The Senate have been warned there is a "a great risk" if major transport infrastructure is delivered, with the Sunshine Coast Rail and Gold Coast light rail extending to the airport chief among them, major councils in the region are warning.

The Sunshine Coast Regional Council is also in danger of having a shortfall of hotel accommodation needed for it to host Games events, it has been claimed.

The inquiry was set up by the Liberal-National Coalition, an alliance of centre-right political parties, and the Greens after Queensland Premier Annastacia Palaszczuk decided to abandon an independent infrastructure agency to oversee projects for the Games in favour of keeping it in-house.

The Sunshine Coast Rail project is subject to the Australian Government’s 90-day infrastructure review, sparking fears it could fall victim to cuts or be shortened to stop before Maroochydore.

Sunshine Coast Council’s Olympics programme lead Grantley Switzer claimed that upgrading the rail line between Beerwah and Nambour, as well as extending the line to link Beerwah to Caloundra, Kawana and Maroochydore, had to be a priority.

"There is great risk to the success of the 2032 Games if these transport projects are not delivered," he told The Courier-Mail.

"This is our moment to see vast improvements in major transport connectivity for the Sunshine Coast, and we are looking forward to further details from the state and Federal Governments on how and when that investment will occur."

Switzer also warned that with athletes and officials competing in events staged on Sunshine Coast’s Athletes Village in Maroochydore, more hotel space was being sought for other visitors.

"There are some concerns at this point in time that our region does have a shortfall in respect to the number of hotel and other short-term accommodation offerings required for the Brisbane 2032 Olympic and Paralympic Games," Switzer told The Courier-Mail.

Gold Coast Mayor Tom Tate, in his submission, claimed the city’s airport would be key to supporting arrivals and departures for the Games and extending the light rail was vital.

"This extension of light rail from Broadbeach to Coolangatta is recognised as 'critical transport infrastructure' in enabling the Gold Coast to support Queensland hosting Brisbane 2032," Tate said.

Gold Coast Light Rail stage 3 is under construction, so is exempt from the Australian Government’s infrastructure audit, but funding is still required for stage 4 linking Burleigh to Coolangatta.

It is not expected to be completed until 2031, the year before the Games, but has been elevated to "priority project" status by Infrastructure Australia, an independent statutory body providing research and advice to all levels of Government and industry on projects and reforms relating to investment in major projects in the country.