Prime Minister Scott Morrison and Opposition Leader Bill Shorten have agreed to spend millions of taxpayer dollars on the land destroyed by the 2002 Bali bombings.

The Bali Peace Park Association agreed on sale price of $4.9 million for the 700-square metre block of land, but now the site’s owners are demanding to be compensated for a restaurant project they intended to build on the land.

The Australian Government has already committed at least $3 million to the project, before factoring in the new claims for compensation.