull wanted projects that stacked up financially, helped reduce congestion and improved quality of life, Mr Hunt said.
The change in focus comes a day after the prime minister indicated his government could be open to helping fund the Melbourne metro rail project.
Mr Turnbull said all urban infrastructure should be assessed on its merits, without discrimination between roads or rail.
Mr Hunt said the commonwealth was still "absolutely committed" to building the East-West link, the money for which former prime minister Tony Abbott had declared was in a "locked box" despite the Victorian government dumping the project.
Mr Turnbull has long been an enthusiastic public transport user and caught a Sydney ferry as part of his morning commute on Friday.
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