PM urges states to back building plan

An Infrastructure Australia audit will lay the foundation for a 15-year infrastructure plan to cover roads, water and telecommunications, Tony Abbott says.

Tony Abbott says roads vital to keeping Australia moving will be paid for by funding and tolls. (AAP)

Prime Minister Tony Abbott has urged the states and territories to get behind a 15-year infrastructure plan due by the end of the year.

Mr Abbott says the plan will reveal the costs of inaction, after an Infrastructure Australia audit to be released on Friday warns the cost of road congestion will soar to more than $50 billion in coming years.

"I do invite the states and the territories to support the development of this 15-year plan because Australians want better governments to work together to make everyone's life richer and better."

Infrastructure Australia will develop the plan, due by the end of the year, Mr Abbott told the Infrastructure Partnerships Australia Industry Leaders Luncheon in Sydney.

The plan will cover roads, energy, transportation, water and telecommunications and will drive action by revealing the cost of inaction, he said.

"Infrastructure Australia will work with the states and territories on this audit as it prepares the 15-year plan," Mr Abbott said.

"All Australians will be able to see what our priorities are. All Australians will know what they can expect and when they can expect it."

He said too often governments say they cannot afford to build, and learn too late the cost of delay.

Infrastructure spending should not be seen just as a cost to government, but as an investment.

"Lives are lost on roads that have not kept pace with the traffic on them; productivity is lost through congestion increasing freight costs," he said.

"Every single one of us lose time that we could spend doing something more productive than sitting in traffic."

The Infrastructure Australia audit, released on Friday, warns the cost of road congestion will soar to more than $50 billion in coming years.

The prime minister earlier said vital roads needed to help Australians keep moving will be paid for with a "judicious mix" of government funding and tolls.

Federal Treasurer Joe Hockey said he believes the state governments need to step up and help pay for the infrastructure backlog that is choking Australia's cities.