The proposed legislation is designed to enable eligible projects to access tax concessions if they meet relevant criteria.

"We are removing tax disincentives to encourage more private sector investment in infrastructure projects," Assistant Treasurer David Bradbury said.

"The measure will support up to $25 billion in new private sector infrastructure spending including major transport projects that will help … make our international gateways more competitive" he said.

The legislation will see the appointment of an infrastructure coordinator under the Infrastructure Australia Act, responsible for determining eligible projects.

To be eligible, projects will need to be included on Infrastructure Australia's infrastructure priority list and assessed as “ready to proceed”, with a percentage of the project privately owned or financed and construction not yet commenced.

"This new tax incentive … is an important part of a broader package of reforms to build the infrastructure Australia needs to compete in the 21st century," Infrastructure and Transport Minister Anthony Albanese said.

Consultation on the exposure draft legislation will run for two weeks, closing on April 30, 2013.

Copies of the draft legislation and accompanying material can be viewed at www.treasury.gov.au/ConsultationsandReviews/Submissions/2013/Designated-infrastructure-projects.