Credit where it's due; the Victorian government has achieved an outstanding result for the state's taxpayers in selling the lease of the Port of Melbourne for $9.7 billion, about $3 billion more than expected.

This windfall will be rightly used to fund key infrastructure projects across the state, with 10 per cent of the proceeds, about $970 million, to go to regional and rural projects.

A view of the Port of Melbourne from Williamstown. Credit:Jason South

Where credit is certainly not due is in the petty politicking of the federal government. Treasurer Scott Morrison is short-changing Victoria by more than half a billion dollars, claiming that because the state's paperwork was not signed off by June 30, instead of passing on 15 per cent of the sale price, he need hand over just 9 per cent.

Under the federal government's asset recycling scheme, Victoria is entitled to 15 per cent of the sale price for public assets, provided the proceeds are reinvested in productive infrastructure. For the port deal, 15 per cent equals $1.45 billion.