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NSW cabinet minister Brad Hazzard, whose government offered the Sydney Opera House to host the summit, said Ms Gillard had made a political move to reclaim support for her party in Queensland.
'She's chosen Brisbane simply to use the leaders of the world as political pawns in her game to try and win back the votes across Queensland,' he told AAP.
Mr Newman also criticised Sydney after NSW Planning Minister Brad Hazzard suggested Prime Minister Julia Gillard picked Brisbane to try to claw back votes.
Twisting the dagger, Mr Hazzard said Sydney was Australia's only true world city and holding the summit in Brisbane was insulting to world leaders.
As the NSW and Victorian governments claimed Sydney and Melbourne should have won the rights, Queensland Premier Campbell Newman rubbed salt into the wound.
'We've beaten them (NSW) seven times in a row in the State of Origin (rugby league series) and now we've secured the G20 2014 leaders meeting from our southern neighbours,' he said.
Victoria's Planning Minister Matthew Guy said the G20 should be in Melbourne.
'Clearly the federal government has some issues with their electoral support in Queensland and I think they're obviously playing a ... role in satisfying that demand,' Mr Guy told reporters.