Fed Labor commits $200m to Canberra tram

Federal Labor will commit $200 million towards Canberra's light rail network if the party wins the next election.

Opposition Leader Bill Shorten is promising to include the funding in his first budget, along with a suite of other public transport projects across the country to tackle traffic congestion and create jobs.

"Canberra is our nation's proud capital and we will make sure this beautiful city shines and has the right infrastructure to attract new tourism and economic opportunities," he said in a statement on Tuesday.

The funding would go towards the second stage of the light rail project, extending the line over Lake Burley Griffin through the Parliamentary Triangle and on to Woden in Canberra's south.

The second stage requires federal legislation because it will pass through land controlled by the Commonwealth.

"This commitment ensures the ACT government can continue planning the project knowing it will attract federal support," Mr Shorten said.