Queensland Premier Annastacia Palaszczuk has announced her Government will have “no role in the future” of an assessment of a loan to Adani for its Carmichael coal mine.

The Northern Australia Infrastrucure Fund (NAIF) is considering a request by the Indian company for concessional Commonwealth funds for a rail link.

Ms Palaszczuk has revealed her partner Shaun Drabsch worked on the application with his employer, PricewaterhouseCoopers.

She has denied there was a conflict of interest and claimed the LNP in Canberra was poised to launch a smear campaign.

“I think we have reached a new low in Australian politics,” she told a press conference called late this afternoon.

“The LNP in Canberra have been circulating rumours. I have done everything by the book. My partner Shaun (Drabsch) has done everything by the book… and now during an election campaign, they seek to smear his name and my name.”

At a press conference, a visibly upset Ms Palaszczuk said her partner took on a part-time advisory role at PricewaterhouseCoopers in 2015 in infrastructure financing but that his work was commercial-in-confidence.

Ms Palaszczuk said she had not known her partner was working on the Adani loan application because they had not discussed it.

She said in the last 72 hours her chief of staff became aware the LNP was planning to use the information to suggest “wrongdoing” by Ms Palaszczuk.

“This afternoon I announce that my Government has had no role to date in the Federal Government’s assessment process for Adani — now we will have no role in the future,” she said.

“To action my decision, I propose to write to the Prime Minister [Malcolm Turnbull] to exercise its veto, to not support the NAIF loan and to remove perception of any conflict.

“As we are in caretaker mode a decision like this requires the support of the Opposition Leader.”

‘Malcolm Turnbull can give taxpayers’ money to Adani’

Ms Palaszczuk said she had sought advice from the Integrity Commissioner, which cleared her of any wrongdoing.

“Malcolm Turnbull can still give taxpayers’ money to Adani if he wants to, but I won’t stand for his LNP operatives trying to smear my good name and his [Shaun Drabsch] family’s name,” she said.

Ms Palaszczuk said Adani did not need the loan to make the project viable.

“They’ve always said that the project can stack up on its own two feet,” she said.

She blamed the Federal Government for leaking information of her partner’s involvement to allow for a potential smear campaign.

“The big question here is why is NAIF, through the Federal Government, breaching commercial-in-confidence arrangements between PWC and NAIF,” she said.