The Turnbull government doesn't want to be the ATM for local and state governments for funding major projects.
Instead Assistant Minister for Cities Angus Taylor says the government wants to make an investment return from infrastructure funding rather than just doling out grants.
"But we are not talking about making every road a toll road," he told Sky News on Sunday.
In a shift away from the former Abbott government that avoided public transport funding, Mr Taylor said there is a priority to reduce the time it takes to get people from home to work, services, schools or wherever they are going.
He says public transport use has increased in the last 10 years and as cities become more congested, more and more of the jobs are in the CBDs.
"We need to invest more in these transport projects, they may be public transport, they may be roads," he said.
The NSW MP said for Sydney the jobs are in the east, but the home building is in the west.
As such, he wants major projects like the Badgerys Creek airport to create serious numbers of jobs in the surrounding area.
He believes the fundamental problem with housing affordability is not demand but supply.
"What we have got to do is connect the major transport infrastructure investments alongside housing developments. The two have to happen in parallel," he said.
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