"This is an opportunity to roll out new infrastructure [and] to be a platform for new technology to deliver benefits for all Australians," he said, stressing that care must be taken to avoid the inconsistent "rail gauge" problem (different measurements in each state) that plagued Australia.

"We are at pains to emphasize the important thing is that standards are consistent with the private sector to ensure we can gain maximum benefit from this technology."

Hockey was pleased to report the states, particularly Queensland, are working closely with the federal government on interoperability, and while dealing with the banks in "a number of ways" the "bureaucratic resistance" has been difficult.

"The contribution of the banks has been extremely disappointing, so there's a reason for us to set up a payment system in competition with Eftpos," he said, adding there are compelling arguments to have banking systems talking to the smartcard.

"If banks can make the technology work for us, we are interested in any proposals they have," Hockey said. "I assume they are working on interoperability."