The project, which could save $320 million under the proposed royalty deal, was being discussed by the Queensland government cabinet, which is believed to be split on whether it should renege on a pre-election promise not to provide any financial assistance to the project.

“Adani is advised that the Queensland cabinet did not consider any submission or make a decision on royalties for the Adani project today,” an Adani spokesman said.

“In light of that, Adani has today deferred a decision by the board on FID [final investment decision] until the government makes a decision,” he said.

The Queensland government is also coming under growing pressure from environmentalists to not provide any further assistance to the project because of its effect on climate change and the health of the Great Barrier Reef despite the forecast job and investment creation opportunities it would provide to central Queensland.    

Agriculture Minister Bill Byrne said royalty arrangements were being considered by the government.

“Queensland Labor has always taken a sensible and prudent approach to resource development,” he said.

Federal Resources Minister Matt Canavan said “there's a serious question mark” over the Carmichael project now that was not there a week ago.

“I think it's a remarkable and embarrassing situation for Queensland that they don't even have a tax regime in place,” he said.

“This project has been under consideration for nearly seven years now. The Palaszczuk government has been in power for more than two years, and at the eleventh hour, to not even be able to tell Adani what tax they will pay less than a week before they were going to take it to their board is just unbelievable.

“It's a shocking condemnation of the chaos that exists within the Palaszczuk government. They are riven by in-fighting which is putting at risk thousands of jobs and investment in Queensland, desperately needed jobs in North Queensland. “The unemployment rate in Townsville is 11.3% at the moment. People there are just exasperated, including the mayors of North Queensland who travelled to India with Annastacia Palaszczuk only a couple of months ago.

“Some mayors – like Jenny Hill who is actually a member of the Labor Party or has been – are just pulling their hair out over what the hell is happening in Brisbane and why can't they get their act together.”

Opposition Leader Tim Nicholls told the ABC the state government had put Adani's multi-billion-dollar investment at risk.

"Labor should have come up with a decision and they've failed to do so," he said.

"But their failure to come to a decision, their bitter internal divisions, their desire to say one thing in north Queensland and another in the southeast, has led to the situation where Adani now is deferring its investment decision, and must be seriously wondering whether under this Labor government the project should go ahead.

"[The Queensland government] delayed and deferred it and the people that are paying the price are the Queenslanders that are looking for jobs in this sector."

A responsible government “would send Adani packing, not grant them a $320 million royalty freebie,” Australian Greens Deputy Leader Senator Larissa Waters said.

 “The Queensland government could create regional jobs by investing in clean energy, but they are hocked to the mining industry because of massive political donations,” she said.