The Melbourne Airport Rail Link, the Milton Ulladulla Bypass and a Tasman Bridge upgrade are among those that won't be scrapped, with no overall cut to the $120 billion infrastructure pipeline.
The government is tipping in additional funding to 11 projects, including South Australia's North-South Corridor ($2.7 billion), Queensland's Logan-Gold Coast Faster Rail ($1.75 billion) and Western Australia's Metronet ($1 billion).
Some nearby projects will be grouped in "corridors" while others will have a business case developed while remaining cash is saved for future construction.
A major upgrade of the Tasman Bridge in Hobart is set to go ahead.
Infrastructure Minister Catherine King said the new program was fit for purpose, fiscally responsible and deliverable.
She will unveil the full list of projects to be cut in a press conference in Canberra on Thursday.
"The independent review found the Infrastructure Investment Program we inherited could not be delivered," she said.
"With the co-operation of the states and territories we now have a forward plan of projects that are properly planned and targeted to unlock significant economic, social and environmental objectives."
Under the previous government, the number of infrastructure projects ballooned from 150 to 800.
In a major funding overhaul earlier this week, the Commonwealth said it would contribute 50 per cent of major project funding going forward.
It previously fully funded projects or at an 80-20 split with the states.
Premiers, including Queensland's Annastacia Palaszczuk and Chris Minns in NSW are not happy with the new arrangement and are unlikely to be impressed if their major projects are scrapped.
Nationals Senator Bridget McKenzie admitted financially-strong states such as WA and Queensland could probably afford to pay more, but others didn't have the cash.
"Victoria and NSW (have) incredibly challenging financial circumstances and pushing that back on state governments already struggling with debt and deficits as far as the eye can see means we're going to get less infrastructure," she told ABC TV on Wednesday.
"That 80-20 split was actually to incentivise and recognise that our state governments can't always stump up all the cash when it comes to maintaining and growing our road network to the safety of all Australians."
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