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.
Liberal Prime Minister Scott Morrison and his predecessor Malcolm Turnbull had declined to agree to a country-level MOU with China on the Belt and Road Initiative.
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.
China is Australia's biggest trading partner, but Australian leaders have previously shown no hesitation in standing up to Chinese political and economic influence.
The announcement came the same day a Chinese diplomat indicated that there will be no immediate thaw in ties between Beijing and Canberra.
"This is another unreasonable and provocative move taken by the Australian side against China", the embassy said in a statement.
It said it the action by Canberra was "bound to bring further damage to bilateral relations, and will only end up hurting itself".
Australia said it would revoke a state government's Belt and road deal to join China.
This scheme requires the federal government to cancel agreements that states, territories, local governments and universities enter into with an overseas government if they contradict the country's national interest, The Sydney Morning Herald reported.
Victorian Premier Daniel Andrews signed the BRI in 2018.
The country's position was expressed in a statement by a spokesperson for the Chinese Embassy in Australia on Wednesday.
Moreover, they are also anxious that China was using the BRI to load up poorer countries with debt and reduce Australia's influence in the region.
Victoria signed a memorandum of understanding in relation to the Chinese regional infrastructure initiative in 2018 and then signed a "framework agreement" with Beijing in 2019.
"I haven't seen the benefits of it", Morrison said earlier this year. "I don't have the answers to those questions at this point, but the assessment of those arrangements will continue".
Labor leader Anthony Albanese has declared his own opposition to the deals, pledging Labor would not seek similar agreements.
Scott Morrison said past year about belt and road that it was a program Australia's foreign policy did not recognise "because we don't believe it is consistent with Australia's national interest".
A Victorian government spokeswoman told national broadcaster ABC: "The Foreign Relations Act is entirely a matter for the Commonwealth government".
China has unofficially banned Australian imports of coal, sugar, barley, lobsters, wine, copper and log timber since November 2020.