The Victorian Government could be forced to pay the Queensland Government's investment arm millions of dollars for ripping up the contract for Melbourne's East West Link.

The government-owned Queensland Investment Corporation (QIC) has a 30 per cent stake in East West Connect, the consortium contracted to build the $6.8 billion toll road.

The Labor Government plans to tear up the contract, which was signed by the former Napthine government eight weeks before last November's election.

Premier Daniel Andrews said it was fair to cover costs already incurred on the project, but not to compensate for lost future earnings.

"A shakedown, you might call it, about super-profits, and that's what the [previous] government signed us up to ... super-profits for these companies, that's not a fair thing," he said.

Opposition Leader Matthew Guy said Victorians would effectively end up funding infrastructure in Queensland.

"The Labor Government in Queensland should rename their next freeway the Daniel Andrews Freeway, because thanks to Daniel Andrews, Victorian taxpayers are going to pay for it," he said.

Premier driven by 'a good outcome for taxpayers'

Federal Assistant Infrastructure Minister Jamie Briggs said Mr Andrews was in a "farcical situation".

"To see that Victorians will be paying for new infrastructure in Queensland just highlights how silly a position Mr Andrews has got himself into," he said.

Mr Briggs said QIC had an obligation to its investors and shareholders to pursue the money.

A spokeswoman for QIC said the consortium was still negotiating with the Government about any compensation.

"The Victorian Government has entered into binding agreements with the consortium which include compensation should the project not proceed," she said.

"The consortium as a whole is working with the Victorian Government on a resolution."

Mr Andrews said he wanted to protect the interests of taxpayers.

"I'm not going to run a commentary on the likely outcome for each of the 29 different financial institutions that are part of this, that would not be responsible," he said.

"A good outcome for taxpayers, that's what's driving me in this and I won't waver from that."

Before the election Mr Andrews said the winning bidder would not get any compensation, and repeatedly said the contact was "not worth the paper it was written on".

The Government has instead fast-tracked planning money for its Melbourne Metro rail project, even though the Prime Minister has ruled out funding urban rail.

Mr Briggs warned $1.5 billion in Federal Government funding for the East West Link should not be spent on compensating the consortium.

"We're happy to talk to the Victorians about future plans, but we're not happy to see taxpayers' money spent on paying compensation instead of delivering new roads," he said.

The Government has not ruled out using special legislation to avoid paying more than $1 billion in compensation.

The Queensland Government said QIC was an independent body, so decisions were a matter for the corporation.