NSW Premier Dominic Perrottet has accused Canberra of putting the budget bottom line before people and business, in a fresh round of criticism that the Morrison government believes is motivated by four state byelections scheduled for February 12.

As federal Treasurer Josh Frydenberg held the line against helping fund NSW’s latest round of business assistance and $500 handouts to parents of school children, saying not every state promise could be co-funded, Mr Perrottet and his Treasurer Matt Kean escalated the row.