The Chinese embassy in Australia branded the move "provocative".
Reviewing past deals with other nations, Payne on Wednesday also said she would revoke a 2004 memorandum of undertstanding between Victoria state and Iran on education as well as a scientific cooperation agreement with Syria of 1999.
Foreign Affairs Minister Marise Payne issued a statement to announce the two controversial BRI deals were among four cancelled under Australia's new Foreign Arrangements Scheme.
Australia said on Wednesday it has cancelled two deals struck by its state of Victoria with China on cooperation with Beijing's flagship Belt and Road Initiative, a far-reaching infrastructure and soft power programme.
Deploying Australia's powerful new veto powers under legislation passed past year for the first time, the Federal Government ended the deal, warning it was against Australia's interests.
Australia has scrapped agreements tied to China's Belt and Road initiative, prompting anger from Beijing and adding further strain to tense relations between the countries.
The foreign minister can assess such arrangements to check if they align with Australia's foreign policy goals.
It said it the action by Canberra was "bound to bring further damage to bilateral relations, and will only end up hurting itself".
- Framework agreement between the government of Victoria and the National Development and Reform Commission of the People's Republic of China on jointly promoting the framework of the Silk Road Economic Belt and the 21st Century Maritime Silk Road, signed on 23 October 2019.
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Police will wait for an order under the Emergency Program Act and any associated guidelines before proceeding, says the ministry. In their last update, given Monday , Henry and Dix announced 2,960 more people tested positive for COVID-19 over the weekend.
It also reflects the broader principle that foreign relations are a national matter and agreements by states and territories with foreign governments should not be at odds with the federal government's policies.
Relations between Canberra and Beijing have soured.
Foreign Minister Marise Payne said that four documents signed by the southeastern state of Victoria will be canceled.
China has in the past 12 months launched a series of damaging trade strikes against Australia after Prime Minister Scott Morrison called for an independent inquiry into the origins of the COVID-19 pandemic.
China has slapped tariffs on more than a dozen Australian products in what many see as punishment for Canberra's increasingly assertive stance against its largest trading partner.
Australia in 2018 passed sweeping national security laws that ban covert foreign interference in domestic politics.
The granting of veto powers to the foreign minister a year ago came in response to growing concerns in Australia that China was trying to exert influence through its investments.
Senator Payne said local governments and publicly funded universities had notified her of more than 1,000 foreign deals.