The head of the authority which advises the Federal Government on Australia's infrastructure needs has slammed the Coalition over its plans to overhaul the organisation.

The Opposition has called on the Government to scrap plans to overhaul Infrastructure Australia after stinging criticism from the infrastructure coordinator, Michael Deegan.

Mr Deegan and the Opposition both believe the changes, if passed by Parliament, would damage independence and transparency in infrastructure funding.

Mr Deegan says he is disappointed and disturbed by the lack of consultation over the proposed changes and worried the body's independence will be undermined.

But the Coalition believes the changes will strengthen the independence of the authority, which was set up by the Rudd Labor government in 2008.

The Coalition introduced legislation to Parliament that it says will improve the independence and transparency of authority.

But Mr Deegan has used a submission to a Senate inquiry examining the bill to say he is worried Infrastructure Australia's independence will be undermined as the Government seeks to take greater control of infrastructure planning.

Opposition infrastructure spokesman Anthony Albanese has seized on the submission.

"From a public servant to make such a strong submission says a lot about just how bad the job is that's being done to do over the independence of the Infrastructure Australia process," he said.

He echoes some of the concerns raised by Mr Deegan, including provisions that would give the Government control over what projects the body assesses and whether their assessments will be publicly released.

"He is gutting Infrastructure Australia's independence with this legislation," Mr Albanese said.

"The infrastructure coordinator has pointed out that under this legislation, the minister will be able to exclude whole classes of infra investment, including public transport."

Lack of consultation criticised

Mr Deegan has also told the Senate inquiry that he is disappointed and disturbed that Infrastructure Australia was not consulted when the legislation was being drafted.

Mr Albanese says it is a backwards step.

"It's a return to the days whereby political decisions will be made rather than decisions being made on the basis of productivity and economic benefit."

In a statement, Infrastructure Minister Warren Truss says the criticism "reflects a fundamental misunderstanding of the Government's policy".

He says the new governance structure will give Infrastructure Australia more independence from ministerial control.

But he has indicated a willingness to make minor amendments if the Senate committee examining the legislation recommends it.

Hockey says infrastructure central to G20 talks

Infrastructure is key to the Coalition's economic agenda. Treasurer Joe Hockey says it will be a central issue when the G20 finance ministers meet in Sydney next month.

"We are going to focus on ways that we can lay down a global growth agenda that particularly enhances the role of infrastructure and public-private partnerships on infrastructure."

The Coalition says its infrastructure priorities will be projects that deliver productivity benefits so as to boost the economy.

"And what Tony Abbott said in Davos emphatically, speaking for Australia, is that we need to have a growth agenda for the world that delivers jobs and jobs security, and that's as important for the world as it is for Australia," Mr Hockey said.

No-one from Infrastructure Australia was available for comment.