Victorian Treasurer Tim Pallas has accused the federal government of using his state as a “milking cow” after this week’s mid-year financial update revealed the full impact on the states of the Albanese government’s infrastructure funding shake-up.

Federal Treasurer Jim Chalmers has insisted that no state will be worse off over a 10-year period, but treasurers around the country, grappling with higher interest costs, inflation, rising public sector wage bills and slower consumption hitting GST receipts, are stepping up their calls for Commonwealth support.