The Parliamentary Standing Committee on Public Works will hold an inquiry into the proposal, six months after Prime Minister Scott Morrison unveiled designs for the expansion.

The Governor-General's office said the referral was made on the request of government. Ordinarily such a referral would be made by the parliament but can be made by the governor-general when parliament has not sat for more than a month.

The Coalition-dominated committee will investigate the cost-effectiveness of the proposal, the need for the work and the amount of revenue it will produce.

The Public Works Committee Act 1969 requires public works within certain financial thresholds to be referred to the committee.

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A spokeswoman for Veteran Affairs Minister Darren Chester said the inquiry would ensure the project remained on track. Assistant Minister for Finance Zed Seselja said, "Now more than ever it is great to see money being spent sooner rather than later in Canberra."

The size and cost of the expansion has been the subject of controversy since plans were first revealed in November 2018.

The ambitious nine-year project - which will include demolishing and rebuilding Anzac Hall over three levels, a substantial increase to exhibition space, and a new entrance and new research centre - has attracted criticism from prominent Australians including novelist Tom Keneally and former Australian Human Rights Commission president Gillian Triggs.

However Mr Morrison said in November 2019 the new wing would to honour fully the contribution by veterans of recent conflicts and peace-keeping missions in Somalia, Afghanistan, Iraq and East Timor.

The committee will hold public hearings in June and July. Submissions will be accepted until June 17.