A senior Turnbull government minister has rejected claims Liberal-National Party senators were preparing to unleash a smear campaign against Queensland Premier Annastacia Palaszczuk over her partner's links to the Adani mining project.
Ms Palaszczuk has reversed state Labor's previous commitment to a possible $1 billion loan from the Northern Australian Infrastructure Facility, citing a conflict of interest.
Federal Resources and Northern Australian Minister Matt Canavan denies he or his colleagues were planning to use the involvement of Ms Palaszczuk's partner in the NAIF application to smear the premier, telling ABC radio on Monday: "None of us had any information about this matter.
"This has been a smear from herself as a smokescreen to try and hide the fact that the Labor Party in Queensland are massively divided on this particular issue."
Ms Palaszczuk at the weekend announced she would instruct the cabinet budget review committee to veto the loan if Labor was re-elected on November 25.
The proposed loan -- to help fund the building of a rail line linking the proposed mine's site in the Galilee basin to two coastal ports -- is one of the most contentious aspects of the $16.5 billion project.
The Greens and environmentalist activists have been urging the Palaszczuk government to reject the project, threatening to withhold preferences in marginal Labor seats in inner-Brisbane.
Senator Canavan accused Labor of teasing Queenslanders by supporting the project, but not anyone investing in it.
"They're trying to walk both sides of the street here," he said.
