Greater Western Sydney lost access to more than $1.1 million extra salary cap space over the next two years as part of the AFL's new competitive balance policy.

The Giants' total player payments have been reduced two years ahead of the schedule laid out when the newest club's draft and salary cap concessions were announced in 2009, contributing to a list squeeze this year.

Former top draftee Will Hoskin-Elliott is likely to join the Magpies. Credit:Rohan Thomson

The removal of the extra money is not a kneejerk response to the Giants' success this year, but formed part of the new competitive balance policy announced in mid-2014.

While the AFL did not clarify that the Giants would sacrifice the additional money, the league said then that it intended for all clubs to be operating from an equal salary cap by 2017.