The Joint Standing Committee on the National Capital and External Territories is set to inquire into and report on the development of stage two of the ACT's light rail, three months after Liberal Senator Zed Seselja said he would push for the project to be referred to a parliamentary committee.

Light rail stage two needs to be approved by both houses of federal parliament because the route crosses Commonwealth land as it travels from Civic to Woden.

That presented an opportunity for the joint standing committee to provide an extra layer of scrutiny for the project, one that was not able to be applied for light rail stage one, Senator Seselja told Fairfax Media in February.

On Friday, he called the inquiry a "good result".

"The initial proposal of ACT Labor to remove lanes from Commonwealth Avenue and bottleneck traffic into and out of the city vindicates my position that this inquiry is necessary to ensure the best outcome for Canberrans," Senator Seselja said.

ACT Transport Minister Meegan Fitzharris said the territory government would cooperate with the inquiry and she "welcomed the opportunity to again make the case for a city-wide light rail network in Canberra".

“Light rail will transform our city and deliver a faster, more convenient and more sustainable public transport option for Canberra into the future," she said.

“It is my hope that this inquiry will provide all stakeholders with clarity about the approvals process, how we can best protect and enhance the heritage values and national importance of the Parliamentary Zone, and ensure all parties have a shared understanding of the huge benefit light rail will have for people in Woden, the Inner South and Canberra more broadly.

“While I fully expect the Canberra Liberals and Zed Seselja to do everything in their power to oppose and criticise light rail through this process, I would urge them to remember that this should first and foremost be about how we plan for Canberra's growth, reduce congestion and enhance liveability."

The committee is chaired by West Australian Liberal MP Ben Morton, but Labor MP and Member for Canberra Gai Brodtmann is deputy chair.

According to the terms of reference, the inquiry will look at the relevant parliamentary approval processes for works within the Parliamentary zone; the roles of the National Capital Authority and the Australian government in the project; and the possible impacts on the parliamentary zone.

However the scope could be considerably broader than that, with the committee indicating it will identify "matters that may be of concern prior to formal parliamentary or Australian government consideration of the project" and "any other relevant matter the committee wishes to examine".

Mr Morton said he had no interest in delving into ACT politics though.

"Ultimately the two houses of parliament have a role in approving this project. It cannot proceed through the National Capital area or the parliamentary zone without approval," he said.

"Rather than waiting for a formal submission from the ACT government we thought it would be useful to identify issues in advance that the ACT government can consider. We're pleased the ACT government has welcomed this opportunity and will be working with them to identify issues of concern to parliament."

Mr Morton said he wanted to steer clear of debate over the merits of light rail in Canberra too.

"This committee isn't getting into the arguments for and against light rail. It's my intention that the committee remain focused only on the approvals and processes involved. We're going to avoid local politics as that's a matter for territorians," he said.

Ms Brodtmann said the inquiry had "bipartisan support".

"I encourage Canberrans to have their say on this inquiry, particularly on the heritage values and national importance of the parliamentary precinct," Ms Brodtmann said.

However Public Transport Association of Canberra chair Damien Haas accused the federal parliament of trying to "interfere in the provision of better public transport for Canberrans".

"While all infrastructure projects should be subjected to scrutiny, the [association] would be disappointed if the Joint Standing Committee on the National Capital and External Territories went beyond the inquiries terms of reference and politicised a standard public transport project," Mr Haas said.

Canberra Liberals' transport spokeswoman Candice Burch said Labor's refusal to release full business cases for light rail meant they needed to be held to account.

"The federal parliamentary committee process can provide this accountability," Ms Burch said.

"The federal parliament needs to sign off on any route that goes through the parliamentary triangle anyway. It’s entirely appropriate that the federal parliament gets to ask hard questions of the ACT government."

Submissions close June 15. You can make a submission here.