The Fund was created to guarantee country Australians access to new technology in perpetuity.

But Mr Truss claims Labor is now proposing to steal the principle and interest in the Fund to prop up its Building Australia Fund, with no commitment to provide any funding for future telecommunications upgrades in rural areas.

Mr Truss said this money was provided in good faith to future-proof telecommunications in rural and regional Australia following the sale of the last tranche of Telstra.

"Labor now plans to scrap the Communications Fund and roll the money into the Building Australia Fund. The BAF was to be $20 billion but with the surplus rapidly disappearing, it has been reduced to $12.6 billion," he said.

"That money is likely to go to failing Labor states and territories to fund infrastructure projects that in some cases were originally promised last century.

"Meanwhile, rural and regional people will suffer, as they have done right through Rudd Labor’s first year in power."

The Opposition will be moving amendments to legislation setting up the Building Australia Fund to protect the Communications Fund and its objectives.

The original $2 billion has now grown to $2.4 billion and must be maintained intact in perpetuity for future technology upgrades.