Mr Pallas, whose first budget included $1.5 billion for the rail project, has rejected federal offers of loans to fund the project, calling for a partnership with the Commonwealth instead to fund the project.
Mr Pallas' advice to Mr Turnbull was "stop pretending you are a merchant banker and start pretending to be a prime minister".
"While there was hope that Mr Turnbull would support the project, it is now evident that he is unwilling or incapable of doing so," Mr Pallas said.
"We just can't wait. We are deadly serious about delivering this project, and we will deliver it, with or without the federal government."