Prime Minister Anthony Albanese has declined to rule out his government putting more money into the $34.5 billion first phase of Melbourne’s Suburban Rail Loop despite a major report warning it not to do so unless Victoria can show that its funding model for the megaproject holds up.

State Opposition Leader Brad Battin on Monday called for contracts on the SRL East to be cancelled in response to the report, hardening the Coalition’s stance against the Allan government’s signature infrastructure project.